Doxa Finalizes Interest Acquisition in Tx. Proj.

- Doxa Finalizes Interest Acquisition in Tx. Proj.

Monday, July 25, 2011
Doxa Energy Ltd.

Doxa has closed on the acquisition of a 16.70625% interest in the County Line North Project, McMullen County, Texas, a new venture targeting various Wilcox formation zones of interest. The County Line North Project, operated by Hurd Enterprises, Ltd., of San Antonio, Texas, is a conventional gas condensate prospect which is situated on an initial 280 acre block of leases. Drilling of the Kynette No. 1, the initial well on this project, has been commenced and is proceeding towards its permitted depth of 10,500'. Doxa owns 16.70625% working interest before payout, reverting to 12.5% after payout of this project, and expects its share of the leasehold and initial completed well cost to total approximately $500,000. This project is situated approximately 2 miles northeast of a recently announced successful completion, the Martin-State Gas Unit No. 1 well, a high rate Wilcox producer completed in the Campana, South (Wilcox 10,200') Field. Hurd Enterprises, Ltd. also operates the Martin-State well.

Doxa Energy Ltd. develops and maintains a portfolio of producing and developing conventional and unconventional assets, including the Eagle Ford shale oil window play in South Texas, and the recently announced acreage acquisition in the Mississippian Oil Play of northern Oklahoma.

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Doxa Brings Tx. Well Online

- Doxa Brings Tx. Well Online

Tuesday, July 19, 2011

Doxa announced the successful completion and commencement of production from its Martin-State Gas Unit No. 1 well, a high rate, Wilcox formation gas condensate well in McMullen County, Texas. The Company expects that production from this well will add substantially to its monthly net cash flow, and will achieve payout within one year.

This is the Company's first of 2-3 wells planned on its 623 gross acre County Line Prospect, in which Doxa owns a 14.0625% working interest and a respective 10.4867% net revenue interest. Hurd Enterprises, Ltd. of San Antonio, Texas, is the designated Operator of this prospect.

After drilling the well to a total depth of 11,800', the well was initially completed in the lowermost pay interval from 10,466-10,482'. During the 4-point production test, the well flowed naturally at the high rate of 4,297 MCFPD and 101 BCPD on a 12/64" choke with 5,945 psi tubing pressure. The well was placed on-line last month flowing at a restricted rate of approximately 3,200 MCFPD, 60 BCPD and 5 BWPD. As stated, additional wells are expected to be drilled on the project, and Doxa will maintain its 14.0625% working interest in any such subsequent operations or wells.

"The success of the Martin State No. 1 is meaningful not only for the immediate impact on our sales and profitability but also for the increased potential in the balance of our County Line Prospect along with our other Wilcox prospect holdings," stated John D. Harvison, President and CEO of Doxa. In addition, he stated, "The performance of this well validates our team's analysis of this area for prolific Wilcox hydrocarbon potential."

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Doxa to Acquire Additional Interest in Mississippian Oil Play

- Doxa to Acquire Additional Interest in Mississippian Oil Play

Friday, July 08, 2011
Doxa Energy Ltd.

Doxa has exercised its option to acquire a twenty percent (20%) leasehold interest in an existing project situated in the emerging Mississippian Oil Play ("Mississippian Oil Play") in Oklahoma. Under the terms of a previously announced Letter of Intent (see Doxa news April 27, 2011) with Dynamic Production, Inc., as amended, the Company was granted the right to acquire up to twenty percent (20%) interest in existing leases, as well as an ongoing lease acquisition program primarily in Alfalfa, Garfield, Grant and Kay Counties, Oklahoma. Dynamic Production, Inc. of Fort Worth, Texas, is managing the project and has a stated goal of acquiring approximately 18,000 acres within the play. The play is led by Chesapeake Energy Corporation, SandRidge Energy, Inc. and Eagle Energy of Oklahoma, LLC. Doxa estimates that it will ultimately acquire 3,600 net acres in this round of leasing, at a cost of approximately US $2,200,000.

John D. Harvison, President and CEO of Doxa stated, "The Mississippian Oil Play is an emerging horizontal play that has the potential to become one of the most profitable domestic onshore oil plays today, and as such has the potential of providing significant growth for Doxa as well as exceptional value for our shareholders."

According to recent public disclosures by these leading companies, this play exhibits excellent economics with single well estimated ultimate recovery projected at 300-500 MBOE and with drilling and completion costs estimated at US $3.0mil per well. In recent presentations to various professional associations over the past months, SandRidge has reiterated that it expects to achieve over 100% (i)ROR, and a net present value per well of approximately US $5.9mil, based on recent Nymex strip pricing. Based on current knowledge of well spacing disclosures from area operators, Doxa anticipates that up to 72 gross wells may ultimately be drilled on the acreage block, or 14 wells net to Doxa, based on its twenty percent (20%) participation level. The Company plans to release additional information on the proposed acquisition once details are finalized.

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