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News Releases

Apr 30, 2012
Doxa Energy Ltd. Releases 2011 Reserve Report & Financial Results

VANCOUVER, BRITISH COLUMBIA -- Doxa Energy Ltd. ("Doxa" or the "Company") today released the Company's NI 51-101 Statement of Reserves Data and Other Oil & Gas Information along with the audited consolidated financial statements and related Management Discussion and Analysis for the year ended December 31, 2011. The audited consolidated financial statements have been prepared in accordance with International Financial Reporting Standards. All documents are available at

As of December 31, 2011 Doxa owned interests in 9 wells in production or in the process of being placed in production, and was receiving revenue from 5 wells. The Company anticipates that by the end of May, 2012 it will be receiving revenue from all 9 wells. The producing wells include 3 Eagle Ford Shale producers, 3 conventional Wilcox discoveries, and 3 completions within the Mississippian Oil Play of northern Oklahoma. For the three months ending December 31, 2011, Doxa received oil and gas revenues, net of royalties, taxes and production expenses totaling $263,800, as compared with $43,600 for the same period in 2010.

The Company also reports that as of December 31, 2011 it had acquired interests in 25,708 gross undeveloped acres of leasehold, being 4,993 net, as compared with 7,156 gross and 1,212 net at December 31, 2010.

Overall, Doxa management expects to participate in a total of 20 gross wells during 2012. The plans include 2 wells within the Eagle Ford Shale Play of south Texas, 12 wells within the Mississippian Oil Play of northern Oklahoma, 4 wells within the Sarco Creek 3-D Project, and 2 conventional vertical wells targeting Wilcox formation targets on the Texas Gulf Coast.

Production, Reserves and Financial Results - Year-End 2011

For the year ended December 31, 2011, the Company reported that its net production of oil and natural gas was 22.7 MBOE and 1.95 MBOE for the twelve months ending December 31, 2011 and 2010 respectively. In addition, during 2011 Doxa increased proved reserves 57% to 234.2 MBOE, over year-end 2010. The net present value of Doxa's proved reserves, before tax and using a 10% discount rate, increased 88% to $7.107 million, as compared with $3.782 million at the end of fiscal year 2010.

The Company's December 31, 2011 reserves were evaluated in accordance with National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities by Cawley, Gillespie and Associates, Inc., ("Cawley") Petroleum Consultants of Fort Worth, Texas. The report prepared by Cawley is dated March 13, 2012 and effective December 31, 2011.

Doxa recorded revenues attributable to oil and natural gas sales totaling $1,313,123 for the year 2011 as compared with $136,208 for the year of 2010. The Company reported a net loss for the twelve months ended December 31, 2011 of $3.675 million or ($0.12) per share, compared to a net loss of $3.548 million, or ($0.22) per share for the twelve months ended December 31, 2010. Significant factors in the loss recorded in 2011 include an impairment expense of $2.204 million for the Company's oil and gas properties, and a depletion, depreciation and amortization ("DD&A) expense of $468,949. Impairment and DD&A expenses recorded for fiscal year 2010 was $1.950 million, and $28,866 respectively.

Notable Project Updates

Mississippian Oil Play - The Company is actively participating in exploratory drilling activity within the Mississippian Oil Play. Six wells, all located in Alfalfa and Grant Counties, Oklahoma, are in various stages of drilling, completion or initial flowback, and Doxa's net working interest in each ranges from 1.67% to 5.0%. According to recent public disclosures by the leading operators in this play, including Chesapeake Energy Corp., SandRidge Energy and Eagle Energy, single well EURs are projected at 300-500 MBOE with drilling and completion costs estimated at US$3.2mil per well. Doxa management will report results of these exploratory activities when this information is available. SandRidge Energy, Inc. has recently reported that on average it estimates over 98% rate of return on this play, and expects to realize a net present value per well of approximately US$5.67mil (NPV10 based on 3/12/12 Nymex strip pricing).

Sarco Creek 3-D Project - As previously reported (see Doxa news February 22, 2012), Doxa has participated in a proprietary 3-D seismic survey covering more than 35 square miles in Goliad and Bee Counties, Texas. The company now reports that all Sarco Creek 3-D operations, as well as processing of field data by Geotrace Technologies of Houston has been completed. Geophysical evaluation and prospect generation is ongoing and the company plans to commence the drilling of initial exploratory wells this summer, and further expects to participate in 3-4 wells on this project during 2012. All of the planned wells will be targeting Miocene and Frio formation reservoirs above 5,000'.

On February 1, 2012, Doxa entered into an Acquisition and Assumption Agreement ("Agreement") covering 10% out of its 30% interest in the Sarco Creek 3-D Project (the "Sale"). The Agreement between Doxa, Armada Energy Inc. ("Armada") and The Harvey Group, LLC ("Harvey") provides for total cash proceeds payable to Doxa of US$568,552, in exchange for an assignment of 10% (in equal 5% shares to Armada and Harvey), subject to a reversion of 25% of such interest in favor of Doxa upon the occurrence of payout. In addition, Doxa is afforded the opportunity to repurchase the subject interest for a limited period by repayment of the original purchase price plus interest accrued at 10% per annum. As Armada and Harvey are owned and controlled by the Chairman (Arnold Armstrong) and President (John D. Harvison) of Doxa, respectively, the Sale is a 'related party transaction' within the meaning of Multilateral Instrument 61-101 (MI 61-101) (incorporated by reference into TSX-V policy 5-9). Doxa is relying on an exemption from the minority approval and formal valuation requirements of MI 61-101 due to the fact that the value of the portion of the property sold does not represent greater than 25% of the market capitalization of Doxa. The sale was approved by the TSX-V as well as the board of directors of Doxa. Proceeds of this sale will be used to fund ongoing operations.

Eagle Ford Shale Oil Play - On February 2, 2012, the Company agreed to sell 10.52% out of its 20% interest in the Peeler Ranch No. 2H well to third parties in an arm's length transaction. Proceeds from the transaction total $847,497, which funds have been used to fund ongoing operations. The third party buyers will have an option to purchase similar interests in subsequent proposed wells under the specified terms. The Peeler Ranch No. 2-H was completed and recently put on-line and Doxa expects to release details of its initial production rates in the near future.

Conventional Projects - As previously reported, during 2011 Doxa participated in 2 separate Wilcox discoveries, both located in southern McMullen County, Texas. The first of these, being the Martin-State Gas Unit No. 1 well was put on-line in June, 2011 and the Kynette Unit No. 1 well was put on-line in October, 2011. Together these wells are producing approximately 5,000 MCFD and 95 BCPD (barrels of condensate per day). Doxa owns a 14.0625% working interest in the Martin-State Gas Unit No. 1 well with a respective 10.4867% net revenue interest. As for the Kynette Unit No. 1 well, Doxa owns 16.70625% working interest BPO (12.5% net revenue) reverting to an estimated 12.5% working interest APO (est. 8.94% net revenue percent).

In order to meet its current cash obligations Doxa Energy has several financing (including non-equity financing) opportunities under review. The Company is also considering additional asset divestment opportunities. These steps would allow the Company to advance its oil & gas assets more expeditiously through the remainder of 2012.

About Doxa Energy Ltd.

Doxa Energy Ltd. develops and maintains a portfolio of producing and developing conventional and unconventional assets, including the Eagle Ford Shale Oil Play in South Texas, and the recently announced acreage acquisition in the Mississippian Oil Play of northern Oklahoma.

John D. Harvison
President, Chief Executive Officer

For further information contact:

Paul McKenzie, Director at 604.642.2625 or visit

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.


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