SOURCE: XR Energy Inc.

February 17, 2015 18:08 ET

XR Energy Completes Phase 1 Rework Program

IRVING, TX--(Marketwired - Feb 17, 2015) - XR Energy, Inc., (OTCQB: XREG) is pleased to announce that the Company has restarted oil production on 2 of its wells after the successful completion of their phase 1 rework program.

The Company through its wholly owned operating subsidiary XR of Texas, Inc. conducted the planned re work program on their Chrane lease property located in Taylor County, Texas. The phase 1 program was a complete rework of 2 of the best candidate wells from existing wells on the lease. The rework consisted of a complete overhaul of the target wells included replacing all the tubing and rods, and installing a new down hole pump. The wells were then acid treated.

Akram Chaudhary, XR Energy's President and Chief Executive Officer, said "We are very pleased with the results of our re-work program so far. The wells are responding favorably and we are seeing a consistent production. We will have further comment on the increased production levels after the end of our first quarter."

The Company is planning a second phase and will rework two additional wells once these first two wells have stabilized. As previously reported, the company has a low cost of production model. The extensive rework program will result in lower maintenance cost as virtually all parts have been replace with new. The Company expects to achieve a $20-$22 per barrel cost of production.

The Chrane lease is a 400-acre producing property that consists of 5 existing wells with 2 new reworked wells now on line with oil production from the Cook Sand Formation at approximately a 3,000-foot depth.

About XR Energy

XR Energy is an independently registered publicly traded company (OTCBB: XREG) in the oil and gas industry. The focus of our business is to explore, develop, enhance and remediate multiple oil and gas properties that have proven available reserves, using and our state-of-the-art technologies and techniques. XR Energy is currently focused on various property assets in the State of Texas and is constantly looking to acquire new opportunities that fit our parameters through the enhanced production of existing properties with proven reserves. XR Energy has acquired several properties, with staged in plans for remediation, work over, water flood, and new drilling development programs and is planning further Oil property acquisitions. Our seasoned management team only chooses properties that can be enhanced by rework of the existing wells, thus increasing the company's ash flow and the value our lease for our shareholders.

Forward-Looking Statements

Statements in the press release that are not strictly historical in nature are forward-looking statements. These statements are only predictions based on current information and expectations and involve a number of risks and uncertainties. Forward-Looking statements in this release include that we are about to manufacture our products, we can compete in the energy storage business and our products will provide an energy storage solution to industry. The Company's product involve detailed proprietary and engineering knowledge and specific customer adoption criteria, hence factors that could cause actual results to be materially different include that will maybe unsuccessful in raising any additional capital needs that may arise; we may not have sufficient capital to develop, produce and deliver orders; orders that are placed may be cancelled; product may not perform as well expected; markets may not develop as quickly as anticipated or at all; or that the productive capacity of the company may not be large enough to handle market demand. Further, we are reliant on certain key employees who may leave the Company and we may be unable to protect or defend our intellectual property. Investors are cautioned against placing undue reliance on forward-looking statements. Refer to all public filings and risk factors included in the 8-K, and 10-Q 10-K as filed with the SEC.

Contact Information

  • For Further Information Contact:
    XR Energy, Inc.
    8411 Sterling Street, Suite 102
    Irving, TX 75063
    Telephone: (972) 929-4444
    Fax: (972) 929-2244
    Email: xreginc@gmail.com
    Visit our website at www.xrenergy.com