HXPN, Inc. announces 2022 Q1, Q2 Revenue, Sheppard Pool Energy Oil Recompletion Flow Test Results, Bayou Villars First Well Recompletion Oil Production Rate.
FRISCO, TEXAS, Oct. 14, 2022 (GLOBE NEWSWIRE) -- HXPN, Inc. (OTC PINK: HXPN) (the “Company”), an emerging technology and mineral resources development company, today announced 2022 1st Quarter revenue of $1,175,000, and 2022 2nd Quarter revenue of $640,000, with each resulting from the sale of a net profits interest in its Sheppard Pool Energy investment and its Bayou Villars investment, respectively, with each investment being announced earlier this year. The Company owns 75% of Sheppard Pool Energy. The sale of the net profits interest of the Sheppard Pool Energy recompletion project is one third (1/3rd) of the net profits of the production of the fifteen (15) wells that the Company will re-complete. The sale of the net profits interest of the Bayou Villars recompletion project is one half (1/2) of the net profits of the production from the first well that the Operator will re-complete and one third (1/3rd) of the net profits from the production of the second well that the Operator will re-complete. The proceeds from the sale of the net profits interests were used to finance the recompletion projects of both investments. The Company expects to release its full Q1 and Q2 financial statements in the near future.
Additionally, and also related to the Sheppard Pool Energy investment, the Company announced the results of a limited flow test of the first two recompleted wells in the Sheppard Pool Energy 15-well recompletion project. Both wells were perforated in the oil prolific Dutcher formation and each received an acid stimulation. Each well has test flowed at an initial production rate of ten to twelve (10-12) barrels of oil per day and 50-100 mcf of gas per day. At present the Company is considering additional procedures to increase the daily production rate per well to the anticipated 25-50 barrels per day of oil production. The Company may opt to place the wells on production and produce them as is without performing any additional procedures at this time in order to gain additional information about the zone and its production characteristics. Sheppard Pool Energy receives Oklahoma Sweet Crude pricing for its oil, which generally tracks close to WTI. Based on an $80 oil price and ten barrels of daily oil production, each recompleted well would generate an estimated $24,000 of monthly gross revenue, with the Company’s share of that gross revenue being an estimated $18,000 per well, prior to the net profits interest.
Finally, the Company today also announces that the Operator of its recently-acquired twenty-five percent (25%) working interest in the Bayou Villars field in south Louisiana has established a daily production rate of 125-150 barrels of oil per day and 150-200 mcf of gas per day in the recently re-completed #1 well in the field. The well is performing as expected based on analog wells in the field and surrounding area that are completed in the same oil zone. The Operator of the field plans to recomplete another well in the field into the same oil sand horizon in Q1 2023, which would double the field’s production to 250-300 barrels of oil per day. After the recompletion of the 2nd well in Q1 2023, the Operator plans to drill a new well to access an additional 500,000 barrels of proved oil reserves which would increase total field daily production to 375-450 barrels of oil per day. The Bayou Villars oil production receives Louisiana Light Sweet crude pricing which tracks close to the Brent crude price. The monthly gross revenue for 125 barrels of daily production at a $90 oil price would be an estimated $337,000 per month, and the Company’s share (25%) of that gross revenue would be just over $84,000 per month, prior to the net profits interest. The Company expects oil prices to increase in the coming winter months and into 2023.
About HXPN, Inc.
Based in Frisco, Texas, HXPN is engaged in the acquisition and development of emerging technologies that will impact everyday life. Additionally, the Company seeks to acquire mineral resources necessary for the production of energy that enable the sustainability of daily life in our ever-changing world.
Notice Regarding Forward-Looking Statements:
This news release may contain "forward-looking statements," as that term is defined in Section 27A of the United States Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements in this news release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions for the future. Such forward-looking statements include, among other things, the ongoing effect(s) of domestic and world economic conditions and any related impact(s) on the potential business development and future interest in our technology and resources investments.
Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, general economic and political conditions, and other domestic and world events. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that the beliefs, plans, expectations and intentions contained in this news release are reasonable, there can be no assurance that such beliefs, plans, expectations or intentions will prove to be accurate.
HXPN, Inc is currently a non-reporting OTC-quoted “Pink Limited Information” company, and has achieved compliance with recently-amended SEC Rule 15c2-11, which requires that “companies make current information publicly available to maintain a market.” Investors should consult all information set forth herein and on the Company’s website for the latest available information.
CONTACT:
HXPN, Inc.
Stephen L. Bailey, President
6136 Frisco Square Boulevard, Suite 400
Frisco, TX 75034
(833) 250-6645
Investors & Analysts Contact:
HXPN Investor Relations
(833) 250-6645
For more information, visit HXPN's website:
