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

Doxa Energy Ltd.

March 07, 2011 09:02 ET

Doxa Reports New Acquisitions and Updates Operations

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 7, 2011) - Doxa Energy Ltd. (TSX VENTURE:DXA)(OTCQX:DXA)(FRANKFURT:5D0) ("Doxa" or the "Company") is pleased to report that it has agreed to participate in two (2) new Texas Gulf Coast projects, and further provides the following operational updates:

Sartain Assets Prospect

Doxa disclosed that it has completed the acquisition of a 12.5% participating interest in roughly 1,000 acres comprising the Sartain Assets Ltd. Oil Prospect in Frio County, Texas. The initial well on the Sartain Assets Prospect is also a re-entry of an existing well, and is targeting the Pearsall Austin Chalk formation at a true vertical depth of approximately 6,000'. Drilling operations on the well, which includes a planned 4,200' horizontal lateral through the fractured Austin Chalk formation, has commenced. There are numerous prolific oil wells throughout the area surrounding the Sartain Assets Prospect, which is operated by AWP Operating Company of San Antonio, Texas.

To view Figure 1, "Drilling at Sartain Assets Unit No. 1", please visit the following link: http://media3.marketwire.com/docs/dxa-sartain.pdf.

Emshoff Prospect 

Doxa reports that it has acquired a 15% working interest under the Emshoff Prospect in Wharton County, Texas. This project consists of a 640 acre unit upon which Dynamic Production, Inc., the operating partner, has recently commenced the drilling of a 16,000' test well. The Emshoff Unit No. 1ST is a re-entry and sidetrack of an existing well, and will be targeting middle Wilcox gas sands which are commercially productive on trend approximately 2.5 miles to the north. The Company estimates approximately twenty-five (25) days of drilling will be required to reach the objective depth, after which logging and testing operations will be undertaken. 

Sarco Creek 3D Update

As previously reported (see Doxa news, October 7, 2010 & December 13, 2010), seismic data acquisition on the Sarco Creek 3D was commenced in December, 2010 and after several weather related delays, the Company now reports that this phase of the project is nearly 80% complete. Provided no additional adverse weather is encountered, field operations should be completed within the next few days. Processing of the field data has commenced and is expected to be complete by the end of March, 2011. Evaluation of the processed data will follow in an effort to identify and qualify drilling prospects. The data will initially be evaluated for oil and gas development opportunities in the Miocene and Frio formations above 5,000'.

Peeler Ranch No. 1-H Update

Multi-stage fracing operations have commenced on the Peeler Ranch No. 1-H in Atascosa County, Texas. The Peeler Ranch No. 1-H is the initial well on the Peeler Ranch Prospect, which was Doxa's Qualifying Transaction (see Doxa news, May 25, 2010). The Company plans to release details once these operations have been completed and the results are available.

Martin-State Gas Unit No. 1 Update

Doxa is pleased to report that drilling operations on the previously disclosed Martin-State Gas Unit No. 1 in McMullen County, Texas have been successfully completed and based on the results of log evaluation, production casing has been run and cemented. Completion operations will be undertaken in the near future with an anticipated Doxa news release to follow.

Davis-McCrary No. 1 Update

Due to unexpectedly high rate of water production associated with the expected oil production, completion operations on the Davis-McCrary No. 1 well, an Edwards formation test in Atascosa County have been suspended. The results of this initial completion attempt are being analyzed by the Operator, and the Company is anticipating a recommendation regarding the potential of future Davis-McCrary operations.

About Doxa Energy:

Doxa Energy Ltd. is an oil & 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 & 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 at 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.

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.

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