Doxa Set to Expand Into Horizontal Mississippian Oil Play, Oklahoma
April 28 2011 - 8:51AM
Marketwired
Doxa Energy Ltd. ("Doxa" or the "Company") (TSX VENTURE:
DXA)(OTCBB: DXAEF)(FRANKFURT: 5D0) announces that it has entered
into a Letter of Intent ("LOI") to acquire an option of an
undivided leasehold interest under approximately 18,000 gross acres
in the emerging Mississippian Oil Play ("Mississippian Oil Play")
in Oklahoma. The LOI, entered into with managing partner, Dynamic
Production, Inc. of Fort Worth, Texas, provides that Doxa will have
until May 20, 2011 in which to elect to acquire up to twenty
percent (20%) under the recently assembled lease block, resulting
in 3,600 net acres to the Company. The Mississippian Oil Play is an
emerging horizontal play that has the potential to become one of
the most profitable domestic onshore oil plays today. The
Mississippian Oil Play is led by Chesapeake Energy Corporation,
SandRidge Energy, Inc. and Eagle Energy of Oklahoma, LLC. All of
Doxa's proposed leases are situated in Alfalfa, Garfield, Grant and
Kay Counties, Oklahoma.
According to recent public disclosures by these leading
companies, this play exhibits excellent economics with single well
estimated ultimate recovery projected at 300-400 MBOE and with
estimated drilling and completion costs under US$3.0mil per well.
In its presentation to the IPAA this month in New York, SandRidge
announced that after drilling 52 wells in the play, it expects to
achieve over 150% (i)ROR, and a net present value per well of
US$6.3mil, based on the Nymex strip pricing as of March 18, 2011.
Based on current well spacing estimates from area operators, Doxa
anticipates that up to 72 gross wells may ultimately be drilling on
the acreage block, or 14 net wells to Doxa, provided it elects to
participate for twenty percent (20%). The Company plans to release
additional information on the proposed acquisition once details are
finalized. The terms of the LOI provide for closing on or before
June 3, 2011. At this time Doxa is unaware as to whether or not the
aforementioned volumes and estimates pertaining to the
Mississippian Oil Play are NI 51-101 compliant.
John D. Harvison, President & Chief Executive Officer
(i) ROR refers to first year Rate of Return
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. One MBOE is defined as one thousand barrels of oil
equivalent.
This new 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.
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.
Contacts: Doxa Energy Ltd. Scott Parsons Director 604-662-3692
Doxa Energy Ltd. Paul McKenzie Director 604-662-3692 604-642-2629
(FAX) info@doxaenergy.com www.doxaenergy.com
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