DXI Energy Inc (TSE:DXI) (OTCQB:DXIEF), an oil and gas exploration company, reported fourth quarter and full year results after the bell on Wednesday that showed off growing revenues and a narrowing net loss.
The company, which operates in Colorado's Piceance Basin and the Peace River Arch region in British Columbia, saw revenue of C$377,000 for the three months ended December 31, 2019, which was 23% more than the $307,000 it made in the same period in 2018.
The group's quarterly net loss shrunk by 66% year over year, dropping from C$8.7 million to C$2.9 million, or from C$0.08 per share to C$0.01 per share.
One reason for the growth was a jump in natural gas production. DXI produced 1,501 million cubic feet per day (mcf/d) in the fourth quarter, more than quadruple the 360 mcf/d it made a year earlier.
For the full year, revenue fell by 34% to $1.27 million in 2019 from $1.95 million in 2018 but the group's net loss narrowed by 55% to C$5.2 million from C$11.63 million, or to C$0.03 per share from C$0.11.
The company noted that in 2019 it was able to raise gross proceeds of nearly C$3.3 million despite challenging market conditions, which allowed it to develop additional natural gas reserves at the Woodrush operations in British Columbia.
Going forward, though, DXI said its Woodrush multi-well production facility, which is owned by a subsidiary, has been formally shut down and will be sold. The necessary funding to convert the operation into a methanol plant did not materialize, the company said. The Kokopelli multi-well gas production facility in Colorado will also be sold, it added.
Additionally, DXI converted C$780,000 in secured convertible debt with arms-length US investors into almost 13 million common shares of the company. It completed the conversion of another C$3.5 million in convertible debt into 58.3 million shares and converted C4161,000 in accrued interest into almost 2.7 million shares.
DXI also revealed that it intends to take advantage of the 45-day regulatory filing extension granted to Canadian companies due to the coronavirus (COVID-19) pandemic. The company now plans to file its results for the three months ended March 31 2020, by June 29.
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