DXI DISCUSSES IMPROVED OPERATIONAL ECONOMICS AT KOKOPELLI KOKOPELLI
The implementation of operational enhancements by the new project operator is designed to improve production efficiency at DXI Energy Inc.'s Kokopelli gas/liquids field.
By leveraging existing facilities nearby, owned by operator TEP of Houston, Tex., and spreading the Kokopelli operational costs over a large number of production wells, the operator is significantly reducing or eliminating key current expenses associated with Kokopelli such as labour, supervision and chemical costs. As a result, DXI expects to experience a net revenue improvement of approximately 100 per cent for its current United States production profile.
Additionally, it should be noted that Nymex gas price has risen in recent weeks to approximately $3.25 (U.S.) per mmcf (million cubic meet), a 20-per-cent-plus improvement over the first half of 2018, proceeds of which should also be noticeable in monthly net revenues.
DXI Energy, through its U.S. subsidiary, maintains an ownership position of 25-per-cent West Intermediate in this 2,200-acre HBP property. The Kokopelli project hosts 12 production wells, including a 12,000-foot Mancos discovery, a state-of-the-art PWD facility and an inventory of over 250 undrilled locations to access the Williams Fork and/or Mancos, the two primary producing hydrocarbon horizons of this basin.