Calgary, Alberta, Oct. 05, 2021 (GLOBE NEWSWIRE) — Today, Xfuels Inc. (OTC Pink: XFLS), a Calgary-based energy company, announces its entry into the Texas energy market with the formation of a new Texas subsidiary, Cycle Oil and Gas Inc.
The first objective of Xfuels’ new subsidiary will be to acquire Texas-based oil and gas assets. Some of those assets include operations that have serviced some of the largest energy companies in the United States, including Shell Oil, PetroHawk Energy, and Merit Energy, among others.
Xfuels CEO Mike McLaren stated, “Texas represents a huge opportunity for us. Surprisingly, we have found a large number of underperforming assets in key areas within this state, which we believe can greatly accelerate our expansion plans.”
According to a recent report by the Federal Reserve Bank of Dallas, commercial Crude Oil Inventories within Texas have declined steadily since March of 2021. Current inventory levels seem to indicate that an increase in production within the state, and likely across the nation as a whole, will be necessary as the economy continues to recover post-pandemic.
As most people are well aware, Texas has a long and storied history as a major supplier of oil and gas within the United States. According to a study by Pricewaterhouse Coopers, Texas currently contributes over $411 billion to U.S. gross domestic product and supports over 2.5 million jobs within state lines. Xfuels believes that Texas’ prominent position in the oil and gas market will make it a good place to do business in the coming years as environmental regulations remain in flux.
CEO Mike McLaren further stated, “As an agile company, we always try to be forward-thinking and to take calculated risks. A move into Texas seems to make a lot of sense at this moment in time. With the pandemic hitting many of the smaller operators within this state particularly hard, we are finding acquisition targets that can produce a positive return almost immediately.”
Xfuels expects to continue to evaluate the landscape for distressed opportunities in Texas over the coming months as it aims to expand its presence in the United States.
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.
Xfuels trades in the United States Over the Counter Market under the symbol XFLS.
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