VANCOUVER, BRITISH COLUMBIA--(Marketwired - March 18, 2016) - DXI Energy Inc. (TSX:DXI) (NYSE MKT:DXI) ("DXI Energy" or the "Company") announces today that it has released its P&NG reserves data for 2015.
Consolidated petroleum and natural gas ("P&NG") reserves in Canada and the USA were 13,992,000 BOE at December 31, 2015. Ninety-six percent (96%) of the Company's P&NG reserves at December 31, 2015 are located in the USA at the Company's "Kokopelli" project in Garfield County, Colorado.
Summary of Oil and Gas Reserves and Net Present Values of Future Net Revenue As at December 31, 2015 Forecast Prices and Costs |
|
|
Light and Medium Oil |
Natural Gas |
Natural Gas Liquids |
Total |
|
(Mbbl) |
(MMcf) |
(Mbbl) |
(Mboe) |
|
Gross |
Net |
Gross |
Net |
Gross |
Net |
Gross |
Net |
Proved Developed Producing |
|
|
|
|
|
|
|
|
|
Canada |
172 |
145 |
1,024 |
1,016 |
2 |
2 |
345 |
316 |
|
United States |
- |
- |
2,273 |
1,641 |
72 |
58 |
450 |
331 |
|
Total |
172 |
145 |
3,297 |
2,657 |
74 |
60 |
795 |
647 |
Proved Developed Non-Producing |
|
|
|
|
|
|
|
|
|
Canada |
- |
- |
324 |
307 |
1 |
1 |
55 |
52 |
|
United States |
- |
- |
668 |
461 |
33 |
27 |
144 |
103 |
|
Total |
- |
- |
992 |
768 |
34 |
28 |
199 |
155 |
Proved Undeveloped |
|
|
|
|
|
|
|
|
|
Canada |
- |
- |
- |
- |
- |
- |
- |
- |
|
United States |
- |
- |
37,504 |
25,897 |
1,861 |
1,489 |
8,111 |
5,805 |
|
Total |
- |
- |
37,504 |
25,897 |
1,861 |
1,489 |
8,111 |
5,805 |
Total Proved |
|
|
|
|
|
|
|
|
|
Canada |
172 |
145 |
1,348 |
1,323 |
3 |
3 |
400 |
368 |
|
United States |
- |
- |
40,445 |
27,999 |
1,965 |
1,573 |
8,706 |
6,239 |
|
Total |
172 |
145 |
41,793 |
29,322 |
1,968 |
1,576 |
9,106 |
6,607 |
Probable |
|
|
|
|
|
|
|
|
|
Canada |
34 |
29 |
495 |
479 |
1 |
1 |
118 |
110 |
|
United States |
- |
- |
22,045 |
15,222 |
1,094 |
875 |
4,768 |
3,412 |
|
Total |
34 |
29 |
22,540 |
15,701 |
1,095 |
876 |
4,886 |
3,522 |
Total Proved Plus Probable |
|
|
|
|
|
|
|
|
|
Canada |
206 |
174 |
1,843 |
1,802 |
4 |
4 |
518 |
478 |
|
United States |
- |
- |
62,490 |
43,221 |
3,059 |
2,448 |
13,474 |
9,651 |
|
Total |
206 |
174 |
64,333 |
45,023 |
3,063 |
2,452 |
13,992 |
10,129 |
|
|
|
|
|
|
|
|
|
Net Present Value of Future Net Revenue Discounted at (%/Year) |
|
|
|
Before Income Taxes |
|
|
After Income Taxes |
|
Unit |
Reserves Category |
0% |
5% |
10% |
15% |
20% |
|
|
0% |
5% |
10% |
15% |
20% |
|
Value |
|
(in thousands of Canadian dollars) |
|
($/BOE) |
Proved Developed |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Producing |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Canada |
2,534 |
2,629 |
2,654 |
2,640 |
2,602 |
|
|
2,534 |
2,629 |
2,654 |
2,640 |
2,602 |
|
8.40 |
|
United States |
6,379 |
3,971 |
2,938 |
2,383 |
2,037 |
|
|
4,210 |
2,621 |
1,939 |
1,573 |
1,344 |
|
8.87 |
|
Total |
8,913 |
6,600 |
5,592 |
5,023 |
4,639 |
|
|
6,744 |
5,250 |
4,593 |
4,213 |
3,946 |
|
8.64 |
