VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 03/18/16 -- 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
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Light and Natural Gas
Medium Oil Natural Gas Liquids Total
(Mbbl) (MMcf) (Mbbl) (Mboe)
Gross Net Gross Net Gross Net Gross Net
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Proved Developed
Producing
Canada 172 145 1,024 1,016 2 2 345 316
United States - - 2,273 1,641 72 58 450 331
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Total 172 145 3,297 2,657 74 60 795 647
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Proved Developed
Non-Producing
Canada - - 324 307 1 1 55 52
United States - - 668 461 33 27 144 103
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Total - - 992 768 34 28 199 155
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Proved Undeveloped
Canada - - - - - - - -
United States - - 37,504 25,897 1,861 1,489 8,111 5,805
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Total - - 37,504 25,897 1,861 1,489 8,111 5,805
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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
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Total 172 145 41,793 29,322 1,968 1,576 9,106 6,607
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Probable
Canada 34 29 495 479 1 1 118 110
United States - - 22,045 15,222 1,094 875 4,768 3,412
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Total 34 29 22,540 15,701 1,095 876 4,886 3,522
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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
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Total 206 174 64,333 45,023 3,063 2,452 13,992 10,129
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Net Present Value of Future Net Revenue Discounted at
(%/Year)
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Before Income Taxes
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Reserves Category 0% 5% 10% 15% 20%
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(in thousands of Canadian dollars)
Proved Developed
Producing
Canada 2,534 2,629 2,654 2,640 2,602
United States 6,379 3,971 2,938 2,383 2,037
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Total 8,913 6,600 5,592 5,023 4,639
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Proved Developed
Non-Producing
Canada 226 245 253 254 252
United States 2,823 1,376 923 718 599
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Total 3,049 1,621 1,176 972 851
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Proved Undeveloped
Canada - - - - -
United States 87,984 31,220 10,336 395 (5,197)
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Total 87,984 31,220 10,336 395 (5,197)
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Total Proved
Canada 2,760 2,874 2,907 2,894 2,854
United States 97,186 36,567 14,197 3,496 (2,561)
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Total 99,946 39,441 17,104 6,390 294
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Probable
Canada 1,327 1,218 1,115 1,021 939
United States 61,610 22,726 9,403 3,565 603
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Total 62,937 23,944 10,518 4,586 1,542
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Total Proved Plus
Probable
Canada 4,087 4,092 4,022 3,915 3,793
United States 158,795 59,293 23,600 7,061 (1,958)
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Total 162,882 63,385 27,622 10,976 1,835
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Net Present Value of Future Net Revenue
Discounted at (%/Year)
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After Income Taxes Unit
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Reserves Category 0% 5% 10% 15% 20% Value
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(in thousands of Canadian dollars) ($/BOE)
Proved Developed
Producing
Canada 2,534 2,629 2,654 2,640 2,602 8.40
United States 4,210 2,621 1,939 1,573 1,344 8.87
