Dixie Energy Trust Releases First Quarter 2013 Financial Results

CALGARY, May 30, 2013 /CNW/ - Dixie Energy Trust ("Dixie" or the "Trust") is pleased to report its financial results for the quarter ended March 31, 2013. Dixie's unaudited interim condensed consolidated financial statements for the three month period ended March 31, 2013 and related management's discussion and analysis ("MD & A") have been filed with the applicable Canadian securities regulators and are available on the Trust's website at DixieEnergyTrust.com and on SEDAR at www.sedar.com.

Summary of First Quarter Financial Results

For the three-month period ended March 31, 2013, the Trust had oil and natural gas revenues, net of royalties of $145,258 and a net loss of $1,037,988 and a basic and diluted net loss per trust unit of $0.06. Diluted loss per trust unit was equal to basic loss per trust unit as there were no "in-the-money" dilutive instruments outstanding as of March 31, 2013. The Trust's total comprehensive loss for the period, which included a foreign currency translation gain, was $1,032,296. The Trust declared no distributions during the period.

As of March 31, 2013 the cash position of the Trust was $3,186,215 with working capital of $3,742,323.

Highlights for Q1 2013

  • On January 15, 2013 Dixie paid US$750,000 to purchase a 5% working interest in the Godwin 31-3 well in Brooklyn Field, Conecuh County, Alabama. The Godwin 31-3 well has produced an average of 336 barrels of oil equivalent per day (boepd) since it commenced production in April 2011 and current average daily production is approximately 245 boepd (12 boepd net) (90% oil).

  • On February 5, 2013 the Holliman 7-13H No.1 well in the Maple Branch prospect targeting the Lewis formation was completed and after testing, swabbing, and pump installation the well was brought on production on March 28, 2013. Average production from March 28 - May 26, 2013 was approximately 184 boepd (28 boepd net) (98% oil). Currently, all natural gas production is being flared. Dixie has a 15% working interest in the Holliman 7-13H No.1 well. Readers are cautioned that initial production rates are not necessarily indicative of long-term performance of the relevant well or fields or of ultimate recovery of hydrocarbons. See "Oil and Gas Disclaimers" below.

  • On February 6, 2013 the Holliman 7-13H No.2 well in the Maple Branch prospect targeting the Sanders formation was completed and after testing, swabbing, and pump installation the well was brought on production on March 22, 2013. Average production from March 22 - May 26, 2013 was approximately 342 boepd (68 boepd net) (77% oil). Currently, all natural gas production is being flared.  Dixie has a 20% working interest in the Holliman 7-13H No.2 well. Readers are cautioned that initial production rates are not necessarily indicative of long-term performance of the relevant well or fields or of ultimate recovery of hydrocarbons. See "Oil and Gas Disclaimers" below.

  • Management is encouraged by the results of these first two wells drilled in the Maple Branch prospect and believes that ongoing well optimization efforts and refined drilling techniques have the potential to provide improved results as Dixie continues drilling in the Maple Branch prospect. As of the date of this MD&A Dixie has a 10% working interest in approximately 15,100 acres in the Maple Branch prospect.

  • On February 28, 2013 the Trust completed its acquisition of VisionSky Corp. ("VisionSky") by way of a "Plan of Arrangement".

About Dixie Energy Trust

Dixie is an energy trust created to provide investors with an oil and gas exploration focused investment. The strategy of Dixie is to acquire, exploit and develop, indirectly through its subsidiaries, long-life crude oil and gas prospects and reserves in the United States gulf coast states, primarily in Mississippi and Alabama. Additional information is available on DixieEnergyTrust.com.

Forward Looking Statement Disclaimer

Certain statements included in this news release constitute forward looking statements or forward looking information under applicable securities legislation. Such forward looking statements or information are provided for the purpose of providing information about management's current expectations and plans relating to the future. Readers are cautioned that reliance on such information may not be appropriate for other purposes. Forward looking statements or information typically contain statements with words such as "anticipate", "believe", "expect", "plan", "intend", "estimate", "propose", "project" or similar words suggesting future outcomes or statements regarding an outlook. Forward looking statements or information in this news release include, but are not limited to, management's assessment that future well optimization efforts and refined drilling techniques may provide incrementally better results on future wells drilled at Maple Branch.

Forward looking statements or information are based on a number of factors and assumptions which have been used to develop such statements and information but which may prove to be incorrect. Although Dixie believes that the expectations reflected in such forward looking statements or information are reasonable, undue reliance should not be placed on forward looking statements because Dixie can give no assurance that such expectations will prove to be correct. In addition to other factors and assumptions which may be identified in this news release, assumptions have been made regarding, among other things: the ability of Dixie to obtain qualified staff, equipment and services in a timely and cost efficient manner; the ability of the operator of the projects which Dixie has an interest in to operate the field in a safe, efficient and effective manner; the effects of well optimization efforts and refined drilling techniques on future wells; and the manner of implementation of well optimization efforts and refined drilling techniques. Readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions which have been used.

Forward looking statements or information are based on current expectations, estimates and projections that involve a number of risks and uncertainties which could cause actual results to differ materially from those anticipated by Dixie and described in the forward looking statements or information. These risks and uncertainties which may cause actual results to differ materially from the forward looking statements or information include, among other things: the risks of the oil and natural gas industry, such as operational risks in exploring for, developing and producing crude oil and natural gas and market demand; risks and uncertainties involving geology of oil and natural gas deposits; and the risk that new well optimization efforts and refined drilling techniques will not result in improved drilling results and could result in adverse results. Readers are cautioned that the foregoing list is not exhaustive of all possible risks and uncertainties. The forward looking statements or information contained in this news release are made as of the date hereof and Dixie undertakes no obligation to update publicly or revise any forward looking statements or information, whether as a result of new information, future events or otherwise unless required by applicable securities laws. The forward looking statements or information contained in this news release are expressly qualified by this cautionary statement.

Oil and Gas Disclaimers

"boepd" means barrels of oil equivalent per day.

Boes may be misleading, particularly if used in isolation. A boe conversion ratio of 6 mcf:1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. As the value ratio between natural gas and crude oil based on the current prices of natural gas and crude oil is significantly different from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value.

Any references in this news release to initial, early and/or test or production/performance rates are useful in confirming the presence of hydrocarbons, however, such rates are not determinative of the rates at which such wells will continue production and decline thereafter. Additionally, such rates may also include recovered "load oil" fluids used in well completion stimulation. While encouraging, readers are cautioned not to place reliance on such rates in calculating the aggregate production for Dixie. The initial production rate may be estimated based on other third party estimates or limited data available at this time. In all cases in this news release initial production or test are not necessarily indicative of long-term performance of the relevant well or fields or of ultimate recovery of hydrocarbons.

© 2013 Dixie Energy Trust
All rights reserved.

All other trademarks are the property of their respective owners


SOURCE: Dixie Energy Trust

For further information:

David G. Anderson
T: 403 232 1010

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