CALGARY, May 29, 2014 /CNW/ - Dixie Energy Trust ("Dixie" or the "Trust") is pleased to report its financial results for the quarter ended
March 31, 2014. Dixie's unaudited interim condensed consolidated
financial statements for the three month period ended March 31, 2014
and related management's discussion and analysis ("MD&A") have been filed with the applicable 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 quarter ended March 31, 2014, Dixie had oil and natural gas
revenues, net of royalties of $653,221 a net loss of $417,566 and a
basic and diluted net loss per trust unit of $0.01. The Trust's total
comprehensive income for the period, which included a foreign currency
translation gain, was $525,325. The Trust declared no distributions
during the period.
As of March 31, 2014 the cash position of the Trust was $783,424 with
working capital of $231,676.
First Quarter 2014 Highlights
Acquired additional oil and gas leases totaling 978 gross acres (391
net) of undeveloped land in the Maple Branch prospect in Lowndes
County. Dixie holds a 40% working interest in 15,278 gross acres (6,111
net) of undeveloped land in the Maple Branch prospect.
Dixie participated in the drilling of the Bradley 25-5 well, in the
Brooklyn field, Conecuh County Alabama. The well has averaged
approximately 325 bopd (10 bopd net) since it commenced production on
March 14, 2014. Dixie has a 3% working interest in the Bradley 25-5
The Forest Homes No.2 well, in the White Castle prospect, Iberville
Parish, Louisiana was completed and the well has averaged approximately
54 bopd (5 bopd net) since it commenced production on March 7, 2014.
Dixie has an 8.7% working interest in the Forest Homes No.2 well.
During the first quarter of 2013, Dixie's average oil and gas production
was 104 boepd (92% oil) and its netback was US$44.04 per boe. Ongoing
efforts by the operator to optimize production from the wells in the
Maple Branch prospect during the quarter resulted in increased
operating expenses, reduced production days and a decrease in netback.
During the first quarter Dixie's average oil sale price was US$91.36
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.
Note regarding non-IFRS financial measures
This press release makes reference to the term "netback" which is a
non-IFRS financial measure that does not have any standardized meaning
prescribed by IFRS and may not be comparable to similar measures
presented by other issuers. Management believes that "netback" provides
useful information to investors and management since such measures
reflect the quality of production and the level of profitability of
Dixie's oil and gas operations. Netback is calculated by subtracting
royalties, production taxes, transportation and operating costs from
gross revenues. Other financial data has been prepared in accordance
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
© 2014 Dixie Energy Trust
All rights reserved
All other trademarks are the property of their respective owners
SOURCE: Dixie Energy Trust
For further information:
Ian Atkinson, President & CEO or
David Anderson, Chairman
T: 403 232 1010