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Total 6,744 5,250 4,593 4,213 3,946 8.64
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Proved Developed
Non-Producing
Canada 226 245 253 254 252 4.90
United States 1,863 908 609 474 396 8.93
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Total 2,089 1,153 862 728 648 7.57
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Proved Undeveloped
Canada - - - - - -
United States 60,789 22,043 7,339 107 (4,079) 1.78
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Total 60,789 22,043 7,339 107 (4,079) 1.78
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Total Proved
Canada 2,760 2,874 2,907 2,894 2,854 7.91
United States 66,862 25,572 9,887 2,154 (2,340) 2.28
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Total 69,622 28,446 12,794 5,048 514 2.59
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Probable
Canada 1,327 1,218 1,115 1,021 939 10.17
United States 42,261 15,799 6,509 2,347 200 2.76
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Total 43,588 17,017 7,624 3,368 1,139 2.99
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Total Proved Plus
Probable
Canada 4,087 4,092 4,022 3,915 3,793 8.43
United States 109,123 41,371 16,397 4,500 (2,140) 2.45
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Total 113,210 45,463 20,419 8,415 1,653 2.73
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Total Future Net Revenue (Undiscounted) as at December 31, 2015 Forecast
Prices and Costs
(in thousands of Canadian dollars)
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Operating Development
Revenue Royalties Costs Costs
Reserves Category $ $ $ $
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Proved Reserves
Canada 13,326 1,545 8,042 15
United States 356,027 71,134 132,589 54,391
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Total 369,353 72,679 140,631 54,406
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Proved plus Probable
Reserves
Canada 17,331 1,937 10,313 15
United States 564,966 112,922 205,761 86,362
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Total 582,297 114,859 216,074 86,377
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Total Future Net Revenue (Undiscounted) as at December 31, 2015 Forecast
Prices and Costs
(in thousands of Canadian dollars)
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Future Net
Revenue
Before Future Net
Abandonment Income Income Revenue After
Costs Taxes Taxes Income Taxes
Reserves Category $ $ $ $
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Proved Reserves
Canada 963 2,760 - 2,760
United States 727 97,185 30,323 66,862
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Total 1,690 99,945 30,323 69,622
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Proved plus Probable
Reserves
Canada 978 4,087 - 4,087
United States 1,127 158,795 49,672 109,123
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Total 2,105 162,882 49,672 113,210
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Summary of Pricing and Inflation Rate Assumptions Forecast Prices and Costs
Canada - Crude Oil and Natural Gas Liquids Price Forecast
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NYMEX ICE
WTI BRENT
Near Near
Month Month Bow
Futures Futures River WCS
Contract Contract Light, Crude Crude
Crude Crude Sweet Oil Oil
Bank of Oil Oil Crude Stream Stream
Canada at FOB Oil Quality Quality
Average Cushing North at at at
Noon Oklahoma Sea Edmonton Hardisty Hardisty
Exchange Constant Then Then Then Then Then
Inflation Rate 2016$ Current Current Current Current Current
Year % $US/$Cdn $US/bbl $US/bbl $US/bbl $Cdn/bbl $Cdn/bbl $Cdn/bbl
2016 2.0 0.725 44.00 44.00 45.00 55.86 42.82 42.26
2017 2.0 0.750 50.98 52.00 54.00 64.00 51.84 51.20
2018 2.0 0.775 55.75 58.00 61.00 68.39 56.08 55.39
2019 2.0 0.800 60.31 64.00 67.00 73.75 61.58 60.84
2020 2.0 0.825 64.67 70.00 73.00 78.79 66.97 66.18
2021 2.0 0.850 67.93 75.00 78.00 82.35 70.82 70.00
