Doxa Energy Ltd.
TSX VENTURE : DXA
FRANKFURT : 5D0
OTCQX : DXAEF

Doxa Energy Ltd.

March 22, 2011 09:01 ET

Doxa Reports Commencement of Production From Peeler Ranch-Eagle Ford Shale Project, Atascosa County, Texas

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 22, 2011) - Doxa Energy Ltd. (TSX VENTURE:DXA)(OTCQX:DXAEF)(FRANKFURT:5D0) ("Doxa" or the "Company") is excited to announce that it has commenced initial production with oil and gas sales from the Peeler Ranch Prospect, part of the Eagle Ford Shale Project in Atascosa County, Texas. Multi-stage hydraulic fracture stimulation operations were successfully completed earlier this month on the Peeler Ranch No. 1-H, and initial flow back operations have commenced. Approximately 1.8 million pounds of proppant were pumped during the job in 12 stages. Doxa management is encouraged by the early indications of oil and gas production, and detailed results will be reported in the near future. The Peeler Ranch No. 1-H, a horizontal Eagle Ford well operated by Dewbre Petroleum Corporation of Corpus Christi, Texas is Doxa's first well on its Qualifying Transaction (see Doxa news, May 25, 2010). The Peeler Ranch No. 1-H was drilled to a total measured depth of 13,630', with a total Eagle Ford in-zone lateral length of approximately 4,000'. All production facilities have been constructed and initial sales of oil and gas have commenced.

Subject to confirmation of commercially viable results on the Peeler Ranch No. 1-H, the Company anticipates that 10-14 gross wells could ultimately be drilled on this 2,005 acre project, under which it owns a 20% working interest along with a 15% net revenue interest. Doxa notes that operators with wells immediately offsetting Doxa's Peeler Ranch Project have announced recoverable reserves in the range of 254-356 MBOE (thousand barrels of oil equivalent) per well, which is in-line with Doxa's expectations for this project.

About Doxa Energy:

Doxa Energy Ltd. is an oil and gas production/exploration company concentrating on onshore only projects primarily in the State of Texas with a mix of unconventional (including the Eagle Ford Shale) and conventional projects. Doxa is committed to becoming a leading oil and gas company, achieving superior financial and operating results while simultaneously utilizing sound business, social, environmental and safety practices. Additional information on Doxa is available on the Company's website www.doxaenergy.com.

John D. Harvison, President, Chief Executive Officer

Statements in this press release other than purely historical information, including statements relating to the Company's future plans, objectives or expected results, constitute forward-looking statements. Forward-looking statements are based on numerous assumptions and are subject to the risks and uncertainties inherent in the Company's business, including risks inherent in oil and gas exploration and development, and uncertainties in connection with anticipated commodity prices for oil and natural gas, growth of worldwide market demand, exploration capital requirements, length of asset life and availability of qualified personnel, among others As a result, actual results may vary materially from those described in the forward-looking statements.

All references in this press release to BOE are based on a 6 Mcf to 1 Bbl conversion ratio. BOE's may be misleading particularly if used in isolation. A BOE conversion of 6 Mcf to 1 Bbl is based on the energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

This new release does not constitute an offer to sell or the solicitation of an offer to buy any securities of the Company in the United States. The securities of Doxa have not been registered under the U.S. Securities Act of 1933, as amended, or any state securities laws, and may not be offered or sold in the United States or to or for the account or benefit of a U.S. person unless so registered or pursuant to an available exemption from the registration requirements of such Act or laws.

To view the photo accompanying this press release please visit the following link: http://media3.marketwire.com/docs/DoxaPeeler1-H.pdf

Neither TSX Venture Exchange nor its Regulation Services providers (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Doxa Energy Ltd.
    Scott Parsons
    Director
    604.662.3692
    or
    Doxa Energy Ltd.
    Paul McKenzie
    Director
    604.662.3692
    www.doxaenergy.com