Proved Developed |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Producing |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Canada |
226 |
245 |
253 |
254 |
252 |
|
|
226 |
245 |
253 |
254 |
252 |
|
4.90 |
|
United States |
2,823 |
1,376 |
923 |
718 |
599 |
|
|
1,863 |
908 |
609 |
474 |
396 |
|
8.93 |
|
Total |
3,049 |
1,621 |
1,176 |
972 |
851 |
|
|
2,089 |
1,153 |
862 |
728 |
648 |
|
7.57 |
Proved Undeveloped |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Canada |
- |
- |
- |
- |
- |
|
|
- |
- |
- |
- |
- |
|
- |
|
United States |
87,984 |
31,220 |
10,336 |
395 |
(5,197 |
) |
|
60,789 |
22,043 |
7,339 |
107 |
(4,079 |
) |
1.78 |
|
Total |
87,984 |
31,220 |
10,336 |
395 |
(5,197 |
) |
|
60,789 |
22,043 |
7,339 |
107 |
(4,079 |
) |
1.78 |
Total Proved |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Canada |
2,760 |
2,874 |
2,907 |
2,894 |
2,854 |
|
|
2,760 |
2,874 |
2,907 |
2,894 |
2,854 |
|
7.91 |
|
United States |
97,186 |
36,567 |
14,197 |
3,496 |
(2,561 |
) |
|
66,862 |
25,572 |
9,887 |
2,154 |
(2,340 |
) |
2.28 |
|
Total |
99,946 |
39,441 |
17,104 |
6,390 |
294 |
|
|
69,622 |
28,446 |
12,794 |
5,048 |
514 |
|
2.59 |
Probable |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Canada |
1,327 |
1,218 |
1,115 |
1,021 |
939 |
|
|
1,327 |
1,218 |
1,115 |
1,021 |
939 |
|
10.17 |
|
United States |
61,610 |
22,726 |
9,403 |
3,565 |
603 |
|
|
42,261 |
15,799 |
6,509 |
2,347 |
200 |
|
2.76 |
|
Total |
62,937 |
23,944 |
10,518 |
4,586 |
1,542 |
|
|
43,588 |
17,017 |
7,624 |
3,368 |
1,139 |
|
2.99 |
Total Proved Plus |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Probable |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Canada |
4,087 |
4,092 |
4,022 |
3,915 |
3,793 |
|
|
4,087 |
4,092 |
4,022 |
3,915 |
3,793 |
|
8.43 |
|
United States |
158,795 |
59,293 |
23,600 |
7,061 |
(1,958 |
) |
|
109,123 |
41,371 |
16,397 |
4,500 |
(2,140 |
) |
2.45 |
|
Total |
162,882 |
63,385 |
27,622 |
10,976 |
1,835 |
|
|
113,210 |
45,463 |
20,419 |
8,415 |
1,653 |
|
2.73 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Future Net Revenue (Undiscounted) as at December 31, 2015 Forecast Prices and Costs |
(in thousands of Canadian dollars) |
|
|
Revenue |
Royalties |
Operating
Costs |
Development
Costs |
Abandonment
Costs |
Future Net
Revenue
Before
Income
Taxes |
Income
Taxes |
Future Net
Revenue After
Income Taxes |
Reserves Category |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
Proved Reserves |
|
|
|
|
|
|
|
|
|
Canada |
13,326 |
1,545 |
8,042 |
15 |
963 |
2,760 |
- |
2,760 |
|
United States |
356,027 |
71,134 |
132,589 |
54,391 |
727 |
97,185 |
30,323 |
66,862 |
|
Total |
369,353 |
72,679 |
140,631 |
54,406 |
1,690 |
99,945 |
30,323 |
69,622 |
Proved plus Probable |
|
|
|
|
|
|
|
|
Reserves |
|
|
|
|
|
|
|
|
|
Canada |
17,331 |
1,937 |
10,313 |
15 |
978 |
4,087 |
- |
4,087 |
|
United States |
564,966 |
112,922 |
205,761 |
86,362 |
1,127 |
158,795 |
49,672 |
109,123 |
|
Total |
582,297 |
114,859 |
216,074 |
86,377 |
2,105 |
162,882 |
49,672 |
