Saxon Cinches Lease Position in Bossier/Haynesville Shale

Saxon Oil Company Ltd. announced that the company has 1273 gross acres located within the published area of the rapidly emerging Lower Bossier/Haynesville Shale resource play of North Louisiana and East Texas.

Saxon interest acreage is operated by Comstock Resources and is located in Panola and Rusk Counties Texas in portions of the Oak Hill, North Tatum and Carthage Northwest Fields. The eleven producing Saxon wells produce from the Cotton Valley Limestone which overlies Bossier/Haynesville Shale and Saxon's working interest varies in those wells from 18 to 23 percent.

The Jurassic-age Bossier Shale was considered the source rock for much of the Cotton Valley gas well production in Northeast Texas and is contiguous with the Haynesville Shale in North Louisiana. Until recently the Bossier Shale was not considered a target for exploration and exploitation drilling. The Bossier/Haynesville shale play is now the target for intensive leasing and horizontal drilling activity by such prominent industry operators as Chesapeake, PennVirginia, Petrohawk, El Paso, EnCana and XTO.

Increased gas prices plus utilization of horizontal drilling and massive multiple fracture stimulations have made this an emerging resource play. These wells are completed in a similar fashion to the more mature Fayetteville, Woodford and Barnett Shale resource plays. Area acreage prices have reportedly increased from $100 per acre to as much as $17,000 per acre and twelve rigs are currently drilling in this rapidly expanding exploration play.