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Dixie Energy Trust Releases Second Quarter 2014 Financial Results and Appoints an Independent Director(Canada Newswire Via Acquire Media NewsEdge) CALGARY, Aug. 26, 2014 /CNW/ - Dixie Energy Trust ("Dixie" or the "Trust") is pleased to report its financial results for the quarter and six month period ended June 30, 2014. Dixie's unaudited interim condensed consolidated financial statements for the three and six months ended June 30, 2014 and related management's discussion and analysis ("MD&A") have been filed with the applicable securities regulators and are available on the Trust's website at DixieEnergyTrust.com and on SEDAR at sedar.com. All figures are presented in Canadian dollars unless otherwise indicated. Summary of Second Quarter and First Half Financial Results For the quarter ended June 30, 2014, Dixie had oil and natural gas revenues, net of royalties of $657,517, a net loss of $447,449 and a basic and diluted net loss of $0.01 per trust unit. The Trust's total comprehensive loss for the period, which included a foreign currency translation loss of $879,486, was $1,326,985. For the six months ended June 30, 2014, Dixie had oil and natural gas revenues, net of royalties of $1,310,738, a net loss of $865,065 and a basic and diluted net loss of $0.02 per trust unit. The Trust's total comprehensive loss for the period, which included a foreign currency translation gain of $63,405, was $801,660. As of June 30, 2014, the cash position of the Trust was $435,875 with working capital deficiency of $536,187. Second Quarter and First Half 2014 Highlights Dixie acquired additional oil and gas leases totaling 277 gross acres (110 net) of undeveloped land in the Maple Branch prospect in Lowndes and Monroe County, Mississippi (the "Maple Branch Prospect"). As at June 30, 2014, Dixie held a 40% working interest in 15,555 gross acres (6,222 net) of undeveloped land in the Maple Branch prospect.During the second quarter of 2014, Dixie's average oil and gas production was 106 boepd (95% oil) and its netback was US$50.89 per boe. During the second quarter, Dixie's average oil sale price was US$98.47 per boe. During the six months ended June 30, 2014, Dixie's average oil and gas production was 105 boepd (91% oil) and its netback was US$47.50 per boe. During the six months, Dixie's average oil sale price was US$97.71 per boe.Subsequent to June 30, 2014 On August 5, 2014, Dixie announced it had closed an acquisition of interests in certain oil and gas properties in the Black Warrior Basin in Mississippi for a purchase price of US$8.0 million, subject to certain purchase price adjustments. As part of the acquisition, Dixie assumed operatorship of certain wells that are jointly owned by Dixie and its other working interest partners in the Maple Branch Prospect. On July 31, 2014, Dixie announced that Dixie Energy Holdings (US), Inc. ("Dixie US") and Dixie Energy Holdings (Canada) Ltd. ("Dixie Canada") had each entered into a short term loan agreement, for an aggregate principal amount $13.5 million. The loans bear interest at a rate of 15% per annum and each mature and become fully repayable on October 30, 2015. The purpose of the loans were to provide Dixie with sufficient capital to complete the above noted acquisition of interest in certain oil and gas properties in the Black Warrior Basin in Mississippi, undertake certain operational and optimization activities on its oil and gas assets in the Maple Branch prospect and for general corporate purposes. For further information on the acquisition and loans please refer to Dixie's news releases distributed on July 31, 2014 and August 5, 2014. As of August 26, 2014, Dixie has a cash position of $4.1 million and a positive working capital position of approximately $2.3 million. Appointment of Michael Kelly to the Dixie Energy Ltd. and Dixie Energy Holdings (Canada) Ltd. Board of Directors Dixie is pleased to announce the appointment of Mr. Michael Kelly to the board of directors of the administrator of the Trust, Dixie Energy Ltd., and Dixie Canada. Dixie's Audit Committee has been reconstituted and Mr. Kelly has been appointed Chairman of the Audit Committee. Mr. Kelly is a proven leader in the oil and gas industry with over 25 years experience in managing growth oriented companies in domestic and international markets. Currently, Mr. Kelly is consulting with ARC Financial Corp. where is he actively pursuing investment opportunities in the Canadian oil and gas service industry. Prior thereto he was a member of the executive team that led Trican Well Service Ltd. (TSX: TCW) from a Canadian focused microcap service company to a multi-billion market cap full service provider with operations extending through North America, Russia, Australia, North Africa and the Middle East. Mr. Kelly is a Chartered Accountant and is a past President and founding member of the Petroleum Service Association of Canada Standing Committee on Finance. About Dixie Energy Trust Dixie is an energy trust created to provide investors with an oil and gas exploration focused investment. The strategy of Dixie is to acquire, exploit and develop, indirectly through its subsidiaries, long-life crude oil and gas prospects and reserves in the United States gulf coast states, primarily in Mississippi and Alabama. Additional information is available on DixieEnergyTrust.com. Note regarding non-IFRS financial measures This press release makes reference to the term "netback" which is a non-IFRS financial measure that does not have any standardized meaning prescribed by IFRS and may not be comparable to similar measures presented by other issuers. Management believes that "netback" provides useful information to investors and management since such measures reflect the quality of production and the level of profitability of Dixie's oil and gas operations. Netback is calculated by subtracting royalties, production taxes, transportation and operating costs from gross revenues. Other financial data has been prepared in accordance with IFRS. Oil and Gas Disclaimers "boepd" means barrels of oil equivalent per day. Boes may be misleading, particularly if used in isolation. A boe conversion ratio of 6 mcf:1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. As the value ratio between natural gas and crude oil based on the current prices of natural gas and crude oil is significantly different from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value. © 2014 Dixie Energy TrustAll rights reservedAll other trademarks are the property of their respective owners SOURCE Dixie Energy Trust |