113,210 |
|
|
|
|
|
|
|
|
|
|
|
Summary of Pricing and Inflation Rate Assumptions Forecast Prices and Costs |
Canada - Crude Oil and Natural Gas Liquids Price Forecast |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank of
Canada
Average
Noon |
NYMEX
WTI
Near
Month
Futures
Contract
Crude
Oil
at
Cushing
Oklahoma |
ICE
BRENT
Near
Month
Futures
Contract
Crude
Oil
FOB
North
Sea |
Light,
Sweet
Crude
Oil
at
Edmonton |
Bow
River
Crude
Oil
Stream
Quality
at
Hardisty |
WCS
Crude
Oil
Stream
Quality
at
Hardisty |
Heavy
Crude
Oil
Proxy
at
Hardisty |
Light
Crude
Oil
at
Cromer |
Medium
Crude
Oil
at
Cromer |
Alberta Natural Gas Liquids (Then Current Dollars) |
Year |
Inflation
% |
Exchange
Rate
$US/$Cdn |
Constant
2016$
$US/bbl |
Then
Current
$US/bbl |
Then
Current
$US/bbl |
Then
Current
$Cdn/bbl |
Then
Current
$Cdn/bbl |
Then
Current
$Cdn/bbl |
Then
Current
$Cdn/bbl |
Then
Current
$Cdn/bbl |
Then
Current
$Cdn/bbl |
Spec
Ethane
$Cdn/bbl |
Edmonton
Propane
$Cdn/bbl |
Edmonton
Butane
$Cdn/bbl |
Edmonton
Pentanes
Plus
$Cdn/bbl |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2016 |
2.0 |
0.725 |
44.00 |
44.00 |
45.00 |
55.86 |
42.82 |
42.26 |
35.70 |
53.59 |
50.80 |
8.82 |
9.58 |
41.90 |
60.79 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2017 |
2.0 |
0.750 |
50.98 |
52.00 |
54.00 |
64.00 |
51.84 |
51.20 |
45.02 |
62.72 |
59.52 |
10.55 |
16.00 |
48.00 |
68.48 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2018 |
2.0 |
0.775 |
55.75 |
58.00 |
61.00 |
68.39 |
56.08 |
55.39 |
49.06 |
67.02 |
63.60 |
11.19 |
20.52 |
51.29 |
73.17 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2019 |
2.0 |
0.800 |
60.31 |
64.00 |
67.00 |
73.75 |
61.58 |
60.84 |
54.42 |
72.28 |
68.59 |
11.81 |
25.81 |
55.31 |
78.91 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2020 |
2.0 |
0.825 |
64.67 |
70.00 |
73.00 |
78.79 |
66.97 |
66.18 |
59.75 |
77.21 |
73.27 |
12.44 |
27.58 |
59.09 |
84.30 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2021 |
2.0 |
0.850 |
67.93 |
75.00 |
78.00 |
82.35 |
70.82 |
70.00 |
63.56 |
80.71 |
76.59 |
12.74 |
28.82 |
61.76 |
88.12 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2022 |
2.0 |
0.850 |
71.04 |
80.00 |
83.00 |
88.24 |
76.76 |
75.88 |
69.32 |
86.47 |
82.06 |
13.43 |
30.88 |
66.18 |
94.41 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023 |
2.0 |
0.850 |
74.00 |
85.00 |
88.00 |
94.12 |
82.35 |
81.41 |
74.62 |
92.24 |
87.53 |
14.12 |
32.94 |
70.59 |
100.71 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2024 |
2.0 |
0.850 |
75.00 |
87.88 |
91.39 |
96.48 |
85.87 |
84.90 |
78.40 |
94.55 |
89.73 |
14.81 |
33.77 |
72.36 |
103.24 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2025 |
2.0 |
0.850 |
75.00 |
89.63 |
93.22 |
98.41 |
87.59 |
86.60 |
79.99 |
96.44 |
91.52 |
15.15 |
34.44 |
73.81 |
105.30 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2026+ |
2.0 |
0.850 |
75.00 |
+2.0%/yr |
+2.0%/yr |
+2.0%/yr |
+2.0%/yr |
+2.0%/yr |
+2.0%/yr |
+2.0%/yr |
+2.0%/yr |
