VANCOUVER , BRITISH COLUMBIA - Doxa Energy Ltd. - TSX Venture Exchange DXA ("Doxa" or the "Company"), is pleased to provide the following operational updates:
Davis-McCrary No. 1
Doxa reports that drilling operations were commenced on November 11, 2010 and have been successfully completed on the Davis-McCrary No. 1 well in Atascosa County , Texas . Dynamic Production, Inc., operator of this venture, drilled the well to total objective depth of 7,846' in order to test the Edwards formation. Logging and coring operations were undertaken and based on favorable results from log analysis, 5 ½" casing was run and cemented. Well completion operations will be commenced immediately. This is the initial well on the 233 acre Davis-McCrary prospect, in which Doxa owns a 42.5% working interest and a 32.727% net revenue interest. The Company plans to release additional details once the well has been completed and results are available.
New Beilau Prospect
Doxa also disclosed that the previously reported Koehn No. 1 well in Colorado County , Texas was placed on production on November 23, 2010 and at last report was producing 534 MCFD, 95 BOPD and 0 BWPD on an 8/64" choke flowing with 2,050 psi flowing tubing pressure. The Company owns a 6.25% working interest along with a 4.6875% net revenue interest, and expects that 1-2 additional development wells will be drilled on the project.
Peeler Ranch Eagle Ford Project
As previously noted, drilling operations on the Dewbre Operating - Peeler No. 1-H have been completed, 4 ½" liner run and cemented, and completion operations have commenced. The Peeler No. 1-H well was Doxa's Qualifying Transaction (see Doxa news, May 25, 2010) and is the Company's second Eagle Ford formation test within the updip oil window of the play. A multi- stage frac stimulation is planned for the well in January, 2011. The first Eagle Ford completion in which Doxa participated is the San Isidro - Epley No. 1-H well in McMullen County , which was placed on production in September, 2010. The Company estimates that as many as 10-14 wells could ultimately be drilled on the Peeler Project, under which it owns a 20% working interest and a 15% net revenue interest.
Sarco Creek 3D Acquisition Project
Finally, surveying and line clearing operations are continuing and nearing completion on the Sarco Creek 3D seismic acquisition project in Goliad and Bee Counties , Texas . According to Dynamic Production, Inc., manager of the project, due to weather related delays, data acquisition activities are now scheduled to begin by late-December, 2010 and should be completed within 45-60 days. Thereafter processing of the newly acquired data will be undertaken and is projected to be completed in March, 2011 at which time the dataset will initially be evaluated for oil and gas development opportunities in the Miocene and Frio formations above 5,000'. Doxa has acquired a thirty percent (30%) interest in this project.
John D. Harvison
President, Chief Executive Officer
For further information contact:
Scott Parsons or Paul McKenzie , Directors at 1.888.662.DOXA (3692) or visit www.doxaenergy.com
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. 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.
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.