Doxa Energy to Commence Drilling on Sarco Creek 3D Project in South
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 11/07/12 -- Doxa
Energy Ltd. ("Doxa" or the "Company") (TSX
VENTURE:DXA)(OTCBB:DXAEF)(FRANKFURT:5D0) announced today that it
anticipates commencement of drilling operations on its Sarco Creek
project in South Texas within 30 days. Furthermore, Doxa has elected
to exercise its option to repurchase a 10% leasehold interest in the
Sarco Creek property thereby reestablishing Doxa's interest at 30%.
Total consideration paid by Doxa for the repurchase is US$620,192
(please see Doxa news February 22, 2012).
Two initial test wells are planned on the Sarco Creek project, with
each well slated to be drilled vertically to a proposed total depth
of 5,300'. The locations for these initial wells were based on
evaluation of the 42 square mile proprietary 3D seismic survey
recently conducted. Several additional development drilling locations
have been identified on the Sarco Creek project and are scheduled to
be drilled early in 2013, provided favorable results are obtained on
these initial wells. The two planned wells will both target lower
Frio formation oil sands, which have been found commercially
productive in the area. These target sands are found productive in
approximately 48 area wells within a 3 by 6 mile (5 by 10 km) area in
the eastern part of the 3D seismic survey, and have produced a total
of about 2.75 million bbls of oil and 11.9 BCF of gas.
The Company estimates that its share of the completed well costs,
including both wells, will total US$498,000. Both of the planned
wells will be operated by Dynamic Production, Inc., of Fort Worth,
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.
This news 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.
Doxa Energy Ltd.
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