Xfuels announces Cycle Oil & Gas Inc. Operational update
Cycle Oil & Gas contracted OAG Consulting Inc. of Fort Wort, Texas to conduct due diligence prior to purchase & manage their Texas operations after the purchase and sale agreement was completed.
Electra, Texas, Dec. 02, 2022 (GLOBE NEWSWIRE) -- Xfuels Inc. (OTC PINK: XFLS) is pleased to report that Cycle Oil & Gas began overseeing operations in their Wichita County field effectively on July 1st, 2022, through the purchase of leases & property from Triple “S” Gas & Ray Loveless Enterprises. Cycle Oil & Gas contracted OAG Consulting Inc. of Fort Wort, Texas to conduct due diligence prior to purchase & manage their Texas operations after the purchase and sale agreement was completed. When Cycle was handed operational duties, they were met with a variety of challenges from the distressed assets. Production across all 17 leases was ~7bpd with most of the wells labeled “inactive” or “shut-in” by the TXRRC’s standards.
Josh Miller (OAG) and the lease operators spent the months of July & August mitigating issues across the leases to increase runtime & reliability of their electrical infrastructure. Many of the properties had environmental concerns and time was spent on remediation to make sure the producing leases stayed within compliance with regulators at TXRRC. Cycle repaired multiple injection line leaks on their highest producing lease (Burnett) and weatherized electrical panels to allow for full capacity run time. Through these fixes, Cycle was able to increase production on this lease from 128bbls (4bpd) in August to 255bbls (8bpd) in September and have averaged 7.5bpd in the following months.
Cycle currently has workovers planned for 5 shallow wells on its Burnett Gulf lease in December. Cycle believes that these wells simply need pump changes, which are a quick and inexpensive fix that should yield an additional 8-10bpd in production. Cycle will continue working over wells on a lease-by-lease basis until all 17 leases are operational.
Cycle currently averages 12.5bpd as of Dec 1st, producing from 15 active wells. The company has continued to identify repairs that can increase production while being cost effective. Cycle also benefits from not having the added cost of hauling produced water off its leases for disposal and instead is able to inject produced water into their own injection wells. This allows for higher profit margins from production. To date; Cycle has increased monthly production from 231bbls per month in July & August, to an average of 345bbls per month since and is continuing to increase on a monthly basis. Cycle currently has over 125 shallow wells available to bring back into production through workovers and facility maintenance.
About Josh Miller OAG Consulting inc. - Operations Texas.
Josh has over 12 years of experience in oil & gas production, construction, maintenance, and environmental controls, having built a successful consulting career working with multiple large E&P’s in both the Bakken (ND) & Permian (TX) basins. His background includes extensive experience in facility construction, facility maintenance, emission, and regulatory implementation. Josh has a long history of field management & leadership experience and has been instrumental in getting Cycles operations started in the U.S.
About Xfuels Inc.
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 costs.
The second business unit 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 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.
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.
To learn more about Cycle Oil & Gas, please visit:
https://www.linkedin.com/company/cycle-oil-gas-inc/
Media Contact:
Michael McLaren
Attachments
- Xfuels announces Cycle Oil & Gas Inc. Operational update
- Xfuels announces Cycle Oil & Gas Inc. Operational update
- Xfuels announces Cycle Oil & Gas Inc. Operational update
