CALGARY, April 10, 2014 /CNW/ - Dixie Energy Trust ("Dixie") is pleased to announce management and board changes and provides an operational update.
Executive Leadership Changes
The Board has appointed Mr. Ian Atkinson as President and Chief Executive Officer of Dixie Energy Ltd., the administrator of Dixie (the "Administrator"). Mr. Atkinson has been a board member of the Administrator since January 2013 and Chairman since April 2013. Mr. Atkinson brings to Dixie over 20 years of engineering, operational and management experience in the oil and gas industry. Mr. David Anderson has resigned as President of the Administrator and has been appointed the new Chairman of the board to assist Mr. Atkinson and the management team.
Dixie is also pleased to announce the expansion of its technical and leadership team with the appointment of Ms. Erin Buschert as VP Land; Mr. Marc Houle as VP Exploration; Mr. Jim McFadyen as VP Operations; Mr. Gary McMurren as VP Engineering; and Ms. Karen Tanaka as VP Corporate Affairs. The team has over 75 years of combined experience in all aspects of the oil and gas industry and a proven track record of operational and execution excellence.
Board of Directors Changes
Dixie announces that Mr. Rick Fletcher, a member of the Administrator's and Dixie Energy Holdings (Canada) Ltd.'s board of directors, and chief executive officer of Dixie Energy Holdings (US), Ltd., has resigned all of these positions to pursue other personal and professional opportunities. On behalf of both employees and unitholders, the Board would like to thank Rick for his support. We wish him the very best in the future. Dixie's new management team and board will assume Rick's responsibilities.
Operations Update and Asset Overview
Based on field estimates, Dixie's current production is approximately 110 boepd (net) (90% oil). Dixie's production is generated from the Maple Branch wells in Mississippi and the Brooklyn and Little Cedar Creek wells in Alabama.
In the second half of 2013, Dixie and its partners drilled 3 (1.2 net) oil wells (Holliman 7-12 No.1, Holliman 17-6 No. 1 and Holliman 18-5 No. 1) in Maple Branch. The Holliman 7-12 No. 1 and Holliman 17-6 No. 1 were completed and came on production in the fourth quarter and Dixie intends to perform fracture stimulation on the Holliman 18-5 No. 1 well early in the third quarter of 2014.
During the fourth quarter of 2013 the Maple Branch average daily oil production was 44 bopd (net) and average daily natural gas production, which is currently being flared, was 175 mcfpd (net). Dixie is evaluating alternatives to tie the gas into existing infrastructure. Production has remained consistent in the first quarter of 2013.
During the fourth quarter of 2013, Dixie's production from the Brooklyn field was 46 boepd (net) (82% oil). In late March, the Amos 36-3 well was acidized with positive results and it is currently restricted to 400 bopd, which is the maximum rate limitation for Alabama. In the first quarter of 2014, Dixie participated in the drilling and completion of the Bradley 25-5 well (3% working interest), in the Little Cedar Creek field; this well came on production in mid-March. Overall production from the Smackover formation has remained consistent in the first quarter of 2013.
Further information in respect of Dixie can be accessed via the SEDAR website at www.sedar.com.
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.
Oil and Gas Disclaimers
"boepd" means barrels of oil equivalent per day. "bopd" means barrels of oil 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. 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.
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: Dixie's current production estimates; and the anticipated timing of fracture stimulation on the Holliman 18-5 No. 1 well.
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 resources potential of the Maple Branch Prospect; the timely receipt of any required third party and regulatory approvals; the ability of Dixie to identify viable options for the gas tie-in; 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; field production rates; the regulatory framework regarding royalties, taxes and environmental matters in the jurisdictions in which Dixie operates; and the ability of Dixie to successfully market its oil and natural gas products. 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 ability of management to execute its business plan; general economic and business conditions; the risk of instability affecting the jurisdictions in which Dixie operates; 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; the ability of Dixie to add production and reserves through acquisition, development and exploration activities; Dixie's ability to enter into or renew leases; potential delays or changes in plans with respect to exploration or development projects or capital expenditures; risks associated with tying the gas into existing infrastructure; fluctuations in oil and natural gas prices, foreign currency exchange rates and interest rates; risks inherent in Dixie's marketing operations, including credit risk; health, safety and environmental risks; risks associated with existing and potential future law suits and regulatory actions against Dixie; and uncertainties as to the availability and cost of financing. 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.
© 2014 Dixie Energy Trust All rights reserved.
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SOURCE: Dixie Energy Trust
For further information:
Ian K. Atkinson, President & CEO or
David G. Anderson, Chairman
T: 403 232 1010