Saxon to Participate in East Texas Cotton Valley Well

Saxon Oil Company has agreed to participate in the drilling of a 10,400-foot Cotton Valley development well to be operated by Comstock Resources. Saxon is the second largest working interest owner in the Arnold Rusk 2-3 well with approximately 18.7 percent interest. Oak Hill field is located in Rusk County, Texas, and is a prolific gas producing field with significant historical production from the Jurassic-age Cotton Valley Limestone and multiple additional up-hole objective formations. Saxon currently owns working interest in eight producing wells in this field, all operated by Comstock. The gross completed well cost is estimated by Comstock to be $2,171,000 with a start date anticipated in the third quarter of 2007. Additional infill locations appear to exist under Saxon interest leasehold and the company anticipates additional development opportunities in this field.

Richard G. Green, President and CEO of Saxon, said, "We are pleased that Comstock has begun the infilling of this portion of Oak Hill field. Other operators have had excellent success with similar infilling programs in this and other Rusk County gas fields and we welcome the opportunity to participate. We have a significant working interest here and these wells could be very good producers." The success ratio in Cotton Valley development wells is nearly 100 percent in Oak Hill field and existing Saxon interest wells are estimated by third party evaluators to ultimately recover gas reserves ranging from 700 million cubic feet (MMcf) to over 3.4 billion cubic feet (Bcf). Existing estimated ultimate recoveries of gas averaging over 1.3 Bcf result in excellent anticipated economic returns on investment for this well.