DALLAS, December 17 /CNW/ - Saxon Oil Company Ltd. ("Saxon") (PINK
 SHEETS:SXNOF) (TSX VENTURE:SXN) (FRANKFURT:OVG) (BERLIN:OVG) announced today
 that Western Oil and Gas, operator of the Lasley Project, has commenced
 drilling the Williams 3-9 well in Caddo County Oklahoma. The well has an
 estimated total depth of approximately 14,000 ft and will target multiple Red
 Fork sands. Saxon has a 4.4% interest in this development well. The estimated
 cost to drill and complete this well is $2.2 million USD. Lasley Field is the
 largest concentration of gas wells in Saxon's portfolio of oil and gas
 properties.
 
                    Completion operations continue on the Eumont State well in New Mexico and
 on the Jackson-Williams Unit well in South Texas. Production is anticipated in
 the first quarter of 2008 on both of these wells. Saxon owns a 15% interest in
 the Eumont well and a 0.88% interest in the Jackson Williams well.
 
                    Comstock Resources has delayed drilling of the Arnold Rust 1-3 well in
 Oak Hill Field until the second quarter of 2008. Saxon is the second largest
 owner in this well with an 18.7% interest. The Arnold Rust 1-3 is another
 development well in the Cotton Valley play. Earlier this fall Saxon
 successfully completed the Arnold Rust 2-3 gas well on an adjacent lease.
 
                    In other news, Saxon has agreed to participate in a 2,755-acre
 proprietary 3-D seismic survey in Ellis and Rooks Counties, Kansas. The target
 area involves five oil companies and will be conducted by a Denver-based
 seismic acquisition company. Saxon has 160 acres and a producing well
 ("Marianna") within the boundary of the seismic survey. The Marianna well and
 the acreage were acquired with the producing wells purchased from Castle
 Resources in August 2007. The seismic survey will identify potential drilling
 locations on the Saxon acreage.
 
                    In the last month Saxon was successful in acquiring additional minority
 interests in five oil leases in Kansas in which Saxon currently owns majority
 interest. The interests acquired averaged over 3%. Saxon Oil Company currently
 operates 26 wells in Kansas.
 
                    About Saxon Oil Company Ltd:
 
                    Saxon Oil Company is a Tier One Texas-based Canadian company, trading on
 the TSX Venture Exchange under the symbol SXN. The Company is an independent
 oil and gas company engaged in the acquisition, development and production of
 oil and natural gas reserves. The Company seeks to deliver strong shareholder
 returns through an effective exploration and development program that
 incorporates sound business practices with the latest oil field technologies.
 The goal is to steadily increase proven reserves of oil and natural gas -
 which, in turn, will lead to enhanced cash flows and earnings per share.