NYSE: DXI TSX: DXI
• 25% Working Interest of 2200 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)
• Currently Status:
4 Williams Fork wells in production (7% WI) with 3rd party engineer's "type curves" for the area
7 Williams Fort Wells drill and cased, and completed September 2015, plus
New vertical 13,500' Mancos discovery (25%) in production since October 2015
1 PWD (Disposal) well, fully equipped and permitted to handle 4000BW/d
Production capacity restricted to 11 mmcf/d plus oil and NGL's
Indicative IP tests planned for January 2016
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 (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 includes over 210 Williams Fork and 50 Mancos additional well locations including:
11 WF PDP locations in production
139 WF PUD drilling locations additional
81 WF probable drilling locations additional
1 PDP Mancos location in production
At least 5 Mancos PUD and 35+ Mancos probable 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