Doxa Energy to Commence Drilling on Sarco Creek 3D Project in
Doxa Energy to Commence Drilling on Sarco Creek 3D Project in South Texas
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, Texas.
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.
Contacts: Doxa Energy Ltd. Paul McKenzie 604.662.3692 604.662.3231 (FAX) www.doxaenergy.com