Sovereign Chief Ventures Ltd.

March 31, 2006 07:00 ET

Sovereign Commences 2006 Drilling Program with Cobb Creek Prospect

DALLAS--(CCNMatthews - Mar 31, 2006) -

Sovereign Chief Ventures Ltd. (TSX:SCV) announces the commencement of drilling on its Cobb Creek prospect in the eastern portion of Washita County, Oklahoma. The primary zone of interest, the Red Fork, is a proven gas-producing formation in this area of western Oklahoma.

The first well in the prospect, the Seger Indian School #2-22 well, will take approximately three weeks to drill to its planned total depth of about 14,200 ft and an additional three weeks to complete. Sovereign has a 10% working interest in the Cobb Creek prospect, which will double to 20% if the proposed acquisition of Saxon Oil Company is approved by shareholders (see press release dated March 13, 2006). The total costs to drill and complete the well are estimated to be $2.4 million.

The Cobb Creek Prospect consists of approximately 2,000 acres, with the potential to drill 10 to 15 additional wells, and is located 6 miles west of the Lasley project, in which Sovereign has interests in 25 producing Red Fork wells.

"Cobb Creek is the first step in an aggressive drilling program Sovereign has planned for 2006," said Steve Saxon, president and chief financial officer of Sovereign. "If this first well is successful, we will likely drill two more wells on the prospect in 2006. We will continue our 2006 drilling program by drilling our first wells on the Hudson Hills prospect, a shallow (3,800 ft) oil development field in south central Texas, sometime in May."

Sovereign has a 50% working interest in the Hudson Hills prospect, which, again, will double if the proposed acquisition is approved. Sovereign has initially leased 2,000 acres in the area, with the potential for 45 wells.

Earlier this month Sovereign announced that at its annual and special meeting of its shareholders, to be held on April 10, 2006 in Vancouver, British Columbia, the Company will ask shareholders to approve the proposed acquisition of Saxon Oil Company. The combined company will have approximately double its current oil and gas reserves. The Company will also ask shareholders to approve a name change from Sovereign Chief Ventures Ltd. to Saxon Oil Company Ltd.

NOTE: This news release includes certain "forward-looking statements." All statements other than statements of historical fact included in this release, including, without limitation, statements regarding potential production, drilling results and future plans and objectives of the Company, 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. Important factors that could cause actual results to differ materially from the Company's expectations are exploration, completion and production risks detailed herein and from time to time in the filings made by the Company with securities regulators.

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

Contact Information

  • Sovereign Chief Ventures Ltd.
    Sioux Sinnott, 214-234-0552