Dixie Energy Trust Releases Fourth Quarter and Year-End December 31, 2013 Financial Results, December 31, 2013 Reserves Results and Board of Directors Resignation

CALGARY, April 30, 2014 /CNW/ - Dixie Energy Trust ("Dixie" or the "Trust") is pleased to report its financial results for the fourth quarter and the year ended December 31, 2013 and the filing of its statement of reserves data and other oil and gas information and other reserves filings (the "Reserves Filings") as at December 31, 2013. Dixie's audited financial statements, related management's discussion and analysis ("MD&A"), and the Reserves Filings have been filed with the applicable Canadian securities regulators and are available on the Trust's website and on SEDAR at www.sedar.com.

Summary of Fourth Quarter and Year End 2013 Financial Results

For the quarter ending December 31, 2013, the Trust had oil and gas revenues (net of royalties) of $526,655, and a net loss of $1,470,779 and a basic and diluted net loss per trust unit of $0.04. The Trust's total comprehensive loss for the period, which included a foreign currency translation gain, was $668,380. The Trust declared no distributions during the period.

For the year ended December 31, 2013, the Trust had oil and gas revenues (net of royalties) of $1,464,236, a net loss of $4,611,211 and a basic and diluted net loss per trust unit of $0.16. The Trust's total comprehensive loss for the period, which included a foreign currency translation gain, was $3,752,819.

As of December 31, 2013 the cash position of the Trust was $1,564,399 with working capital of $1,303,262.

2013 Highlights

• Acquired additional oil and gas leases and consolidated working interests in the Maple Branch prospect in Lowndes County, as well as the Strong Field and Hamilton & West McKinley Creek prospects in Monroe County. By the end of the year, Dixie had a 40% working interest in 14,300 gross acres (5,720 net) of undeveloped land in the Maple Branch prospect, a 60% working interest in 3,801 gross acres (2,280 net) of undeveloped land in the Strong Field prospect and an average 51.2% working interest in 2,508 gross acres (1,284 net) of undeveloped land in the Hamilton & West McKinley Creek prospect.
  
  
• Acquired a 45% working interest in the McKinley Creek gas gathering system pipeline, which consists of approximately 10 miles of 4" pipe with associated 2" and 3½" gathering lines and transports solution gas within the Hamilton & West McKinley Creek natural gas fields.
  
  
• Expanded its Black Warrior Basin resource play east into Alabama with the acquisition of a 45% working interest in 588 gross acres (265 net) of oil and gas leases in the Star prospect in Lamar County.
  
  
• Acquired 5.0% and 9.3% working interests in the Godwin 31-3 and Amos 36-3 wells respectively, in the Brooklyn field, Conecuh County, Alabama.
  
  
• Acquired a 50% working interest in approximately 3,942 gross acres (1,970 net) of undeveloped mineral leases in the new Queens prospect in the Conecuh and Escambia Counties adjoining the Brooklyn field to the southeast.
  
  
• Participated in a joint 3D seismic program over the lands in the Queen's prospect and is currently evaluating the data.
  
  
• Purchased an 8.7% net working interest in 132 gross acres in the White Castle prospect in Iberville Parish, Louisiana and participated in the drilling of the Forest Homes No.1 and No.2 wells.
  
  
• Participated in five horizontal wells in the Maple Branch prospect of which four wells were completed in 2013. Currently there are four producing oil wells on Dixie's acreage and the fifth horizontal well is scheduled for completion in 2014. Three of these wells are producing from the Lewis Formation and one well is producing from the Sanders Formation.

Evaluation of Dixie's Oil & Natural Gas Reserves for the year ended December 31, 2013

Dixie commissioned DeGolyer and MacNaughton Canada Limited ("DMCL") to conduct an evaluation of its oil and gas reserves as at December 31, 2013 in accordance with National Instrument 51- 101 - Standards for Disclosure for Oil and Gas Activities of the Canadian Securities Administrators ("NI 51-101").  This is the first evaluation of its kind for Dixie, as it had not previously booked any reserves prior to its 2013 operational activities.

Based on the DMCL report (and the assumptions made therein), Dixie's gross Proved plus Probable Reserves are estimated at 1.85 MMboe, of which approximately 56% is comprised of Light Oil (1.03 MMbbl). The following table summarizes Dixie's gross Proved, Probable, and Proved plus Probable Reserves.