2022 2.0 0.850 71.04 80.00 83.00 88.24 76.76 75.88
2023 2.0 0.850 74.00 85.00 88.00 94.12 82.35 81.41
2024 2.0 0.850 75.00 87.88 91.39 96.48 85.87 84.90
2025 2.0 0.850 75.00 89.63 93.22 98.41 87.59 86.60
2026
+ 2.0 0.850 75.00 +2.0%/yr +2.0%/yr +2.0%/yr +2.0%/yr +2.0%/yr
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Summary of Pricing and Inflation Rate Assumptions Forecast Prices and Costs
Canada - Crude Oil and Natural Gas Liquids Price Forecast
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Heavy
Crude Light Medium
Oil Crude Crude
Proxy Oil Oil
at at at Alberta Natural Gas Liquids (Then
Hardisty Cromer Cromer Current Dollars)
Edmonton
Then Then Then Spec Edmonton Edmonton Pentanes
Current Current Current Ethane Propane Butane Plus
Year $Cdn/bbl $Cdn/bbl $Cdn/bbl $Cdn/bbl $Cdn/bbl $Cdn/bbl $Cdn/bbl
2016 35.70 53.59 50.80 8.82 9.58 41.90 60.79
2017 45.02 62.72 59.52 10.55 16.00 48.00 68.48
2018 49.06 67.02 63.60 11.19 20.52 51.29 73.17
2019 54.42 72.28 68.59 11.81 25.81 55.31 78.91
2020 59.75 77.21 73.27 12.44 27.58 59.09 84.30
2021 63.56 80.71 76.59 12.74 28.82 61.76 88.12
2022 69.32 86.47 82.06 13.43 30.88 66.18 94.41
2023 74.62 92.24 87.53 14.12 32.94 70.59 100.71
2024 78.40 94.55 89.73 14.81 33.77 72.36 103.24
2025 79.99 96.44 91.52 15.15 34.44 73.81 105.30
2026
+ +2.0%/yr +2.0%/yr +2.0%/yr Escalate at 2% per year
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Canada - Natural Gas and Sulphur Price Forecast
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NYMEX Midwest
Near Month Price @ AECO/NIT
Contract Chicago Spot Alberta Plant Gate
Spot Spot
Then Then Then Constant Then
Current Current Current 2016 $ Current ARP Alliance
Year $US/mmbtu $US/mmbtu $Cdn/mmbtu $/mmbtu $/mmbtu $/mmbtu $/mmbtu
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2016 2.60 2.70 2.76 2.53 2.53 2.53 2.23
2017 3.10 3.20 3.27 2.97 3.03 3.03 2.72
2018 3.30 3.40 3.45 3.09 3.21 3.21 2.87
2019 3.50 3.60 3.63 3.20 3.39 3.39 3.02
2020 3.70 3.80 3.81 3.30 3.57 3.57 3.15
2021 3.90 4.00 3.90 3.32 3.66 3.66 3.29
2022 4.10 4.20 4.10 3.43 3.86 3.86 3.51
2023 4.30 4.40 4.30 3.53 4.06 4.06 3.74
2024 4.50 4.60 4.50 3.63 4.26 4.26 3.96
2025 4.60 4.70 4.60 3.64 4.35 4.35 4.08
2026+ +2.0%/yr +2.0%/yr +2.0%/yr 3.64 +2.0%/yr +2.0%/yr +2.0%/yr
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Canada - Natural Gas and Sulphur Price Forecast
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Saskatchewan Plant Gate British Columbia
Alberta
Sulphur
Westcoast Spot Sulphur at
Sask Sumas Station Plant FOB Plant
Energy Spot Spot 2 Gate Vancouver Gate
Year $/mmbtu $/mmbtu $US/mmbtu $/mmbtu $/mmbtu $US/LT $Cdn/LT
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2016 2.63 2.67 2.40 2.01 1.83 125.00 122.41
2017 3.13 3.18 2.90 2.77 2.58 125.00 116.67
2018 3.31 3.36 3.10 3.05 2.86 127.50 114.52
2019 3.49 3.54 3.30 3.38 3.19 130.05 112.56
2020 3.67 3.72 3.50 3.56 3.37 132.65 110.79
2021 3.76 3.81 3.70 3.65 3.46 135.30 109.18
2022 3.96 4.01 3.90 3.85 3.66 138.01 112.36
2023 4.16 4.21 4.10 4.05 3.86 140.77 115.61
2024 4.35 4.41 4.30 4.25 4.06 143.59 118.93
2025 4.45 4.51 4.40 4.35 4.16 146.46 122.31
2026+ +2.0%/yr +2.0%/yr +2.0%/yr +2.0%/yr +2.0%/yr +2.0%/yr +2.0%/yr
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United States - Oil, Natural Gas Liquids and
Natural Gas Price Forecast
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Natural Gas
Oil Liquids Natural Gas
Year $US/bbl $US/bbl $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
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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.
Follow DXI Energy's latest developments on: Facebook http://facebook.com/dxienergy and Twitter @dxienergy.
Contacts:
DXI Energy Inc.
Robert L. Hodgkinson
Chairman & CEO
604-638-5055
investor@dxienergy.com
DXI Energy Inc.
Craig Allison
Investor Releations- New York
914-882-0960
callison@dxienergy.com
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