DXI Energy Releases P&NG Reserves Data for 2015

VANCOUVER, BRITISH COLUMBIA–(Marketwired – March 18, 2016) – DXI Energy Inc. (TSX:DXI) (NYSE MKT:DXI) (“DXI Energy” or the “Company”) announces today that it has released its P&NG reserves data for 2015.

Consolidated petroleum and natural gas (“P&NG”) reserves in Canada and the USA were 13,992,000 BOE at December 31, 2015. Ninety-six percent (96%) of the Company’s P&NG reserves at December 31, 2015 are located in the USA at the Company’s “Kokopelli” project in Garfield County, Colorado.

Summary of Oil and Gas Reserves and Net Present Values of Future Net Revenue As at December 31, 2015 Forecast Prices and Costs

		Light and Medium Oil		Natural Gas		Natural Gas Liquids		Total
		(Mbbl)		(MMcf)		(Mbbl)		(Mboe)
		Gross	Net	Gross	Net	Gross	Net	Gross	Net
Proved Developed Producing
	Canada	172	145	1,024	1,016	2	2	345	316
	United States	–	–	2,273	1,641	72	58	450	331
	Total	172	145	3,297	2,657	74	60	795	647
Proved Developed Non-Producing
	Canada	–	–	324	307	1	1	55	52
	United States	–	–	668	461	33	27	144	103
	Total	–	–	992	768	34	28	199	155
Proved Undeveloped
	Canada	–	–	–	–	–	–	–	–
	United States	–	–	37,504	25,897	1,861	1,489	8,111	5,805
	Total	–	–	37,504	25,897	1,861	1,489	8,111	5,805
Total Proved
	Canada	172	145	1,348	1,323	3	3	400	368
	United States	–	–	40,445	27,999	1,965	1,573	8,706	6,239
	Total	172	145	41,793	29,322	1,968	1,576	9,106	6,607
Probable
	Canada	34	29	495	479	1	1	118	110
	United States	–	–	22,045	15,222	1,094	875	4,768	3,412
	Total	34	29	22,540	15,701	1,095	876	4,886	3,522
Total Proved Plus Probable
	Canada	206	174	1,843	1,802	4	4	518	478
	United States	–	–	62,490	43,221	3,059	2,448	13,474	9,651
	Total	206	174	64,333	45,023	3,063	2,452	13,992	10,129



		Net Present Value of Future Net Revenue Discounted at (%/Year)
		Before Income Taxes						After Income Taxes						Unit
Reserves Category		0%	5%	10%	15%	20%		0%	5%	10%	15%	20%		Value
		(in thousands of Canadian dollars)												($/BOE)
Proved Developed
Producing
	Canada	2,534	2,629	2,654	2,640	2,602		2,534	2,629	2,654	2,640	2,602		8.40
	United States	6,379	3,971	2,938	2,383	2,037		4,210	2,621	1,939	1,573	1,344		8.87
	Total	8,913	6,600	5,592	5,023	4,639		6,744	5,250	4,593	4,213	3,946		8.64
Proved Developed
Non-Producing
	Canada	226	245	253	254	252		226	245	253	254	252		4.90
	United States	2,823	1,376	923	718	599		1,863	908	609	474	396		8.93
	Total	3,049	1,621	1,176	972	851		2,089	1,153	862	728	648		7.57
Proved Undeveloped
	Canada	–	–	–	–	–		–	–	–	–	–		–
	United States	87,984	31,220	10,336	395	(5,197	)	60,789	22,043	7,339	107	(4,079	)	1.78
	Total	87,984	31,220	10,336	395	(5,197	)	60,789	22,043	7,339	107	(4,079	)	1.78
Total Proved
	Canada	2,760	2,874	2,907	2,894	2,854		2,760	2,874	2,907	2,894	2,854		7.91
	United States	97,186	36,567	14,197	3,496	(2,561	)	66,862	25,572	9,887	2,154	(2,340	)	2.28
	Total	99,946	39,441	17,104	6,390	294		69,622	28,446	12,794	5,048	514		2.59
Probable
	Canada	1,327	1,218	1,115	1,021	939		1,327	1,218	1,115	1,021	939		10.17
	United States	61,610	22,726	9,403	3,565	603		42,261	15,799	6,509	2,347	200		2.76
	Total	62,937	23,944	10,518	4,586	1,542		43,588	17,017	7,624	3,368	1,139		2.99
Total Proved Plus
Probable
	Canada	4,087	4,092	4,022	3,915	3,793		4,087	4,092	4,022	3,915	3,793		8.43
	United States	158,795	59,293	23,600	7,061	(1,958	)	109,123	41,371	16,397	4,500	(2,140	)	2.45
	Total	162,882	63,385	27,622	10,976	1,835		113,210	45,463	20,419	8,415	1,653		2.73