		Light and Medium Oil (Mbbl)	Natural Gas (MMcf)
Total Proved		775	3,620
Total Probable		255	1,303
Total Proved plus Probable		1,030	4,923

For further information respecting the DMCL report and Dixie's reserves, see our Form 51-101F1 Statement of Reserves Data and Other Oil and Gas Information for the year ended December 31, 2013 and other National Instrument 51-101 filings, which have been filed on SEDAR at www.sedar.com.

Board of Directors Resignation
Dixie announces that Mr. Earl Fawcett, a member of the Administrator's and Dixie Energy Holdings (Canada) Ltd.'s board of directors has resigned from these positions to pursue other personal and professional opportunities. On behalf of both employees and unitholders, the Board would like to thank Earl for his support.

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 http://www.DixieEnergyTrust.com

Forward Looking Statement Disclaimer
Certain statements included in this news release constitute forward looking statements or forward looking information under applicable securities legislation. Such forward looking statements or information are provided for the purpose of providing information about management's current expectations and plans relating to the future. Readers are cautioned that reliance on such information may not be appropriate for other purposes. Forward looking statements or information typically contain statements with words such as "anticipate", "believe", "expect", "plan", "intend", "estimate", "propose", "project" or similar words suggesting future outcomes or statements regarding an outlook. Forward looking statements or information in this news release include, but are not limited to the anticipated timing of fracture stimulation on the fifth well in the Maple Branch prospect. Additionally statements relating to reserves are deemed to be forward-looking statements, as they involve the implied assessment, based on certain estimates and assumptions that the reserves described can be profitably produced in the future. The recovery and reserve estimates of the Trust's reserves provided herein are estimates only and there is no guarantee that the estimated reserves will be recovered.  As a consequence, actual results may differ materially from those anticipated in the forward-looking statements.

Forward looking statements or information are based on a number of factors and assumptions which have been used to develop such statements and information but which may prove to be incorrect. The key assumptions underlying the aforementioned forward-looking statements include assumptions regarding (among other things): the methodology and conclusions set forth in the DMCL report are accurate and reasonable; the ability of the Trust to obtain financing on acceptable terms; field production rates and decline rates; the timing and costs of pipeline, storage and facility construction and expansion and the ability of the Trust to secure adequate product transportation; future commodity prices; currency, exchange and interest rates; the regulatory framework regarding royalties, taxes and environmental matters in the jurisdictions in which the Trust operates; and the ability of the Trust to successfully market its oil and natural gas production. Although Dixie believes that the expectations reflected in such forward looking statements or information are reasonable, undue reliance should not be placed on forward looking statements or information because Dixie can give no assurance that such expectations will prove to be correct.

These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond Dixie's control, including without limitation, risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, volatility in production rates, environmental risks, inability to obtain drilling rigs or other services, capital expenditure costs, including drilling, completion and facility costs, unexpected decline rates in wells, wells not performing as expected, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources, the impact of general economic conditions in Canada, the United States and overseas, industry conditions, changes in laws and regulations (including the adoption of new environmental laws and regulations) and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in foreign exchange or interest rates, and the uncertainty of estimates and projections of production, costs and expenses.

The forward looking statements or information contained in this news release are made as of the date hereof and Dixie undertakes no obligation to update publicly or revise any forward looking statements or information, whether as a result of new information, future events or otherwise unless required by applicable securities laws. The forward looking statements or information contained in this news release are expressly qualified by this cautionary statement.

Advisory on Reserves Information: All information in respect of crude oil and natural gas reserves in this press release are based upon an independent reserves report prepared by DMCL as of December 31, 2013. The report was prepared in accordance with the definitions, standards and procedures contained in the Canadian Oil and Gas Evaluation Handbook NI 51-101. Certain values in the DMCL Report are derived using DMCL's forecast prices for the year ended December 31, 2013. Unless otherwise indicated herein, all reserves and production information presented herein has been presented on a gross basis, which is the Trust's working interest prior to deduction of royalties and without including any royalty interests.

Barrels of Oil Equivalent: "boepd" means barrels of oil equivalent per day.  "bopd" means barrels of oil 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.

Selected Definitions

The following terms used in this press release have the meanings set forth below:
"bbl"  means barrel
"boe" means barrel of oil equivalent
"Mbbl" means thousand barrels
"MMbbl" means million barrels
"MMboe" means million barrels of oil equivalent
"Mcf" means one thousand cubic feet
"MMcf" means million cubic feet
"US $" means United States dollars

© 2014 Dixie Energy Trust
All rights reserved.

All other trademarks are the property of their respective owners

SOURCE: Dixie Energy Trust

Ian K. Atkinson, President & CEO or 
David G. Anderson, Chairman 
T: 403 232 1010