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News Releases

Apr 29, 2013
Doxa Energy Ltd. Announces Improved 2012 Financial Results and Increase In Reserves

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, 2012. The audited consolidated financial statements have been prepared in accordance with International Financial Reporting Standards. All documents are available at

Full Year 2012 Highlights

  • Net Income of $294,832, or $0.01 per share on increased revenues of $2,153,519, as compared with a net loss of $3,675,558, or $(0.12) per share in 2011, on revenues of $1,313,123. Earnings before interest, taxes, depreciation and amortization ("EBITDA") for the year were $1,469,614 compared to $(2,706,821) in 2011.

  • Net production for the year was 58.4 MBOE, a two-fold increase over the 2011 total of 22.7 MBOE.

  • Increased proved reserves to 486.4 MBOE at December 31, 2012, more than double the previous year-end total of 234.2 MBOE.

  • Increased PV-10 value of proved reserves by 54% over prior year, before tax, to $10,959 million, as compared with $7.107 million at the end of fiscal year 2011.

As of December 31, 2012 Doxa owned interests in 22 wells in production with 8 additional wells in various stages of drilling and completion. The producing wells include 4 conventional wells completed in the Wilcox formation, and 18 producers within the Mississippian Lime Play of northern Oklahoma, or Eagle Ford Shale trend of south Texas.

The Company also reports as of year-end 2012 it owned interests in 17,686 gross undeveloped acres of leasehold, being 3,480 net acres, as compared with 25,708 gross and 4,993 net at December 31, 2011.

Overall, Doxa management expects to participate in a total of 27 gross wells during 2013. The plan includes 3 conventional wells targeting the Frio and Wilcox formations on the Texas Gulf Coast and 24 horizontal wells within the Mississippian Lime Play of northern Oklahoma.

John D. Harvison, President and CEO, commented today that:

"During 2012 we established significant momentum for the Company, which is continuing in 2013. In 2012 we were able to double our production and reserve growth over the same period a year ago. We have continued to de-risk our net acreage position in the Mississippian Lime Play which we believe will provide years of potential growth for Doxa, and ultimately deliver attractive financial returns for our shareholders."

Financial Summary -- Full Year 2012

For the year ended December 31, 2012 the Company experienced a net income of $294,832 as compared to a net loss of $(3,675,558) in 2011. The earnings per share was $0.01 as compared to loss per share of $(0.12) in 2011. EBITDA for the year were $1,469,614 compared to a loss before interest, taxes, depreciation and amortization of $(2,706,821) in 2011. During the period the Company realized a gain on the sale of various undeveloped properties, as well as a recovery of impairment of property and equipment, which are incorporated in the financial results.

The Company had gross revenue from oil and gas production from twenty-two wells during the year of $2,153,519, as compared with $1,313,123 from six wells in 2011.

Lease operating expenses for the year were $319,980 as compared to $194,175 in 2011. The increase in operating expenses is due to the increase in number of wells from six to twenty-two.

The Company had exploration expense of $309,656 during the year ended 2012. The exploration expenses result from the related investments in drilling two dry holes on the Sarco Creek 3-D project during the first quarter of 2013. During the prior year period the Company incurred $1,004,229 in exploration expense resulting from the drilling of four dry exploration wells on four different prospects.

Production and Reserves - Year-End 2012

The Company's December 31, 2012 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 April 24, 2013 and effective December 31, 2012.

Proved reserves at December 31, 2012 more than doubled to 486.4 MBOE, over year-end 2011 proven reserves of 234.2 MBOE. The year-end 2012 proved reserves consists of 129.3 MBBL of oil and 2,142.3 MMCF of natural gas, as compared with 50.8 MBBL of oil and 1,100.4 MMCF of natural gas in 2011. In addition, Cawley estimates probable reserves, net to the Company, of 135.1 MBOE, consisting of 57.6 MBBL oil and 465.1 MMCF natural gas, as compared with no comparable reserves in 2011.

