doxa energy ltd (DXA) Snapshot

Doxa Energy Ltd. provided operational updates for the First Five Months of 2013. The company reports that during the first five months of 2013, nine (9) new horizontal wells were completed and put on-line in the Mississippian Lime Play. Average peak production rates for the twenty-three (23) wells that have been producing for at least 30 days total 240 barrels of oil equivalent (BOE) per day, 138 barrels of oil (BOPD) and 607 thousand cubic feet of natural gas (MCFD). The most recent completed horizontal well, situated in central Alfalfa County, Oklahoma, was put on-line within the last week at a peak 24 hour rate in excess of 650 BOEPD, comprised of 380 BOPD and 1,700 MCFD. In addition, estimates for completed well costs have declined from an average of $3.7 million for the 16 gross wells Doxa participated in 2012, to just over $3.4 for the 9 wells completed in 2013. Well costs are expected to continue to decline and eventually average $3.1 - $3.2 million per well, as infrastructure is completed and efficiencies improve. To date, the company has invested approximately $3.0 million in drilling and completing the 26 producing wells, which are currently generating approximately $80,000 in aggregate net revenue per month after deduction of royalty and taxes. With regard to the 26 wells Doxa has participated in so far, 52% of the total BOE production is comprised of oil and 48% natural gas. The company’s current monthly revenue attributable to all wells it has participated in is approximately $225,000 per month. Lease operating expenses on average account for approximately 16% of the revenue stream. Estimated drilling and completion cost, net to Doxa's interest, averages $117,000 per well. In addition to the foregoing update on its Mississippian operations, Doxa reported recent results at its Sarco Creek project in Goliad County, Texas. A third conventional shallow well drilled on the project to a depth of 5,525 feet subsurface failed to encounter commercial quantities of oil or gas and was deemed a dry hole. Management has decided to suspend additional drilling on this project pending re-evaluation of the geological/geophysical data relied on in selecting prospect locations. Doxa's estimated share of drilling cost for the well is $120,000 for its 30% interest. In addition, the company plans to participate in at least fifteen (15) additional wells during the remainder of 2013, with working interests ranging from 1.67% to 5% net. The majority of the wells are being operated by SandRidge Exploration and Production, LLC of Oklahoma City.

Doxa Energy Ltd. reported audited consolidated earnings results for the year ended December 31, 2012. For the year, the company reported net Income of $294,832, or $0.01 per share on increased revenues of $2,153,519, as compared with a net loss of $3,675,558, or $0.12 per share in 2011, on revenues of $1,313,123. Earnings before interest, taxes, depreciation and amortization (EBITDA) for the year were $1,469,614 compared to loss before interest, taxes, depreciation and amortization (LBITDA) of $2,706,821 in 2011. The company reported net production for the year of 58.4 MBOE, a two-fold increase over the 2011 total of 22.7 MBOE. The company expects to participate in a total of 27 gross wells during 2013. The plan includes 3 conventional wells targeting the Frio and Wilcox formations on the Texas Gulf Coast and 24 horizontal wells within the Mississippian Lime Play of northern Oklahoma. Management also expects to commence an additional well in the second quarter 2013, and subject to favorable results a fourth well in the second half of the year.

Doxa Energy Ltd. filed its Annual on Apr 29, 2013 for the period ending Dec 31, 2012. In this report its auditor, Smythe Ratcliffe, gave an unqualified opinion expressing doubt that the company can continue as a going concern.