SOURCE: XR Energy Inc.

June 12, 2014 10:15 ET

XR Energy, Inc. Completes Acquisition of Producing Oil Assets

IRVING, TX--(Marketwired - Jun 12, 2014) -  XR Energy, Inc. (OTCQB: XREG) is pleased to announce that the acquisition of 100% of the Common Shares of XR of Texas, Inc., ("XRT") making XR of Texas, Inc., a wholly owned subsidiary of XR Energy, Inc. has been completed effective, June 6, 2014.

XRT owns various Oil assets in the State of Texas. This acquisition was entered into on March 11, 2014 and announced with a 8K filing on March 24, 2014 in accordance with the Plan of Acquisition that the Company entered into on December 18, 2013 and announced with a 8K filing on December 24, 2013, the Company's intent to acquire these assets. 

Under the terms of the Acquisition Agreement, XREG has delivered to XRT, 30,000,000 newly issued shares in the name of XRT Shareholders in exchange for 100% of the XRT shares. Concurrently, the XREG controlling shareholder has delivered and assigned, and the transfer agent has cancelled, 19,000,000 shares registered in his name leaving a total of 33,818,800 Common shares issued and outstanding at closing. Under this structure, XREG now owns the following Oil Assets through its wholly owned operating subsidiary XR of Texas, Inc.

Chrane Leases: These Oil Producing Leases are located in Taylor County, Texas. The 480 acre Property consists of 5 existing wells on line with oil production from the Cooksand Formation at approximately a 3,000 foot depth. There are 4 Producing Wells (PDP), 1 non-producing wells, and undeveloped locations available for new drilling. There exists four additional probable behind pipe zones. The company intends to increase the production of these wells by doing an acid treatment on the wellbores.

Burnett Tidewater Lease: This Lease is located in Wichita County, Texas. The 400 acre Property consists of 23 existing wells with 2 on line with minimal current production from the shallow pay Gunsite Formation at depths of 480 to 1800 feet. There are 21 wells that are candidates for restoration via a waterflood stimulation program. 3 additional disposal wells are on site with a further 14 undeveloped locations available for new drilling.

Brown Snyder Lease: This Lease is located in Jones County, Texas. The 340 acre Property consist of 11 existing wells with 3 fully equipped with oil production from the Swastika Sand Formation at approximately a 2,800 foot depth. There are 5 wells that are candidates for uphole completion in new zones. Two disposal wells exist on site with further probable undeveloped locations available for new drilling.

"We are thankful that we have concluded all business matters related to this acquisition and have successfully transitioned to new management," stated David Taylor Secretary of XR Energy, Inc., who added, "We are excited to begin our well rework process and expand our energy lease portfolio through this public company."

About XR Energy

XR Energy is a well positioned 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 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, workover, waterflood, 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 cash flow and the value of the leases as well.

Forward-Looking Statements

Statements in this 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 products involve detailed proprietary and engineering knowledge and specific customer adoption criteria, hence factors that could cause actual results to be materially different include that we may be 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 as 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, 10-Q and 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) 325-8180
    Fax: (972) 929-2244
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