The net present value of Doxa's proved reserves, before tax and using a 10% discount rate ("PV-10"), increased 54% to $10.959 million, as compared with $7.107 million at the end of fiscal year 2011.

The Company more than doubled its net production of oil and gas in 2012 to 58.4 MBOE, as compared with 22.7 MBOE for the twelve months ending December 31, 2011. During 2012 the Company produced 13,230 BBLs of oil and 271,217 MCF of natural gas, versus 8,151 BBLs of oil and 87,335 MCF of natural gas for the same period in 2011.

Notable Project Updates

Mississippian Lime Play -- The Company continues to actively participate in exploratory and development drilling within the Mississippian Lime Play of northern Oklahoma. Doxa owns undivided interests in 17,347 gross acres of leasehold (being 3,469 net), primarily situated in Alfalfa, Grant and Kay Counties, Oklahoma. As of December 31, 2012 the Company had participated in sixteen gross wells, or 0.48 net, with several additional wells in various stages of drilling and completion. The Company invested approximately $2 million in drilling and completing the sixteen producing wells, which at year end were generating approximately $90,000 in net revenue per month after deduction for royalty and taxes.

Sarco Creek 3-D Project -- As previously reported, Doxa owns 30% interest in a proprietary 3-D seismic survey covering more than 35 square miles in Goliad and Bee Counties, Texas. During 2012 the Company participated in two out of four planned initial exploratory wells, which were both unsuccessful. Management expects to commence an additional well in the second quarter 2013, and subject to favorable results a fourth well in the second half of the year. The primary objective in the planned drilling is the Frio formation above 5,000'.

Eagle Ford Shale Play -- On February 2, 2012 the Company agreed to sell 10.52% out of its 20% interest in the proposed Peeler Ranch No. 2-H 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. Doxa retained 9.48% working interest in the Peeler Ranch No. 2-H well, which was successfully completed. Also during 2012, Company management announced its intent to divest of its remaining undeveloped holdings in the Eagle Ford Shale Play in order to intensify its efforts and resources on the continuing development of its interest in the Mississippian Lime Play. In this regard, on July 19, 2012 and August 6, 2012, respectively, the Company closed on the sale of its remaining 13% under the Pfluger undeveloped leasehold and 20% under the Peeler Ranch undeveloped leasehold, both of which are located in Atascosa County, Texas. Collectively, the divestiture included Doxa's interest under 2,565 gross acres (465 net acres) and resulted in sales proceeds net to the Company of $644,293.

Conventional Projects -- Also in 2012, the Company participated in the Koehn Unit No. 2 well, being the 2nd well drilled on the New Beilau Prospect in Colorado County, Texas. The Koehn No. 2 well was drilled and successfully completed in the Wilcox formation in October, 2012. The well is currently producing in perforations at 9,618-68 feet at a rate of 95 BOPD and 650 MCFD. Doxa participated for a 12.5% working interest subject to the terms of a governing Joint Operating Agreement.

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 Mississippian Lime Play of northern Oklahoma.

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 2013.

John D. Harvison
President, Chief Executive Officer

For further information contact: Paul McKenzie, Director at 604.662.3692 or visit



Glossary of Abbreviations

BBL         barrel

BOPD     barrels of oil per day

BOE        barrels of oil equivalent(1)

BOEPD   barrels of oil equivalent per day

MCF        1,000 cubic feet of natural gas

MCFD     1,000 cubic feet of natural gas per day

(1)     BOE conversion ratio of 6 MCF: l BBL is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Disclosure provided herein in respect of BOEs may be misleading, particularly if used in isolation.


The following table sets forth certain standard conversions between Standard Imperial Units and the International System of units (or metric units).

To Convert From:


Cubic metres


Cubic metres








Cubic metres

Cubic feet

Cubic metres








Multiply By:













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 news 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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