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DXI Energy on the hunt for new business, puts energy assets up for sale

DXI told shareholders that its decision to exit the hydrocarbon business stemmed from 'current affairs beyond the company’s control'

DXI Energy -
Funds from the anticipated sale will go towards searching for new business

DXI Energy Inc (TSE:DXI) (OTCQB:DXIEF) is examining its path forward amid the economic upheaval caused by the coronavirus pandemic and subsequent drop off of oil prices.

The Vancouver-based company said Tuesday that it was planning a sale of its hydrocarbon assets, including the 99% owned-Woodrush production facility and its Kokopelli gas project in Colorado.

Funds from the anticipated sale will go towards searching for new business, DXI said in a statement announcing its exit from the hydrocarbon business.

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DXI told shareholders that the decision stemmed from “current affairs beyond the company’s control.” On Tuesday, the US Energy Information Administration lowered its 2020 forecast for West Texas Intermediate and Brent Crude Oil prices by 23% to US$29.34 a barrel and 24% to $33.04.

The firm said it decided to part ways with CEO Simon Raven and CFO David Matheson, as well as three additional members of its board of directors. Matheson will continue to help the company in the asset sale and file obligatory financial statements in the near term, according to DXI.

The remaining board members will “use their best efforts to secure a new path of opportunity for the company's stakeholders,” DXI told investors in a statement, acknowledging the strategy may take several months in light of current global issues, the pursuit of new business, capital reorganization and new financing.

“The company looks forward to reporting to all stakeholders as we move through this period of reorganization,” it said in a statement.

DXI will file its quarterly and annual financial statements by May 14.

Contact Angela at [email protected]

Follow her on Twitter @AHarmantas

Quick facts: DXI Energy

Price: 0.01 CAD

Market: TSX
Market Cap: $2.53 m

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