DXI Energy hits gas at exploration well at Woodrush field, BC

DXI Energy Inc (TSE:DXI) (OTCQB:DXIEF) said it had hit gas in its b-089-E/94-H-1 exploration well at its Woodrush field in British Columbia but no conventional oil reservoir.

The well reached its target depth in what’s called the ‘Halfway’ play and logs showed around 19 feet of high quality Gething gas to complement the firm’s growing Gething natural gas reserves at Woodrush.

DXI has now run production casing at the well, mainly to allow for future production of the gas when prices improve.

DEEP DIVE: DXI Energy sees huge potential ahead as it gets green light for Woodrush exploration well, BC

At least one and possibly two additional gas locations were delineated by the well and DXI says it now plans to explore the economics of horizontally drilling and fracking this “unconventional” Halfway interval.

President at DXI, Sean Sullivan noted the firm’s disappointment in the result but added the company would continue to implement its expanding operational plan at Woodrush to “create value for all our stakeholders”.

“We requested the board in early December, 2018 to appoint me as President and CEO,” he said, adding that a number of initiatives to create value for all shareholders were implemented and had now all been achieved.

The key objectives were to:

•  reduce cash operating expenses and interest payments to the bare minimum;

•  to source capital for the company’s exploration efforts;

•  to add Mr. Ed Aabak of Denver, Colorado, to complement Mr. Stan Page of Dallas, Texas, both seasoned oil and gas industry professionals, to the board;

• to work cooperatively with the three First Nations impacted by our operations at Woodrush;

• to eliminate in perpetuity cash compensation for the chairman and president and CEO;

• to obtain required drilling license for b-089-E/94-H-1 on a timely basis; and

• .to eliminate, in full, the $6,980,000 “Financial Contract Liability” on the  balance sheet during 2018.

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Story by ProactiveInvestors