Xfuels Inc. (OTCMKTS:XFLS) Signs LOI to Acquire Triple S Gas of Dallas, Texas
Xfuels Inc. (OTCMKTS:XFLS) announced on April 27, 2022, about executing a LOI with Triple S gas of Dallas, Texas, in an all-cash deal that covers 7 leases, 54 wells and 6 oil batteries in Wichita and Wilbarger counties. The keystone of the Xfuels enterprise is Cycle Oil and Gas.
Market Stats
On Wednesday, XFLS stock gained 2% to $0.0102 with more than 2.56 million shares, compared to its average volume of 2.28 million shares. The stock moved within a range of $0.0100 – 0.0115 after opening trading at $0.0102.
Xfuels Announces Milestone LOI to Acquire Triple S Gas of Dallas, Texas
Cycle is to pay $320,000, along with a 2.5 % capped ORRI to $250,000. Apart from the Triple S leases a neighboring producer has recovered 1.5 Million barrels of oil as well as 1 mmcf of gas in the same formations. Till date, Triple S gas has produced approximately 40,000 barrels from the properties and given the locations and well control in the area, Cycle believes this is only a fraction of the recoverable oil available.
It believes that deeper reserves are available too, which can be accessed by deepening the existing wellbores sans the extra cost of drilling a new well. Further research is to be conducted with Cycle’s in-house engineering team, after which the verification of these additional reserves, will be outsourced to a 3rd party report.
Mr. Michael McLaren, CEO, has commented that this acquisition is indeed a turning point as it marks their foray into Texas oil and gas production business. The team is eager to focus on the project and explore the potential of these leases. With their business strategy of Acquire, Restore, Produce and Consolidate, these leases are a perfect fit for their world class knowhow and stimulation technologies to maximize the potential of the production.
Key Quote
Mr. Michael McLaren, CEO states, “This acquisition is our milestone leap into Texas oil and gas production business and our team is eager to get focused on the project and push these leases to their maximum potential.” Mr. McLaren further states, “With our business strategy of Acquire, Restore, Produce and Consolidate these leases fit perfectly into that window where we can apply our world class knowhow and stimulation technologies to maximize the potential of the production.”
Traders Corner
XFLS stock is trading below the 20-Day and 50-Day Moving averages of $0.0142 and $0.0182 respectively. Moreover, the stock is trading below the 200-Day moving average of $0.0290.
