Frac Operations - Epley No. 1-H
VANCOUVER, BRITISH COLUMBIA - Doxa Energy Ltd. - TSX Venture Exchange DXA. - ("Doxa" or the "Company"), is excited to announce that it has commenced initial production with oil sales from the Epley project in South Texas, and to provide the following operational updates:
Epley No. 1-H, McMullen Co, TX
As previously reported, a 15 stage fracture stimulation operation and initial flowback has successfully been completed on the Epley No. 1-H, a horizontal Eagle Ford well operated by San Isidro Development Company. The well was recently shut-in for final hookup, pipeline and facility construction. Prior to shut-in, the well was being flowed back on a restricted choke (14/64") at a rate of 400 BOEPD (energy equivalent of 250 BOPD, 900 MCFD and 250 BWPD) with a flowing casing pressure of 1,920 psi, and approximately 15% of the frac load water recovered after two weeks of flow. Initial sales of oil production from the Epley well have commenced and the Company plans to release additional details once the well has been placed back on production with facility construction complete. Based on confirmation of commercially viable results on this initial well, Doxa expects that up to 5 gross wells may ultimately be drilled on the Epley Project.
John D. Harvison, President of Doxa stated today that:
"We are very excited to report that Doxa has achieved this milestone of becoming an energy producer in just over four months after approval of our qualifying transaction on May 15th".
Peeler No. 1-H, Atascosa Co, TX
In addition to commencement of first production from the Epley, drilling operations have just been completed on the initial Eagle Ford well on the Peeler Project, operated by Dewbre Operating of Corpus Christi, Texas. The Peeler Project, in which Doxa owns 20% working interest, is its previously disclosed Qualifying Transaction (see Doxa news, May 25, 2010). The Peeler No. 1-H was drilled to a total measured depth of 13,630', with a total in-zone lateral length of approximately 4,000'. The mud log for the well exhibits favorable characteristics for the targeted lower Eagle Ford formation. A 4-1/2" production liner has been run and cemented in place and the drilling rig released. Completion operations will begin in the near future and Doxa will provide additional updates when available. The Company estimates that as many as 10-14 wells could ultimately be drilled on the Peeler Project.
Koehn No. 1, Colorado Co, TX
The Company is also participating with a 6.25% working interest in the Koehn No. 1 well. Drilling operations have recently been completed on the Koehn well, which is the initial well on a previously announced conventional Wilcox prospect. A total depth of 10,227' was reached, and based on favorable well log evaluation of the objective Wilcox formation, 4 ½" production casing was run and cemented. The log analysis indicates approximately 135' of gross potential pay interval and 45' of net potential pay. Completion operations and facility construction have been commenced.
Doxa management is currently evaluating several new projects for possible participation and expects to make further announcements in this regard in the near future.
Furthermore, Doxa wishes to announce that it has entered into a 6 month prepaid agreement with Maximus Strategic Consulting Inc. of Delta, BC, ending March 15, 2011, to provide online advertising services by PinnacleDigest.com, an online investor information portal with content providers from across North America, Europe and Australia. Pinnacle promotes press releases of public companies in its newsletter and summarizes such company developments in a report format.
John D. Harvison
President, Chief Executive Officer
For further information contact: Scott Parsons Director or Paul McKenzie Director 604.642.2625 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.