Records Positive Cash Flow From Operations With 68% Increase in Production

/EINPresswire.com/ -- VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 11/05/15 -- DXI Energy Inc. (TSX: DXI)(NYSE MKT: DXI) ("DXI" or the "Company"), an upstream oil and gas exploration and production company operating in Colorado's Piceance Basin and the Peace River Arch region in British Columbia, today announced its financial results for the three and nine month periods ended September 30, 2015. All share and per share amounts reflect the one-for-five share consolidation that occurred on October 30, 2015.

Q3 2015 Key Financial and Operating Highlights:

1.  Extended the $6.5 million bridge financing from a Director and Officer
    ($4.5 million) and a company associated with the Director and Officer
    ($2.0 million) in their current form until December 31, 2015;

2.  Increased oil and natural gas production by 68% to 643 BOE/d from 382
    BOE/d for the comparative period ended September 30, 2014;

3.  Reduced G&A expenses per BOE by 66% to $7.25 per BOE from $21.57 per BOE
    for the comparative period ended September 30, 2014; and

4.  Commenced production testing of seven drilled and cased Williams Fork
    wells and a single deep vertical Mancos/ Niobrara well at the Kokopelli
    Project in the Piceance Basin, Colorado. The tests extended into Q4 2015
    and resulted in the deep 13600' Mancos/ Niobrara discovery selectively
    flowing at over 8 mmcf/d (approx. 1300 BOE/d) and the seven Williams
    Fork wells collectively flowing over 6 mmcf/d plus liquids with at least
    60% of completion fluids yet to be recovered. Testing is ongoing and
    daily flow rates vary in accordance to line pressures and injected water
    recovery. IP rates to be applied for YE evaluations are expected to be
    reported during late Q4 2015. DXI Energy maintains a 25% WI in the
    Project.

CORPORATE SUMMARY - THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2015

----------------------------------------------------------------------------
                                Three months ended      Nine months ended
OPERATIONS                        September 30,           September 30,
----------------------------------------------------------------------------
                               2015    2014   Change   2015    2014   Change
----------------------------------------------------------------------------
Production
----------------------------------------------------------------------------
  Oil and natural gas
   liquids (bbls/d)              385     210     83%     320     189     69%
----------------------------------------------------------------------------
  Natural gas (mcf/d)          1,546   1,036     49%   1,425   1,841    -23%
----------------------------------------------------------------------------
  Combined (BOE/d)               643     382     68%     558     496     12%
----------------------------------------------------------------------------

----------------------------------------------------------------------------
Realized sales prices (1)
----------------------------------------------------------------------------
  Oil and natural gas
   liquids ($/bbl)             52.63   96.07    -45%   55.91   92.52    -40%
----------------------------------------------------------------------------
  Natural gas ($/mcf)           2.28    4.28    -47%    2.38    5.71    -58%
----------------------------------------------------------------------------

----------------------------------------------------------------------------
Operating expenses (2)
----------------------------------------------------------------------------
  Oil operations ($/bbl)       11.74   27.93    -58%   14.89   26.48    -44%
----------------------------------------------------------------------------
  Natural gas operations
   ($/mcf)                      2.47    3.55    -30%    3.15    3.77    -16%
----------------------------------------------------------------------------

----------------------------------------------------------------------------
Operating netback (3)
----------------------------------------------------------------------------
  Oil operations ($/bbl)       30.14   51.94    -42%   30.24   50.27    -40%
----------------------------------------------------------------------------
  Natural gas operations
   ($/BOE)                     -1.57    2.71   -158%   -5.00    5.94   -184%
----------------------------------------------------------------------------

----------------------------------------------------------------------------
General and administrative
 expenses ($/BOE)               7.25   21.57    -66%   10.71   17.54    -39%
----------------------------------------------------------------------------

----------------------------------------------------------------------------

Notes:

1.  Decrease reflected lower benchmark oil and natural gas prices in Canada
    and the rest of the world.
2.  Decrease resulted from the allocation of fixed operating costs over a
    higher oil production volume. This was offset by the costs associated
    with the reactivation of one of the gas wells at Drake/Woodrush and
    higher contractual pipeline transportation costs associated with a new
    contract signed on November 1, 2014.
3.  Decline due to the reduction in oil and natural gas prices.


----------------------------------------------------------------------------
FINANCIAL (CA$ thousands,       Three months ended      Nine months ended
 except per share)                September 30,           September 30,
----------------------------------------------------------------------------
                               2015    2014   Change   2015    2014   Change
----------------------------------------------------------------------------

----------------------------------------------------------------------------
Revenue                        2,189   2,257     -3%   5,811   7,639    -24%
----------------------------------------------------------------------------
Royalties                        389     339     15%     966   1,292    -25%
----------------------------------------------------------------------------

----------------------------------------------------------------------------
Cash flow (1)                    628     250    151%     696     605     15%
----------------------------------------------------------------------------
Cash flow per share (basic)     0.02    0.01      0%    0.02    0.02      0%
----------------------------------------------------------------------------
Cash flow per share
 (diluted)                      0.01    0.01      0%    0.02    0.01      0%
----------------------------------------------------------------------------

----------------------------------------------------------------------------
Net income (loss)             -1,608  -1,620     -1%  -3,281  -3,872    -15%
----------------------------------------------------------------------------
Basic ($/common share)         -0.04   -0.05      0%   -0.09   -0.12      0%
----------------------------------------------------------------------------
Diluted ($/common share)       -0.04   -0.05      0%   -0.09   -0.12      0%
----------------------------------------------------------------------------

----------------------------------------------------------------------------
Capital expenditures, net of
 dispositions                  2,641     124  2,030%   4,502   1,463    208%
----------------------------------------------------------------------------

----------------------------------------------------------------------------
Weighted average common
 shares outstanding
 (thousands)
----------------------------------------------------------------------------
Basic                         36,493  35,648      2%  36,490  32,151     13%
----------------------------------------------------------------------------
Diluted                       36,493  35,648      2%  36,490  32,151     13%
----------------------------------------------------------------------------

----------------------------------------------------------------------------
Debt, net of working capital                          11,249   2,556    340%
----------------------------------------------------------------------------

Note:

1.  "Cash flow" is a non-GAAP measure calculated by adding back settlement
    of decommissioning liabilities and change in operating working capital
    to cash flows from (used in) operating activities. See "Non-GAAP
    Measure" below for details.

SUPPLEMENTAL FINANCIAL INFORMATION - NON-GAAP MEASURE

----------------------------------------------------------------------------
                                      Three months ended  Nine months ended
                                        September 30,       September 30,
(CA$ thousands)                         2015      2014      2015      2014
----------------------------------------------------------------------------

Cash flows from (used in) operating
 activities                                598     (509)       693     (454)
Change in operating working capital         30       759         3     1,059
----------------------------------------------------------------------------
Cash flow                                  628       250       696       605
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Share Consolidation Amendment

DXI announces that it has amended the number of issued post-consolidation shares from 36,494,609, as reported on October 27, 2015, to 36,494,351. The amendment is due to a correction in a fractional rounding calculation.

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 (39,998 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

Craig Allison
914-882-0960
Investor Relations - New York
callison@dxienergy.com

Legal Disclaimer:

EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.