DXI Energy Inc., an upstream oil and natural gas exploration and production company operating projects in Colorado’s Piceance Basin and the Peace River Arch region in British Columbia today announces (All figures in Cdn.$):

1. The Company has received all B.C. Oil & Gas Commission (“BCOGC”) permits to commence the drilling of a key Halfway formation exploration well at its Woodrush NE B.C. complex. Contracts for the building of road access and an environmentally modified drill pad meeting specs of all First Nation stakeholders have been issued and construction is underway. Drilling is expected to commence no later than mid-March, 2019.
2. The TSX has conditionally approved an expansion and extension of the capital raise previously announced on February 6, 2019 from the original $1,800,000 to $2,400,000 through to March 29, 2019 at the same price of $0.06 per share (the “Private Placement”). With the incremental $600,000, the Company plans to apply these proceeds to fund 99.0% of the completed costs of the b-089-E/94-H-1 well to earn a 99% working interest before and after payout without any incremental royalty burdens.
3. The Company has received subscriptions to date for $1,620,000 of the $2,400,000 of the Private Placement. The Private Placement will remain open until the earlier of when it is fully subscribed and March 29, 2019.

In addition to funding 99.0% of the completed costs of the b-089-E/94-H-1 well, the remainder of the proceeds from the Private Placement will be applied to general working capital. No insiders will be participating in the Private Placement and the Private Placement remains subject to final TSX approval.

“With the permit to drill from the BCOGC (inclusive of all other stakeholders), we will now test the voracity of the Paradigm 3D seismic imaging and interpretation software with the drilling and completion of this important Woodrush Halfway pool test prior to winter 2019 break up,” comments CFO David Matheson.

“Having received conditional approval of the TSX, the Company is planning to raise a further $600,000 (total of $2,400,000) and will entertain interested parties for a portion of this addition. All funds are earmarked for Woodrush operations and general working capital which excludes any cash interest payments in respect of remaining corporate debt. Both the Company’s CEO and Chairman, the two largest stockholders, are committed to continue to significantly reduce corporate debt and will never receive any future cash compensation, thus ensuring their return on investment in the Company’s shares will derive from share appreciation like all other shareholders,” Matheson continues.

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