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Dixie Reports Production on Mississippi, Alabama Assets

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Dixie Reports Production on Mississippi, Alabama Assets

Dixie Energy Trust has provided an operational update.

Operations Update and Asset Overview

Based on field estimates, Dixie’s current production is approximately 110 boepd (net) (90% oil). Dixie’s production is generated from the Maple Branch wells in Mississippi and the Brooklyn and Little Cedar Creek wells in Alabama.

Mississippi Assets

In the second half of 2013, Dixie and its partners drilled 3 (1.2 net) oil wells (Holliman 7-12 No.1, Holliman 17-6 No. 1 and Holliman 18-5 No. 1) in Maple Branch. The Holliman 7-12 No. 1 and Holliman 17-6 No. 1 were completed and came on production in the fourth quarter and Dixie intends to perform fracture stimulation on the Holliman 18-5 No. 1 well early in the third quarter of 2014.

During the fourth quarter of 2013 the Maple Branch average daily oil production was 44 bopd (net) and average daily natural gas production, which is currently being flared, was 175 mcfpd (net). Dixie is evaluating alternatives to tie the gas into existing infrastructure. Production has remained consistent in the first quarter of 2013.

Alabama Assets

During the fourth quarter of 2013, Dixie’s production from the Brooklyn field was 46 boepd (net) (82% oil). In late March, the Amos 36-3 well was acidized with positive results and it is currently restricted to 400 bopd, which is the maximum rate limitation for Alabama. In the first quarter of 2014, Dixie participated in the drilling and completion of the Bradley 25-5 well (3% working interest), in the Little Cedar Creek field; this well came on production in mid-March. Overall production from the Smackover formation has remained consistent in the first quarter of 2013.