NYSE: DXI TSX: DXI
• 25% Working Interest of 2200 acres (1,571 net, 2 leases) in gas and liquids prone E. Piceance Basin, Colorado
• Bordering acreage owned or controlled by large cap US independents
• Currently 4 Williams Fork wells in production (7% WI) with 3rd party engineer's "type curves" for the area
• Additional 7 Williams Fort Wells drill and cased, to be completed in Q3 2015
• New indicated vertical Mancos discovery drilled and cased (13,500'), to be complete for production Q3 2015
• Williams Fork P+P reserves (January 1, 2015) - 250 BCFe of gas with Dejour 25% share value of $54MM (disc @10%) - New Mancos discovery reserves additional to these reserve values
• Infrastructure in place at "south" lease (20 mmcf/d sales line, water PWD, access roads); development permits in progress for "north" lease
• Strong gas sales contract increases NGL "take" with nominal incremental cost
• Development Program includes over 220 Williams Fork and 40 Mancos well locations including:
139 PUD Williams For drilling location, 81 probable locations
At least 5 PUD and 35 probable Mancos drilling locations anticipated given a successful completion of existing wells.
DXI Energy's acreage is located adjacent to Barrett Resource lands that have seen significant recent drilling success and is sandwiched between Williams’s acreage which has been equally prolific. The Company’s acreage is adjacent to William’s Kokopelli field and almost certainly represents an extension of that field. To the west and adjacent to DXI’s holdings is Barrett and William’s extension of the Mamm Creek field.
The main producing formations are the Cretaceous Williams Fork and the Illes Members of the Mesa Verde Formation. These are sediments once deposited in the lowlands next to, and lining, a shallow seaway that extended from the Gulf of Mexico to the Arctic Ocean. In the Gibson Gulch area these sediments are found at depths 4500 ft. to 8100 ft.
Deeper producing formations are the fine grained sediment and shale of the Mancos Formation, including the Frontier Formation sands and sands and silts of the Niobrara Formation. These formations are fine grained and have been considered too tight to effectively be produced until the recent revolution in drilling and completion technologies.
Fracking Operations Pad 21A 2013