Business
Xfuels Enters Milestone LOI to Acquire 516 Oil and Gas Wells Across Oklahoma and Kansas
Xfuels Enters Milestone LOI to Acquire 516 Oil and Gas Wells Across Oklahoma and Kansas.
About this update from Xfuels Inc.
[{"type":"text","content":"\n 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 Alber...