Saxon Issues Operational Update for U.S. Assets
Saxon Oil has noted its ongoing exploration and production activity in Kansas, New Mexico, Oklahoma and Texas.
In Kansas, Saxon has purchased a 50% working interest in 1,440 acres of producing leaseholds located in Ellsworth County, Kansas in the Green Garden (Lansing) oil field and the Rathbun (Wabaunsee) gas field. The acreage has eight oil wells and six gas wells plus a gas compression station and interconnection into an interstate gas pipeline. An enhanced waterflood is planned for the deeper (3,000 ft) oil wells and significant workover and drilling activity is anticipated for the multiple shallow (2,000 ft) gas horizons. Saxon and its partner closed on the acquisition on September 30, 2008.
In New Mexico, the Eumont State No. 1 continues to flow oil at stabilized rates. Cumulative oil sales for the first 140 days of production exceeded 26,500 barrels of oil. Saxon owns a 15% working interest and a 12.5% net
revenue interest in this well and offset locations.
In Oklahoma, the Cimarex Weber State 5-13 located in Caddo County, Oklahoma reached a total depth of 16,250 feet. The well was evaluated with electric logs which indicated multiple gas bearing sands in the Skinner, Red Fork, Morrow and Springer intervals. Production casing was set to total depth and an initial completion attempt in the Springer sands is planned for late October. Saxon owns a .002848 % working interest in the Springer completion attempt but has a 3.44385 % working interest in the up-hole Red Fork sands.
In Texas, Saxon has executed a farmout of the Heatherwood Prospect in Burleson and Milam Counties Texas to CH4 Energy II, LLC ("CH4"). The farm-out calls for CH4 to drill a well on the leasehold by December 31, 2008 to a depth sufficient to test the Navarro formation. Saxon will receive a 25 % back-in after the payout of all costs incurred by CH4.
- Saxon to Participate in Tx. Gas Sand Development Project (Jan 18)
- Saxon Acquires 50% Interest in Eagle Ford Shale Play (May 05)
- Saxon Oil Commences Drilling on Kansas Well (Apr 22)