DXI Energy : poised to begin drilling at British Columbia project
We are pleased to report that we are in receipt of licenses and permits required to mobilize a rig to spud the first of several exploration wells intended to demonstrate high potential targets delineated by the third quarter and fourth quarter integration and re-interpretation of multiple 3D surveys over much of the companys 13,000-acre leasehold at Woodrush in northeastern B.C., said
The commencement of this drilling phase is a very exciting time for the company and we remain confident in our plan to significantly extend our existing oil pools south and east of the current producing wells and surface facilities while maximizing both netbacks and IRR, he said.
Permit applications for the Woodrush drilling program were approved by the appropriate regulatory authorities on
DXI is an upstream oil and gas exploration and production company with a focus on
The company has been operating its 99%-owned Woodrush property for roughly a decade, with production exceeding 675,000 barrels of oil. The project is located in an area that has historically been a hot spot for oil production in B.C.
The reservoirs that DXI is targeting have been dubbed Halfway due to the relatively equal percentages of oil and gas that tend to occur.
The company has previously said a new seismic interpretation using high resolution sensor geophysical data has identified numerous targets similar to amplitude and depth, but believed to be much larger in area and extent to the existing Woodrush oil pool. This new 3D interpretation encompasses approximately 6,000 to 14,000 acres owned and operated by DXI, the company said.
DXIs aim is to expand production volumes, reserve life and value and develop sustainable cash flows to support its growth strategy at Woodrush.
Under the terms of the agreement, the unnamed investment firm will pay approximately two-thirds of the total costs of the first well in the 2018 program, through tie-in, to earn a 15% gross overriding royalty.
All subsequent well and secondary recovery costs will be shared on a 50/50 basis with DXI for the same return. There will be no equity dilution nor interest expense to DXI.
On Monday, DXI shares rose 10% or
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