TSX: DXI OTCQB: DXIE
The Company's most significant oil and gas plays are located in the US Rocky Mountains where DXI Energy's acreage and projects are in in the Piceance Basin located in Western Colorado.
DXI Energy has graded two key projects in the Piceance Basin of western Colorado. This basin is more than 100 miles long and has an average width of over 60 miles, encompassing an area of over 7,100 square miles. It contains reserves of coal, natural gas, and oil shale. The primary target of gas development has been the Williams Fork Member of the Cretaceous Mesa Verde Formation, a several-thousand-foot thick section of shales and sandstones. The deeper Mancos Shale is also a target which has yielded noteworthy discoveries of natural gas and is enhancing production economics throughout many parts of the Piceance Basin. This formation is currently being developed via vertical wells but is a candidate for horizontal well technologies which will yield greater production rates and reserves per well. To date, over 10,000 Mesa Verde wells have been drilled throughout the Basin, with 2009 daily production reaching over 1BCF/d of gas.
Major natural gas producers in this area include Williams, Exxon, Oxy (USA) , Chevron, and Encana.