Xfuels Announces Cycle Oil & Gas Purchase of Property & Oil Leases in Electra, Texas
Electra, Texas, Oct. 06, 2022 (GLOBE NEWSWIRE) -- Today, Xfuels Inc. (OTC Pink: XFLS) announces Cycle Oil & Gas has closed its purchase of Ray Loveless Enterprises LLC & R.L. Gathering LLC (RL), of Allen, Texas in an all-cash deal consisting of 10 leases, 106 wells, 10 oil batteries, 3 Acre industrial yard & Shop, & Equipment in Wichita County, TX. Cycle paid $250,000 (Two Hundred and Fifty Thousand) dollars plus a 2.5 % capped ORRI to $325,000 (Three Hundred Twenty-Five Thousand) dollars for a total purchase price of $575,000 (Five Hundred and Seventy-Five Thousand).
Adjacent to the "Ray Loveless" leases are 3 of the "Triple S Gas" leases that Cycle purchased and disclosed on September 29, 2022. The 13 combined leases "RLE & Triple S" fall within a 6 square mile radius that Cycle Oil & Gas will work to develop a workover program to bring nearly 80 shut-in wells back online through the use of their own rigs & licensed technologies. Cycle sees this as a prime opportunity to cut fuel costs & mob times on their service rigs from well to well, while increasing production and lowering lease operating expenses bottom line.
Mr. Michael McLaren, CEO states: “This acquisition makes the most economical sense for the company & its shareholders as commodity & fuel prices continue to increase. We will be able to keep our rig movements to a minimum and cut diesel usage. Our team in Texas is already working to evaluate these properties and eager to get focused on the project and push these leases to their maximum potential.” Mr. McLaren further states, “As stated before our business strategy of "Acquire, Restore, Produce and Consolidate" fits perfectly with these leases & existing contracts where we can apply our world-class know how and stimulation technologies to maximize the potential of the production.”
To date Ray Loveless Enterprises has produced approximately 25,000 barrels from the properties during their ownership and given the locations and well control in the area, Cycle believes that this is only a fraction of the recoverable oil available. Cycle Oil & Gas and Cycle Energy Services are licensed oil and gas producers in the state of Texas.
ABOUT XFUELS
XFuels Inc. (OTC Pink: XFLS) is a diversified & licensed energy company based in the state of Texas. It operates three vertically integrated businesses.
The keystone of the Xfuels enterprise is Cycle Oil and Gas. This wholly owned subsidiary focuses on acquiring and optimizing underdeveloped oil and gas assets. It employs both internally developed and third party-licensed technologies to increase production, optimize performance and reduce cost. Cycle Oil and Gas currently produces approximately 110 barrels of oil per day from Canadian properties. It also holds various oil and gas royalty positions and controls several non-operating oil and gas properties.
The second business unit under Xfuels is Cycle Energy Services. This wholly owned subsidiary supports Xfuels’ overall exploration and production efforts with "well services" and "end of life reclamation." Cycle Energy Services owns and operates a combination of customized wireline-service rigs and HydroVac units. This equipment allows for faster "rig in" and "rig out" times. Overall, Cycle Energy Services equipment and experience combination reduces the amount of time and fuel burned to complete an abandonment.
The third and final business unit under Xfuels is Cycle Energy Technologies. This wholly owned subsidiary provides both R&D and existing technology to enable increased production in the field. Xfuels flagship intellectual property is its mobile Gas To Liquid system. This is used to convert natural gas and other gaseous hydrocarbons into longer-chain hydrocarbons, such as gasoline or diesel fuel. Each of Xfuels three vertically integrated businesses just mentioned -Cycle Oil and Gas, Cycle Energy Services, and Cycle Energy Technologies- all operate in tandem to help Xfuels capture unique opportunities that often go untapped by the company's competitors.
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Media contact:
Michael McLaren
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