Saxon Takes Working Interest In New Projects.

DALLAS -- Saxon Oil Company Ltd. (TSX VENTURE:SXN) is committed to effective exploration and development of oil and gas reserves to deliver strong shareholder returns. Saxon has enhanced and expanded the management team to accelerate our ability to find quality investment projects.

Saxon executed an agreement with KEPCO Operating for a non-operated ten percent (10%) working interest in the Hailey No. 1 in the Nebo-Hemphill Field, LaSalle Parish, Louisiana. The well was drilled in the 4th quarter 2006 and pipe was set. The well targeted the Wilcox A-4 sand and logged 13 net feet of oil to a shale break in a 20 foot gross sand interval. Excellent permeability and porosity of 26 percent were confirmed by sidewall cores. The Operator has advised Saxon that it plans to complete the well in February and is awaiting arrival of the completion rig at this time.

Saxon also committed to a ten percent (10%) working interest in the East Sherman Prospect, a re-entry and deepening to the Ordovician-age Oil Creek Sandstone in Grayson County, Texas with KEPCO. The Douthat #1 has been successfully cleaned out to the old well total depth utilizing a workover rig and the Operator is waiting on a drilling rig to deepen the well to the objective reservoir. Work on this well is expected to be complete by March of 2007.

Saxon remains committed to two West Texas wildcat wells testing the Pennsylvanian age Wolfcamp and the Ordovician age Ellenberger. These opportunities have been reviewed by new management and appear to be viable exploration opportunities. Originally scheduled for the fourth quarter of 2006 these have now been delayed to at least the second quarter of 2007 largely due to rig availability issues.

Hudson Hills oil and gas production from the Cretaceous age Navarro sandstone in Central Texas has been established. This lease acreage of shallow oil production was historically stimulated using either hydrochloric acid or limited sand fracture stimulation. Saxon introduced a new stimulation technique that utilizes coiled tubing to create one inch diameter 300 foot long horizontal laterals that are then fracture stimulated and packed. We are encouraged with the initial production rates from the wells treated with radial jet lateral enhancement technology. Subsequent to completion we experienced minor mechanical problems due to sand influx and scale precipitation impeding the pumps. After determination of reservoir pressures and waiting on suitable workover rig to pull tubing and change out the pumps, production has been re-established. We have substantial lease positions at Hudson Hills and in the nearby Heatherwood area. Saxon plans further exploration activity during the second quarter in both Hudson Hills and Heatherwood.

We have reviewed numerous Barnett Shale ventures in the past three months that we have not participated in. The cost of drilling and completing horizontal Barnett wells increased by over 30 percent in 2006 and coupled with lower gas prices have materially and adversely affected the economics of many areas of this large producing region. We believe some areas of the very large North Texas trend remain attractive but until drilling costs moderate or product prices improve we will remain conservative in our approach to this play.

Our new management team at Saxon is committed to partnering with private international companies that employ state of the industry techniques in seismic and completion to increase success ratios and profitability. We are reviewing very high impact projects in widely varying geographic regions (as opposed to prospects in limited areas) for participation by the firm. We feel strongly that by exposure to these ventures we can substantially increase our reserve and cash flow base and improve investor returns. As we commit to these opportunities, we will attempt to keep our stockholders informed and current on all our activities. We remain committed to growth through drilling and acquisition of production that contains substantial growth potential to our company and investors.

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.

To find out more about Saxon Oil Company Ltd. visit our website at www.saxonoilcompany.com.

This press release includes certain "Forward-Looking Statements" within the meaning of section 21E of the United States Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included herein, including without limitation, statements regarding plans for completion, production potential, other targeted areas and expansion and development plans and objectives of Saxon Oil Company Ltd. are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.

The TSX Venture Exchange does not accept responsibility for the adequacy and accuracy of this release.