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 well.
- 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 per boe.
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 with IFRS.
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.
© 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