VANCOUVER, BRITISH COLUMBIA–(Marketwired – Dec. 15, 2016) – DXI Energy Inc. (TSX:DXI)(OTCQB:DXIEF) (“DXI” or the “Company”), an upstream oil and gas exploration and production company operating in Colorado’s Piceance Basin and the Peace River Arch region in British Columbia, today announced its multi-phase plan to expand both production and landholdings at the Woodrush Project.
Woodrush Project Background
The Woodrush Project encompasses 14,444 net acres with 14 wells (3 oil and gas, 10 natural gas and one injector). DXI is the operator and owns 99% of the Project that is currently producing 315 BOEPD (30% oil). On a historical basis, $13 million has been invested in production facilities and related pipelines. Further, since commencement of production in 2008, Woodrush has generated well over $60 million in gross revenues from the sale of oil, gas, NGL’s, and sulphur, with net profits after royalties and field operating expenses, of approximately $28 million.
Phase 1: Growth and Sustainability
The Company will immediately implement a remedial program at Woodrush designed to improve daily oil production to the 200 BOPD range. The program will consist of the following:
- Stimulate the b-100 oil well to improve well productivity;
- Install a pumpjack in the southern field injector and re-configuring the “sweep” pattern of the current waterflood, and
- Acidize the northern water injector to increase water injectivity.
Phase 2: Long-term Value
Furthermore, given continued improvement in the commodity markets, the Company intends to drill three (3) new “lower risk” exploratory wells at Woodrush to test for Halfway oil and Gething gas on current and associated new leaseholds. This program is projected to increase daily production by an average 450 BOEPD on a fully risked basis. The Company is presently negotiating to secure the capital to pursue the proposed drilling program in Q1 & Q2 2017 on terms acceptable to the Company.
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 (28,164 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 Toronto Stock Exchange (DXI.TO) and the OTCQB (DXIEF).