Jan 28, 2014
Doxa Provides Operational Updates and Announces Participation In Three New South Texas Projects
Agreements in Three New Conventional South Texas Exploration Projects
Realizes Gain in
Divestment of Portion of Mississippian Play Leasehold
Focuses on Increased Level
of Participation in Upcoming Projects
VANCOUVER, CANADA --Doxa Energy
Ltd. ("Doxa" or the "Company") today announced that it recently entered into
definitive agreements providing for its participation in three (3) new
conventional oil & gas exploration projects in southern Texas. Two of the
projects are focused on the Queen City formation at depths above 6,000'
subsurface in areas which historically produce oil, and the third project will
be targeting gas/condensate production from the expanded Yegua formation on the
Gulf Coast. Furthermore, operations for drilling and evaluating initial test
wells on two of the projects commenced in the fourth quarter 2013 and are
ongoing. Each of the new projects offer potential for development wells.
Additional details of all three projects will be released in the near future
upon completion of ongoing operations and leasing efforts. Doxa's level of
participation in the two Queen City projects vary from 15-20%, and is set at
4.5% in the Yegua formation test, subject to certain terms and conditions set
forth in the respective agreements.
Furthermore, Doxa reports that in late 2013 it closed the sale of various leases
within its Mississippian Lime Play project, northern Oklahoma, including
approximately 700 net acres out of its 3,600 net acre original lease block.
Included in the sales were three wells then in the process of being drilled,
completed and/or had recently commenced producing. The Company received total
proceeds of approximately US$1.2mil as a result of these sales, which it used to
reduce debt and fund ongoing operations, including the new projects. As
previously reported, Doxa's average cost of acquisition per acre in the
Mississippian Play totals about $760 per acre, while the calculated average
price received for the noted sales of leasehold is $1,454 per acre. The Company
also received reimbursement of out-of-pocket costs associated with the included
wells. For the third quarter of 2013, Doxa's oil and gas revenues averaged
$205,000 per month, consisting of $89,000 attributable to its interests in the
Mississippian Play and $116,000 derived from conventional and other projects. At
that time, oil sales accounted for 62% of the revenue stream, and natural gas
sales accounted for 38%.
Doxa reports as of this date, it has participated in twenty-nine (29) new
horizontal wells in the Mississippian Lime Play primarily with either SandRidge
Exploration and Production, LLC or Chesapeake Operating, Inc., both of Oklahoma
City, Oklahoma as project operator. Also, as of this date, the Company has
another Mississippian well in the process of being drilled and/or completed, in
addition to the two (2) conventional wells described above. Acquisition of the
above mentioned new projects, together with the recent sale of certain
Mississippian project leases reflect Doxa management's decision to refocus
significant effort from the Mississippian Play, where the Company's net
interests are relatively small in relation to average barrels per day of oil
(equivalent) per well to much larger participation in oil prone conventional
projects that have the potential to add substantially greater value to Doxa's
asset base. Doxa however still remains committed to continued participation in
additional wells within its remaining acreage in the Mississippian Play, subject
to lease terms and continued individual prospect evaluation.
John D. Harvison, President and CEO of Doxa commented that: "We continue to
evaluate new opportunities and refocus our efforts toward projects that will
have the potential of providing substantial growth in the value of Doxa's assets
as well as net cash flow. We are confident that these efforts will ultimately
provide our shareholders with attractive financial returns."
About Doxa Energy Ltd.
Doxa Energy Ltd. develops and maintains a portfolio of producing and developing
conventional and unconventional assets, including the Mississippian Lime Play in
northern Oklahoma, Frio, Wilcox and Eagle Ford Shale trends in South Texas.
John D. Harvison
President, Chief Executive Officer
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For further information contact:
Paul McKenzie, Director at 604.642.2625 or visit</font><font size="2" face="Arial" s advancing the Mann Lake Uranium Project located in Saskatchewan's prolific Athabasca basin. This is a joint venture with Cameco as operator and Areva---two of world's largest companies.</font>
<a target="_blank" href="http://www.doxaenergy.com/">
<p align="justify">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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