Total Future Net Revenue (Undiscounted) as at December 31, 2015 Forecast Prices and Costs
(in thousands of Canadian dollars)

		Revenue	Royalties	Operating Costs	Development Costs	Abandonment Costs	Future Net Revenue Before Income Taxes	Income Taxes	Future Net Revenue After Income Taxes
Reserves Category		$	$	$	$	$	$	$	$
Proved Reserves
	Canada	13,326	1,545	8,042	15	963	2,760	–	2,760
	United States	356,027	71,134	132,589	54,391	727	97,185	30,323	66,862
	Total	369,353	72,679	140,631	54,406	1,690	99,945	30,323	69,622
Proved plus Probable
Reserves
	Canada	17,331	1,937	10,313	15	978	4,087	–	4,087
	United States	564,966	112,922	205,761	86,362	1,127	158,795	49,672	109,123
	Total	582,297	114,859	216,074	86,377	2,105	162,882	49,672	113,210


Summary of Pricing and Inflation Rate Assumptions Forecast Prices and Costs
Canada – Crude Oil and Natural Gas Liquids Price Forecast


		Bank of Canada Average Noon	NYMEX WTI Near Month Futures Contract Crude Oil at Cushing Oklahoma		ICE BRENT Near Month Futures Contract Crude Oil FOB North Sea	Light, Sweet Crude Oil at Edmonton	Bow River Crude Oil Stream Quality at Hardisty	WCS Crude Oil Stream Quality at Hardisty	Heavy Crude Oil Proxy at Hardisty	Light Crude Oil at Cromer	Medium Crude Oil at Cromer	Alberta Natural Gas Liquids (Then Current Dollars)
Year	Inflation %	Exchange Rate $US/$Cdn	Constant 2016$ $US/bbl	Then Current $US/bbl	Then Current $US/bbl	Then Current $Cdn/bbl	Then Current $Cdn/bbl	Then Current $Cdn/bbl	Then Current $Cdn/bbl	Then Current $Cdn/bbl	Then Current $Cdn/bbl	Spec Ethane $Cdn/bbl	Edmonton Propane $Cdn/bbl	Edmonton Butane $Cdn/bbl	Edmonton Pentanes Plus $Cdn/bbl

2016	2.0	0.725	44.00	44.00	45.00	55.86	42.82	42.26	35.70	53.59	50.80	8.82	9.58	41.90	60.79

2017	2.0	0.750	50.98	52.00	54.00	64.00	51.84	51.20	45.02	62.72	59.52	10.55	16.00	48.00	68.48

2018	2.0	0.775	55.75	58.00	61.00	68.39	56.08	55.39	49.06	67.02	63.60	11.19	20.52	51.29	73.17

2019	2.0	0.800	60.31	64.00	67.00	73.75	61.58	60.84	54.42	72.28	68.59	11.81	25.81	55.31	78.91

2020	2.0	0.825	64.67	70.00	73.00	78.79	66.97	66.18	59.75	77.21	73.27	12.44	27.58	59.09	84.30

2021	2.0	0.850	67.93	75.00	78.00	82.35	70.82	70.00	63.56	80.71	76.59	12.74	28.82	61.76	88.12

2022	2.0	0.850	71.04	80.00	83.00	88.24	76.76	75.88	69.32	86.47	82.06	13.43	30.88	66.18	94.41

2023	2.0	0.850	74.00	85.00	88.00	94.12	82.35	81.41	74.62	92.24	87.53	14.12	32.94	70.59	100.71

2024	2.0	0.850	75.00	87.88	91.39	96.48	85.87	84.90	78.40	94.55	89.73	14.81	33.77	72.36	103.24

2025	2.0	0.850	75.00	89.63	93.22	98.41	87.59	86.60	79.99	96.44	91.52	15.15	34.44	73.81	105.30

2026+	2.0	0.850	75.00	+2.0%/yr	+2.0%/yr	+2.0%/yr	+2.0%/yr	+2.0%/yr	+2.0%/yr	+2.0%/yr	+2.0%/yr	Escalate at 2% per year


Canada – Natural Gas and Sulphur Price Forecast


	NYMEX Near Month Contract	Midwest Price @ Chicago	AECO/NIT Spot	Alberta Plant Gate				Saskatchewan Plant Gate			British Columbia




Year	Then Current $US/mmbtu	Then Current $US/mmbtu	Then Current $Cdn/mmbtu	Spot Constant 2016 $ $/mmbtu	Spot Then Current $/mmbtu	ARP $/mmbtu	Alliance $/mmbtu	Sask Energy $/mmbtu	Spot $/mmbtu	Sumas Spot $US/mmbtu	Westcoast Station 2 $/mmbtu	Spot Plant Gate $/mmbtu	Sulphur FOB Vancouver $US/LT	Alberta Sulphur at Plant Gate $Cdn/LT

