Xfuels Enters Milestone LOI to Acquire 516 Oil and Gas Wells Across Oklahoma and Kansas
$XFLS - Xfuels Enters Milestone LOI to Acquire 516 Oil and Gas Wells Across Oklahoma and Kansas
All of the Oklahoma Jubilee wells to be acquired by Xfuels
$XFLS - Xfuels Enters Milestone LOI to Acquire 516 Oil and Gas Wells Across Oklahoma and Kansas
Focus area wells for “Phase 1” post-acquisition
Calgary, Alberta, Nov. 29, 2021 (GLOBE NEWSWIRE) -- Xfuels, Inc. (OTC PINK: XFLS) has entered a letter of intent to purchase 100% of the common stock of Jubilee Exploration, LLC, an oil and gas producer that currently controls 516 wells across 10 counties in North East Oklahoma and South East Kansas. This will mark the largest acquisition in Xfuels’ history.
Post-acquisition, Xfuels plans to focus on increasing oil and gas production from a core group of 142 Jubilee wells located in Craig and Nowata counties in Oklahoma. Xfuels expects that production from these wells could be improved to 2,500 MCFD within one year, and over 7,500 MCFD within two years. Annual revenue from these wells could therefore translate to $4,500,000 - $13,500,000, assuming the market price for natural gas remains at or near $5/MCF.
Separate and apart from the revenue enhancement that Xfuels expects to realize in the coming years from the Jubilee purchase, the company also stands to bolster its balance sheet immediately upon closing.
Specifically, Xfuels will be taking over 375 pumping units along with a wide range of other machinery and equipment that was appraised for over $15,000,000 at fair market value in 2018 by Expert Equipment Appraisal LLC.
“The Jubilee acquisition will mark a major milestone for us as we enter the US market,” said Mike McLaren, CEO of Xfuels. “We plan to add considerable volume to Jubilee’s current production by applying the same expertise and technology that has served us well in Canada.”
While many of the oil and gas assets in the Jubilee portfolio are now low producing or shut in, Xfuels expects to use Plasma Pulse Technology, along with other leading-edge extraction tools, to bring strategically targeted wells back to life.
Xfuels will be acquiring Jubilee as a wholly owned subsidiary in exchange for 8,000,000 shares of its common stock and $100,000 in cash consideration with conditions, along with a 2.5% gross overriding royalty interest (“GOR”). The GOR will be capped at $1,500,000 and will be payable on all petroleum, natural gas liquids and natural gas mineral interests produced by the wells included in the purchase.
ABOUT XFUELS
XFuels Inc. (OTC Pink: XFLS) is a diversified energy company based in the province of Alberta, Canada. 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. 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.
To learn more about Xfuels, please visit cyclenrgy.com or on Twitter at https://twitter.com/XFUELSI
Xfuels trades in the United States Over the Counter Market under the symbol XFLS.
Safe Harbor Statement
This news release contains "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, that are intended to be covered by the "safe harbor" created by those sections. Forward-looking statements, which are based on certain assumptions and describe our future plans, strategies and expectations, can generally be identified by the use of forward-looking terms such as "believe," "expect," "may," "will," "should," "could," "seek," "intend," "plan," "goal," "estimate," "anticipate" or other comparable terms. All statements other than statements of historical facts included in this news release regarding our strategies, prospects, financial condition, operations, costs, plans and objectives are forward-looking statements. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: our ability to successfully market our products and services; the acceptance of our products and services by customers; our continued ability to pay operating costs and ability to meet demand for our products and services; the amount and nature of competition from other oil and gas companies; the effects of changes in the energy and financial markets; our ability to successfully develop new products and services; our success establishing and maintaining collaborative, strategic alliance agreements, licensing and supplier arrangements; our ability to comply with applicable regulations; and the other risks and uncertainties described in our prior filings with the Securities and Exchange Commission. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.
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$XFLS - Xfuels Enters Milestone LOI to Acquire 516 Oil and Gas Wells Across Oklahoma and Kansas
$XFLS - Xfuels Enters Milestone LOI to Acquire 516 Oil and Gas Wells Across Oklahoma and Kansas