Escalate at 2% per year |
|
Canada - Natural Gas and Sulphur Price Forecast |
|
|
|
|
|
|
|
|
|
|
|
NYMEX
Near Month
Contract |
Midwest
Price @
Chicago |
AECO/NIT
Spot |
Alberta Plant Gate |
Saskatchewan Plant Gate |
British Columbia |
|
|
|
|
|
|
Year |
Then
Current
$US/mmbtu |
Then
Current
$US/mmbtu |
Then
Current
$Cdn/mmbtu |
Spot
Constant
2016 $
$/mmbtu |
Spot
Then
Current
$/mmbtu |
ARP
$/mmbtu |
Alliance
$/mmbtu |
Sask
Energy
$/mmbtu |
Spot
$/mmbtu |
Sumas
Spot
$US/mmbtu |
Westcoast
Station
2
$/mmbtu |
Spot
Plant
Gate
$/mmbtu |
Sulphur
FOB
Vancouver
$US/LT |
Alberta
Sulphur
at
Plant
Gate
$Cdn/LT |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2016 |
2.60 |
2.70 |
2.76 |
2.53 |
2.53 |
2.53 |
2.23 |
2.63 |
2.67 |
2.40 |
2.01 |
1.83 |
125.00 |
122.41 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2017 |
3.10 |
3.20 |
3.27 |
2.97 |
3.03 |
3.03 |
2.72 |
3.13 |
3.18 |
2.90 |
2.77 |
2.58 |
125.00 |
116.67 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2018 |
3.30 |
3.40 |
3.45 |
3.09 |
3.21 |
3.21 |
2.87 |
3.31 |
3.36 |
3.10 |
3.05 |
2.86 |
127.50 |
114.52 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2019 |
3.50 |
3.60 |
3.63 |
3.20 |
3.39 |
3.39 |
3.02 |
3.49 |
3.54 |
3.30 |
3.38 |
3.19 |
130.05 |
112.56 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2020 |
3.70 |
3.80 |
3.81 |
3.30 |
3.57 |
3.57 |
3.15 |
3.67 |
3.72 |
3.50 |
3.56 |
3.37 |
132.65 |
110.79 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2021 |
3.90 |
4.00 |
3.90 |
3.32 |
3.66 |
3.66 |
3.29 |
3.76 |
3.81 |
3.70 |
3.65 |
3.46 |
135.30 |
109.18 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2022 |
4.10 |
4.20 |
4.10 |
3.43 |
3.86 |
3.86 |
3.51 |
3.96 |
4.01 |
3.90 |
3.85 |
3.66 |
138.01 |
112.36 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023 |
4.30 |
4.40 |
4.30 |
3.53 |
4.06 |
4.06 |
3.74 |
4.16 |
4.21 |
4.10 |
4.05 |
3.86 |
140.77 |
115.61 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2024 |
4.50 |
4.60 |
4.50 |
3.63 |
4.26 |
4.26 |
3.96 |
4.35 |
4.41 |
4.30 |
4.25 |
4.06 |
143.59 |
118.93 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2025 |
4.60 |
4.70 |
4.60 |
3.64 |
4.35 |
4.35 |
4.08 |
4.45 |
4.51 |
4.40 |
4.35 |
4.16 |
146.46 |
122.31 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2026+ |
+2.0%/yr |
+2.0%/yr |
+2.0%/yr |
3.64 |
+2.0%/yr |
+2.0%/yr |
+2.0%/yr |
+2.0%/yr |
+2.0%/yr |
+2.0%/yr |
+2.0%/yr |
+2.0%/yr |
+2.0%/yr |
+2.0%/yr |
|
United States - Oil, Natural Gas Liquids and Natural Gas Price Forecast |
|
Year |
Oil
$US/bbl |
Natural Gas
Liquids
$US/bbl |
Natural Gas
$US/bbl |
|
|
|
|
2016 |
35.06 |
22.51 |
2.69 |
|
|
|
|
2017 |
41.43 |
26.84 |
3.21 |
|
|
|
|
2018 |
46.21 |
28.57 |
3.41 |
|
|
|
|
2019 |
51.00 |
30.30 |
3.62 |
|
|
|
|
2020 |
55.78 |
32.03 |
3.83 |
|
|
|
|
2021 |
59.76 |
33.77 |
4.03 |
|
|
|
|
2022 |
63.74 |
35.50 |
4.24 |
|
|
|
|
2023 |
67.73 |
37.23 |
4.45 |
|
|
|
|
2024 |
70.02 |
38.96 |
4.65 |
|
|
|
|
2025 |
71.42 |
39.83 |
4.76 |
|
|
|
|