2016	2.60	2.70	2.76	2.53	2.53	2.53	2.23	2.63	2.67	2.40	2.01	1.83	125.00	122.41

2017	3.10	3.20	3.27	2.97	3.03	3.03	2.72	3.13	3.18	2.90	2.77	2.58	125.00	116.67

2018	3.30	3.40	3.45	3.09	3.21	3.21	2.87	3.31	3.36	3.10	3.05	2.86	127.50	114.52

2019	3.50	3.60	3.63	3.20	3.39	3.39	3.02	3.49	3.54	3.30	3.38	3.19	130.05	112.56

2020	3.70	3.80	3.81	3.30	3.57	3.57	3.15	3.67	3.72	3.50	3.56	3.37	132.65	110.79

2021	3.90	4.00	3.90	3.32	3.66	3.66	3.29	3.76	3.81	3.70	3.65	3.46	135.30	109.18

2022	4.10	4.20	4.10	3.43	3.86	3.86	3.51	3.96	4.01	3.90	3.85	3.66	138.01	112.36

2023	4.30	4.40	4.30	3.53	4.06	4.06	3.74	4.16	4.21	4.10	4.05	3.86	140.77	115.61

2024	4.50	4.60	4.50	3.63	4.26	4.26	3.96	4.35	4.41	4.30	4.25	4.06	143.59	118.93

2025	4.60	4.70	4.60	3.64	4.35	4.35	4.08	4.45	4.51	4.40	4.35	4.16	146.46	122.31

2026+	+2.0%/yr	+2.0%/yr	+2.0%/yr	3.64	+2.0%/yr	+2.0%/yr	+2.0%/yr	+2.0%/yr	+2.0%/yr	+2.0%/yr	+2.0%/yr	+2.0%/yr	+2.0%/yr	+2.0%/yr


United States – Oil, Natural Gas Liquids and Natural Gas Price Forecast

Year	Oil $US/bbl	Natural Gas Liquids $US/bbl	Natural Gas $US/bbl

2016	35.06	22.51	2.69

2017	41.43	26.84	3.21

2018	46.21	28.57	3.41

2019	51.00	30.30	3.62

2020	55.78	32.03	3.83

2021	59.76	33.77	4.03

2022	63.74	35.50	4.24

2023	67.73	37.23	4.45

2024	70.02	38.96	4.65

2025	71.42	39.83	4.76

2026+	+2%/yr	+2%/yr	+2%/yr

Pursuant to NYSE MKT Company Guide Section 610(b) the Company discloses that its audited consolidated financial statements for the fiscal year ended December 31, 2015, included in the Company’s Form 6-K, which was filed on March 10, 2016 with the Securities and Exchange Commission, contained an audit opinion from its independent registered public accounting firm that included a going concern qualification.

About DXI ENERGY INC.

DXI Energy Inc. is an upstream oil and natural gas exploration and production company operating projects in Colorado’s Piceance Basin (39,352 net acres) and the Peace River Arch region in British Columbia (14,444 net acres). DXI Energy Inc. maintains offices in Calgary and Vancouver, Canada. The company is publicly traded on the New York Stock Exchange (NYSE MKT:DXI) and Toronto Stock Exchange (DXI.TO).

Advisories & Contact

Statements Regarding Forward-Looking Information: This news release contains statements about oil and gas production and operating activities that may constitute “forward-looking statements” or “forward- looking information” within the meaning of applicable securities legislation as they involve the implied assessment that the resources described can be profitably produced in the future, based on certain estimates and assumptions. Forward-looking statements are based on current expectations, estimates and projections that involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those anticipated by DXI Energy and described in the forward-looking statements. These risks, uncertainties and other factors include, but are not limited to, adverse general economic conditions, operating hazards, drilling risks, inherent uncertainties in interpreting engineering and geologic data, competition, reduced availability of drilling and other well services, fluctuations in oil and gas prices and prices for drilling and other well services, government regulation and foreign political risks, fluctuations in the exchange rate between Canadian and US dollars and other currencies, as well as other risks commonly associated with the exploration and development of oil and gas properties. Additional information on these and other factors, which could affect DXI Energy Inc.’s operations or financial results, are included in DXI Energy Inc.’s reports on file with Canadian and United States securities regulatory authorities. Other risks include the Company’s ongoing review by NYSE MKT (“the Exchange”) to ensure the Company continues to regain compliance with Section 1003(a)(iv) of the Company Guide which addresses a Company’s ability to operate as a going concern. We assume no obligation to update forward-looking statements should circumstances or management’s estimates or opinions change unless otherwise required under securities law.

The TSX does not accept responsibility for the adequacy or accuracy of this news release.

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DXI Energy Inc.
Robert L. Hodgkinson
Chairman & CEO
604-638-5055
investor@dxienergy.com

DXI Energy Inc.
Craig Allison
Investor Releations- New York
914-882-0960
callison@dxienergy.com

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