UPDATE 1-Saxon in talks with Schlumberger, First Reserve

(Adds details, including confirmation of talks from Schlumberger; updates shares.)

CALGARY, Alberta, April 21 (Reuters) - Saxon Energy Services Inc SES.TO said on Monday it is in exclusive discussions with Schlumberger Ltd (SLB.N: Quote, Profile, Research) and private-equity firm First Reserve Corp that could see the Canadian oilfield services firm sold for about C$592 million ($589 million).

Saxon said in a statement that a corporation owned by Schlumberger, the world's largest oilfield services firm, and First Reserve, were looking at bidding C$7 a share for the Canadian firm, which has 84.6 million shares outstanding.

Saxon, a drilling firm with operations in North and South America, issued the release "in response to recent volatility in its share price and speculation regarding a potential acquisition of Saxon."

The company's shares rose 13 percent last week and touched a record C$7.39 on Friday, before closing at C$6.99 on the Toronto Stock Exchange. The stock rose 3 Canadian cents to C$7.02 on Monday on volume of 2.38 million shares, more than seven times the three-month average.

Schlumberger confirmed it is in talks with Saxon but offered no further details.

"We are in discussions with Saxon and First Reserve but the discussions are preliminary at this point," said Stephen Harris, a spokesman for Schlumberger.

Saxon said it and Schlumberger have joint operations in Mexico and Colombia and that Schlumberger was among the company's biggest customers, accounting for 16 percent of its revenue and crucial to its growth.

In its release, Saxon said a special committee of the board has been struck to handle the discussions. The committee has agreed to negotiate exclusively with Schlumberger and First Reserve until May 5.

($1=$1.005 Canadian) (Reporting by Scott Haggett; editing by Rob Wilson)