2026+ |
+2%/yr |
+2%/yr |
+2%/yr |
Pursuant to NYSE MKT Company Guide Section 610(b) the Company discloses that its audited consolidated financial statements for the fiscal year ended December 31, 2015, included in the Company's Form 6-K, which was filed on March 10, 2016 with the Securities and Exchange Commission, contained an audit opinion from its independent registered public accounting firm that included a going concern qualification.
About DXI ENERGY INC.
DXI Energy Inc. is an upstream oil and natural gas exploration and production company operating projects in Colorado's Piceance Basin (39,352 net acres) and the Peace River Arch region in British Columbia (14,444 net acres). DXI Energy Inc. maintains offices in Calgary and Vancouver, Canada. The company is publicly traded on the New York Stock Exchange (NYSE MKT:DXI) and Toronto Stock Exchange (DXI.TO).
Statements Regarding Forward-Looking Information: This news release contains statements about oil and gas production and operating activities that may constitute "forward-looking statements" or "forward- looking information" within the meaning of applicable securities legislation as they involve the implied assessment that the resources described can be profitably produced in the future, based on certain estimates and assumptions. Forward-looking statements are based on current expectations, estimates and projections that involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those anticipated by DXI Energy and described in the forward-looking statements. These risks, uncertainties and other factors include, but are not limited to, adverse general economic conditions, operating hazards, drilling risks, inherent uncertainties in interpreting engineering and geologic data, competition, reduced availability of drilling and other well services, fluctuations in oil and gas prices and prices for drilling and other well services, government regulation and foreign political risks, fluctuations in the exchange rate between Canadian and US dollars and other currencies, as well as other risks commonly associated with the exploration and development of oil and gas properties. Additional information on these and other factors, which could affect DXI Energy Inc.'s operations or financial results, are included in DXI Energy Inc.'s reports on file with Canadian and United States securities regulatory authorities. Other risks include the Company's ongoing review by NYSE MKT ("the Exchange") to ensure the Company continues to regain compliance with Section 1003(a)(iv) of the Company Guide which addresses a Company's ability to operate as a going concern. We assume no obligation to update forward-looking statements should circumstances or management's estimates or opinions change unless otherwise required under securities law.
The TSX does not accept responsibility for the adequacy or accuracy of this news release.
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