Doxa Energy Ltd. Provides Operational Updates
03 Maio 2011 - 9:00AM
Marketwired
Doxa Energy Ltd. ("Doxa" or the "Company") (TSX VENTURE:
DXA)(OTCBB: DXAEF)(FRANKFURT: 5D0) is pleased to report that it has
interest in five wells in production or in the process of being
placed in production. The Company expects that all five wells
should be producing and accruing cash flow by June 1st of this
year. These wells include the Peeler Ranch No. 1-H, Epley No. 1-H,
Sartain Assets Oil Unit No. 1-H, Koehn No. 1 and Martin-State Gas
Unit No. 1. Furthermore, Doxa management reports that as a result
of its success related to the projects encompassing these wells, it
intends to significantly increase its cash flow in the second half
of 2011 by capitalizing on numerous low risk, development wells
offsetting those mentioned above. Doxa will participate in as many
as eight new wells in the remainder of 2011.
Since its inception in mid-2010, Doxa has acquired the right to
participate in drilling and seismic ventures covering 35,000 gross
acres (primarily exploration) in South Texas representing 11,000
net acres to Doxa. This includes approximately 5,500 gross acres
(1,000 net to Doxa) in the prolific Eagle Ford Shale, South Texas.
Doxa has the potential to participate in up to 34 total wells in
the Eagle Ford Shale alone, representing approximately 20% of the
Company's current total US acreage. The Company has interest in
over 50 future potential drilling locations with additions expected
after the evaluation of 40 square miles of recently completed
proprietary 3D seismic operations on its Sarco Creek Project. The
Company is constantly pursuing new opportunities that could
significantly increase its exploration and development footprint in
the US, including the recently announced option to acquire a 20%
interest under 18,000 acres in the emerging Mississippian Oil Play
in northern Oklahoma (see Doxa news, April 28, 2011). The following
updates outline more specifically what is transpiring on some of
Doxa's current projects:
Peeler Ranch No. 1-H
As previously reported (see Doxa news, March 27, 2011), flow
back operations were recently commenced on the Dewbre Operating -
Peeler Ranch No. 1-H ("Peeler Ranch") after frac while plans for
gas lift facilities are being finalized. In this regard, initial
sales of oil and gas have commenced and the well achieved a high
rate of over 300 BOPD and 150 MCFPD (325 BOEPD). Offset Operators
have reported per well EUR (estimated ultimate recovery) in the
range of 254-356 MBOE, which is in-line with Doxa's expectations
for wells drilled on this project. The Company further anticipates
that 10-14 wells could ultimately be drilled on the 2,005 acre
Peeler Ranch lease, based on adjacent well spacing by EOG Resources
Ltd. (NYSE) and others. The initial well is continuing to produce
naturally pending installation of gas lift facilities, which is
expected in the near term. As reported, the Peeler Ranch No. 1-H is
the initial well on the Peeler Ranch Prospect, which was Doxa's
Qualifying Transaction (see Doxa news, May 25, 2010). Doxa expects
to commence the second well on this project within the next 90
days.
Sartain Assets Oil Unit No. 1-H
Doxa further disclosed that AWP Operating Company of San
Antonio, Texas has initiated oil production and first sales from
the Sartain Assets Oil Unit No. 1-H in Frio County, Texas. This
initial well on the Sartain Assets Prospect is a re-entry of an
existing well, which was horizontally drilled in excess of 4,200'
within the Pearsall (Austin Chalk) formation at a true vertical
depth of approximately 6,000'. The well is producing at a rate of
over 200 BOPD on pump. Doxa owns a 12.5% working interest along
with a 9.375% net revenue interest in this project. The company
expects that 2-3 additional wells may ultimately be drilled on this
project.
Sarco Creek 3D
The Company reports that all Sarco Creek 3D seismic operations
have been completed and processing of the field data by Geotrace
Technologies of Houston, Texas has commenced. Processing is
expected to be completed in about 30 days after which, geophysical
evaluation and prospect generation will commence. As previously
reported, the data will initially be evaluated for oil and gas
development opportunities in the Miocene and Frio formations above
5,000'.
Emshoff Unit No. 1ST
Furthermore, Doxa reports that the initial well on the Emshoff
Prospect has been drilled to its total projected true vertical
depth of the 16,400' and logged. Based on evaluation of the logs
and other tests performed by Dynamic Production, Inc. as operator
of the project, the well will be plugged and abandoned as a dry
hole due to lack of development of the objective sands. The Company
does not expect to participate in any additional wells on this
project.
About Doxa Energy:
Doxa Energy Ltd. is an oil & gas production/development and
exploration company concentrating on onshore only projects in the
United States with a mix of unconventional (including the Eagle
Ford Shale) and conventional projects. The Company is also
reviewing additional US, onshore focused oil & gas
opportunities. Doxa is committed to becoming a leading oil &
gas company, achieving superior financial and operating results
while simultaneously utilizing sound business, social,
environmental and safety practices. Additional information on Doxa
is available on the Company's website www.doxaenergy.com.
John D. Harvison, President, Chief Executive Officer
Statements in this press release other than purely historical
information, including statements relating to the Company's future
plans, objectives or expected results, constitute forward-looking
statements. Forward-looking statements are based on numerous
assumptions and are subject to the risks and uncertainties inherent
in the Company's business, including risks inherent in oil and gas
exploration and development, and uncertainties in connection with
anticipated commodity prices for oil and natural gas, growth of
worldwide market demand, exploration capital requirements, length
of asset life and availability of qualified personnel, among others
As a result, actual results may vary materially from those
described in the forward-looking statements.
All references in this press release to BOE are based on a 6 Mcf
to 1 Bbl conversion ratio. BOE's may be misleading particularly if
used in isolation. A BOE conversion of 6 Mcf to 1 Bbl is based on
the energy equivalency conversion method primarily applicable at
the burner tip and does not represent a value equivalency at the
wellhead.
BOPD refers to barrels of oil per day. MCFPD refers to thousand
cubic feet of natural gas per day. BOEPD refers to barrels of oil
equivalent per day based on a 6Mcf to 1 Bbl conversion ratio. One
MBOE is defined as one thousand barrels of oil equivalent.
This new release does not constitute an offer to sell or the
solicitation of an offer to buy any securities of the Company in
the United States. The securities of Doxa have not been registered
under the U.S. Securities Act of 1933, as amended, or any state
securities laws, and may not be offered or sold in the United
States or to or for the account or benefit of a U.S. person unless
so registered or pursuant to an available exemption from the
registration requirements of such Act or laws.
Neither TSX Venture Exchange nor its Regulation Services
providers (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Contacts: Doxa Energy Ltd. Paul McKenzie Director 604.662.3692
Doxa Energy Ltd. Scott Parsons Director 604.662.3692 604.642.2629
(FAX) www.doxaenergy.com
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