Calgary, Alberta--(Newsfile Corp. - February 17, 2021) - Xfuels Inc. (OTC PINK: XFLS) is pleased to report the following Share holder update.
2020 In Retrospect
Well, I would guess that it is safe to say 2020 did not go as planed however the year is behind us and although slower than anticipated we continued to grow. We anticipate 2021 being a defining year for the company with steady growth and working to meet our objectives.
Acquisitions
On June 8th, 2020 Xfuels announced it has purchased the outstanding shares of Cycle Energy Industries Ltd. for the sum of 5,000,000 USD. As of February 16th, this deal is still pending, COVID-19 delays have hindered our ability to close however we have a firm deal pending 2 conditions on pricing and the company being current. Both are being addressed and we expect this to be fulfilled as quick as possible.
As a result of the delay, it was decided to transfer the shares of Cycle Energy Services Inc. and Cycle Hydrocarbon Technologies in the interim as payment for the Xfuels issued shares and these 2 entities will become 100% wholly owned subsidiaries of Xfuels Inc. as well as 40% of the issued and outstanding shares of Cycle Energy Industries until the conditions are met and then the balance of the company will be transferred assuming there is no shortfall on pricing and valuation. The company will continue to report as Xfuels Inc. to avoid any confusion in the market.
On January 28th, 2021 Cycle Energy Industries held a virtual board meeting approving to move forward with the Xfuels acquisition of Cycle Energy Services Inc, Cycle Hydrocarbon Technologies and 40% of the issued and outstanding shares of Cycle Energy Industries which includes its ownership in Cycle Oil & Gas Ltd. As well Mr. Michael McLaren resigned as CEO and board member of both Cycle Energy Industries Inc and Cycle Oil & Gas. Mr. Charles Iggulden was appointed as Chief Executive Officer and remained a board member. Four other members were added to the board of Cycle Energy Industries and Cycle Oil & Gas Ltd. All four members are of indigenous decent to strengthen Cycles continuing relationship with indigenous communities for both ongoing business and future projects.
It was decided that Mr. McLaren focus on Xfuels as well as the technology and service side of the business.
Mr. Michael McLaren stated, "With Charles at the helm of Cycle Oil & Gas and Cycle Energy Industries this frees up my time to focus on the technology for our up-and-coming rollout of out Blue Hydrogen Generation technology." He further stated, "The time is now, and we need to pull out all stops to get the pilot plant up and running in fastest and most efficient manner possible. As the Chief Scientist in the project and the inventor of the process my focus is needed here as well as Xfuels to move both Xfuels and our technology forward."
On July 14th, 2020 Cycle entered into a purchase agreement to buy all the issued and outstanding shares of Harvest Petroleum Inc. of Prosper Texas. Currently due to CO
VID-19 restrictions this is on hold until border crossings are possible.
Corporate Developments
The company continues to work on its financials and expect to be competed shortly. COVID-19 lockdowns and restrictions have compromised our previous targets however we continue to move forward on this even with the restrictions albeit slower than previously expected.
The company continues as well to work towards our green initiative to produce carbon neutral products as well as integrate solar and other renewable technologies into our daily operations.
Technology
Xfuels continues to develop its technologies and is pushing its Gas to Liquid development forward. Prior to developing a full GTL plant, the company has decided to focus on the reactor itself and pursue its applications with Blue Hydrogen development as announced on September 25th, 2020. The company expects to have a working scale pilot developed by mid to end of Summer 2021. The company will implement this pilot on one of Cycle Oil & Gas properties as a demonstration/production unit.
Cycle also continues to develop its oilfield intelligence technologies and have several projects that the company is pursuing based on that technology as well.
About Xfuels Inc.
Xfuels Inc. is a fully integrated energy company that products responsible products both traditional and renewable. Our continued focus on carbon footprint reduction and cutting-edge technologies not only benefit the environment and local communities but also add value to Xfuels bottom line.
Cycle Energy Services Cycle Energy Services owns and operates combo wireline-service rigs and Hydrovac Units. The focus of Cycle Energy Services is primarily end of life abandonment and reclamation of non-producing assets. The company excels by supplying fixed cost services via our custom rigs and equipment that results in reduced time onsite, faster rig in and rig out times as well as reduced number of vehicles onsite. Cycle's efficiencies reduce the amount of fuel burned to complete the abandonment and reduces the carbon footprint to abandon wells.
Cycle Energy Technologies provides both R&D capabilities as well as previously developed and licensed technologies that aid in increased production, reduced lifting, and operation costs as well as gas and oil field intelligence. Cycle Energy Technologies immediate focus our small-scale Blue Hydrogen production plants are scheduled to roll out mid to late summer 2021 our flag ship technology the mobile GTL (gas to liquid) system will roll out shortly after. This technology brings forth increased value to the group through Cycle's internal production of gas. The value is added by turning the gas into chemicals and C5+ hydrocarbons as a 3-4x multiple which is industry groundbreaking.
Cycle Oil and Gas Xfuels owns 40% of Cycle Oil & Gas through its ownership in Cycle Energy Industries Inc. Cycle Oil & Gas focuses on acquiring & optimizing underdeveloped oil & gas assets and employs in-house developed & licensed technologies to increase production, optimize performance & reduce costs. The company currently produces approximately 80 barrels/day of oil as well as several non-operational properties and GORRS (Gross Overriding Royalties).
Safe Harbor
This release contains statements that constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. These statements appear in a number of places in this release and include all statements that are not statements of historical fact regarding the intent, belief or current expectations of Cycle Energy Industries Inc., its directors or its officers with respect to, among other things: (i) financing plans; (ii) trends affecting its financial condition or results of operations; (iii) growth strategy and operating strategy. The words "may," "would," "will," "expect," "estimate," "can," "believe," "potential" and similar expressions and variations thereof are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond Cycle Energy Industries Inc.'s ability to control, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors. More information about the potential factors that could affect the business and financial results is and will be included in Cycle Energy Industries Inc.'s filings with the Securities and Exchange Commission.
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