TSX: DXI OTCQB: DXIE
• 25% Working Interest in 2,200 acres (550 net, 2 leases) in gas and liquids prone E. Piceance Basin, Colorado
• Bordering acreage owned or controlled by large cap US independents (over 600 wells)
• Current Status (Q3 2016):
4 Williams Fork wells in production (7% WI) with 3rd party engineer's "type curves" for the area
7 Williams Fork Wells drilled and cased, and completed September 2015
New vertical 13,500' Mancos discovery (25%WI) in production since October 2015
1 PWD (Disposal) well, fully equipped and permitted to handle 4000BW/d
Current net production (25% WI) of 1,000 mcf/d and 15 bbl/d of NGLS's for a total of 182 BOE/d
Williams Fork P+P reserves (January 1, 201) - 250 BCFe+ (gas and NGL's) with DXI's, 25% share valued at $22.5MM (PV@10%)
Infrastructure in place at "south" lease (17 mmcf/d sales line, water PWD, access roads); development permits in progress for "north" lease
Gas sales contract in place to Meeker Cryogenic plant designed to increase NGL "take" with nominal incremental cost
• Development Program* can include up an additional 210 Williams Fork and 50 Mancos well locations including:
131 WF PUD drilling locations
79 WF probable drilling locations
*Subject to >US$3.00/mcf gas price at wellhead
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