SOURCE: XR Energy Inc.

December 16, 2014 08:00 ET

XR Energy, Inc. Reports Profitability Achievable Even if Oil Price Drops Below $40 a Barrel From Oil Well Re-Work Strategy

IRVING, TX--(Marketwired - Dec 16, 2014) - XR Energy, Inc., (OTCQB: XREG) -- reported today that the Company can still achieve profitability even if Oil were to drop below $40 a barrel. The Company is focused on re-working existing Oil wells and additional conventional well development on proven properties rather than exploration.

In a published interview with Young Capital Management founder Josh Young done by The Energy Report, Young explains how Redevelopment Plays provide high returns from Re-Working old wells. The interview discusses the benefits of investing in a strategy that is based on Re-Working old wells. There is less risk in developing known past producing oil fields. There is known well data and the risk of drilling and cost is eliminated.

"XR Energy is working with existing wells and as such our costs are much lower", said XR Energy's CEO Akram Chaudhary, who further said, "At $70 a barrel our lifting costs are about 30% to 35%, even at $40 a barrel we can still have a profit. The previous price of a $100 plus a barrel makes our profit potential even much higher"

About XR Energy

XR Energy is a 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 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, 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 our leases for our shareholders.

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)929-4444
    Fax: (972)929-2244