IRVING, TX--(Marketwired - Aug 14, 2014) - XR Energy, Inc. (OTCQB: XREG) is pleased to announce that the Company has begun to implement, through its wholly owned operating subsidiary XR of Texas, Inc, a planned rework program on their Chrane lease property located in Taylor County, Texas. The Company expects Oil production on the Chrane lease to increase after successful completion of the rework program.
The rework program consists of replacing rods, tubing and down hole pumps in the wells and adding a new pump jack for 1 well. The wells will all then be acid treated. The Company is currently sourcing the tubing and rods for acquisition and scheduling a rig to do the rework.
"Our timing on completing the acquisition of these wells and beginning the rework program was spot on," said David Taylor, XR Energy's Chief Financial Officer, who added, "We experienced a decline in production in July due to mechanical failures of the worn out rods, so replacing them and updating the field combined with a acid treatment at the same time the wells are pulled makes this combined work most economical and should yield to us a increase in the production."
The Chrane lease is a producing property that consists of 5 existing wells with 4 producing from the Cooksand Formation at approximately at 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. 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, which it plans for remediation, workover, waterflood, and new development programs and is planning further Oil property acquisitions. Our management only seeks properties that can be enhanced by rework of the existing wells, thus increasing the company's cash flow and the value the leases.
This release contains statements that constitute 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. These statements appear in a number of places in this release and include all statements that are not statements of historical fact regarding the intent, belief or current expectations of XR Energy, Inc., its directors or its officers with respect to, among other things: (i) financing plans; (ii) trends affecting its financial condition or results of operations; (iii) growth strategy and operating strategy. The words "may," "would," "will," "expect," "estimate," "can," "believe," "potential" and similar expressions and variations thereof are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond XR Energy, Inc.'s ability to control, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors. More information about the potential factors that could affect the business and financial results is and will be included in XR Energy, Inc.'s, filings with the Securities and Exchange Commission.