DXI Capital Corp V.DXI.H

Is PD on th lease for the 1 st of 4 wells 161% IRR

[ROUGETRADER719]

Woodrush project -- timeline

A permit application for the Woodrush drilling program and the related pad and road construction was filed with the appropriate regulatory authorities on Jan. 16, 2018. The application requires a minimum 15-day turnaround. Accordingly, the company expects to receive its licence in the very near term. In preparation for the first well spud, anticipated in mid-February, 2018, DXI has completed the following key preparation steps:

1. The final prestack migrated 3-D seismic data interpretation has slightly redefined and enhanced the multiple drill targets available. The optimal bottom-hole locations of the first two wells have been chosen, resulting in the creation of an economic, multipod drill plan from a single new surface pad. A third highly attractive bottom-hole location is also available without surveying, licensing and building a new pad.
2. An AFE (authorization for expenditure) has been finalized.
3. The road contract for the pad has been bid out and secured with construction to be under way as part of the company's licence application.
4. A drill contract has been signed with Precision Drilling. The rig is hot and ready to move when the company is.
5. This phase of the Woodrush drilling program has considerable optionality for expansion prior to seasonal breakup as results define.