Doxa Begins Initial Production in South Texas

Doxa has commenced initial production with oil sales from the Epley project in South Texas. Doxa provided the following operational updates:

Epley No. 1-H, McMullen Co, TX

As previously reported, a 15 stage fracture stimulation operation and initial flowback has successfully been completed on the Epley No. 1-H, a horizontal Eagle Ford well operated by San Isidro Development Company. The well was recently shut-in for final hookup, pipeline and facility construction. Prior to shut-in, the well was being flowed back on a restricted choke (14/64") at a rate of 400 BOEPD (energy equivalent of 250 BOPD, 900 MCFD and 250 BWPD) with a flowing casing pressure of 1,920 psi, and approximately 15% of the frac load water recovered after two weeks of flow. Initial sales of oil production from the Epley well have commenced and the Company plans to release additional details once the well has been placed back on production with facility construction complete. Based on confirmation of commercially viable results on this initial well, Doxa expects that up to 5 gross wells may ultimately be drilled on the Epley Project.

John D. Harvison, President of Doxa, stated, "We are very excited to report that Doxa has achieved this milestone of becoming an energy producer in just over four months after approval of our qualifying transaction on May 15th."

Peeler No. 1-H, Atascosa Co, TX

In addition to commencement of first production from the Epley, drilling operations have just been completed on the initial Eagle Ford well on the Peeler Project, operated by Dewbre Operating of Corpus Christi, Texas. The Peeler Project, in which Doxa owns 20% working interest, is its previously disclosed Qualifying Transaction (see Doxa news, May 25, 2010). The Peeler No. 1-H was drilled to a total measured depth of 13,630', with a total in-zone lateral length of approximately 4,000'. The mud log for the well exhibits favorable characteristics for the targeted lower Eagle Ford formation. A 4-1/2" production liner has been run and cemented in place and the drilling rig released. Completion operations will begin in the near future and Doxa will provide additional updates when available. The Company estimates that as many as 10-14 wells could ultimately be drilled on the Peeler Project.

Koehn No. 1, Colorado Co, TX

The Company is also participating with a 6.25% working interest in the Koehn No. 1 well. Drilling operations have recently been completed on the Koehn well, which is the initial well on a previously announced conventional Wilcox prospect. A total depth of 10,227' was reached, and based on favorable well log evaluation of the objective Wilcox formation, 4 1/2" production casing was run and cemented. The log analysis indicates approximately 135' of gross potential pay interval and 45' of net potential pay. Completion operations and facility construction have been commenced.