CALGARY, Alberta, July 21, 2020 /PRNewswire/ -- Cycle Energy Industries Inc. (OTC: XFLS) is pleased to report the following Shareholder update.
On June 8th 2020, Xfuels purchased all the issued and outstanding shares of Cycle Energy Industries Ltd. The acquisition is now complete, and the company has been acquired by Xfuels and subsequent name and symbol change has been submitted to FINRA for approval.
On June 16th 2020, Cycle Energy announced it has increased its well abandonment fleet by the purchase of 3 new heavy vehicles to add to the companies abilities to execute workflow simultaneously. Cycle's proprietary technology is currently being implemented on the new vehicles and will be ready for deployment in early August.
On June 29th, 2020, Cycle Energy announced it has entered into a purchase agreement to buy 60% of Harvest Energy Northwest Lost Hills asset in California. Cycle purchased the majority working interest partner. To date, the shut in wells are being brought online and Cycle is working with US and Canadian government authorities to schedule when Cycle Energy Services can deploy its equipment to bring on the remaining workover projects as well as evaluate new drilling opportunities. Cycle is maximizing producing wells while implementing production increasing technologies.
On July 14th, 2020, Cycle entered into a purchase agreement to buy all the issued and outstanding shares of Harvest Petroleum Inc. of Prosper Texas. Currently, we are working with Harvest integrating procedures are being accomplished to move production online as well as find further acquisitions candidates in our license areas. With the purchase of Harvest Cycle now becomes 100% owner of the North West Lost Hills field and will focus capital to develop that asset out as a priority.
Cycle continues to develop its mobile GTL (Gas to Liquid) system and is presently in negotiations to deploy the first pilot plan here in Alberta. The pilot system will produce approximately 5 metric tons (approximately 1320 gallons) of C5+ hydrocarbons plus Fischer Tropsch wax. FT synthetic waxes are made using carbon monoxide and hydrogen as feedstock, producing hydrocarbons of consistently high purity and quality creating a very high value product on the average of /m3. The structure of the wax results in many desirable properties and is often used in hot melt adhesives, printing inks and coatings, polymer processing and polishes and textiles. The system will be used as a pilot to determine follow-on larger systems in both the US and Canada.
The company continues to work on its audited financials and registration statement and expect to be competed and filed by the end of August.
Cycle Energy is a fully integrated energy company that products responsible products both traditional and renewable. Our continued focus on carbon footprint reduction and streamlined oil and gas production not only benefit the environment and local communities but also add value to Cycle bottom line.
Through our 100% owned subsidiaries Harvest Petroleum and Hillsdale Drilling Cycle Energy Industries is now a licensed bonded operator in Alberta, Saskatchewan, California, Texas and Louisiana. Cycle expects over there next year to further expand our asset base in these areas.
The company continues as well to work towards our green initiative to produce carbon neutral products as well as integrate solar and other renewable technologies into our daily oil and gas production operations.
About Cycle Energy Industries
Cycle Energy Industries is a Canadian corporation based in the province of Alberta, and a unique energy provider that operates three vertically integrated business units in the WCSB (Western Canadian Sedimentary Basin). We have created a vertically integrated company where each subsidiary creates value and adds support to the other.
Cycle Oil and Gas focuses on acquiring & optimizing underdeveloped oil & gas assets and employs in-house developed & licensed technologies to increase production, optimize performance & reduce costs. The company currently produces approximately 100 barrels/day of oil as well as several non-operational properties and GORRS(Gross Overriding Royalties).
Cycle Energy Services supports our Exploration and Production (E&P) team with well services and end of life reclamation which gives the E&P company an unprecedented advantage over its competitors. This business plan excels by providing services that would otherwise be too costly and not financially viable for specific workovers or turn around projects. Cycle Energy Services owns and operates combo wireline-service rigs and Hydrovac Units. The focus of Cycle Energy Services is primarily end of life abandonment and reclamation of non-producing assets. The company excels by supplying fixed cost services via our custom rigs and equipment that results in reduced time onsite, faster rig in and rig out times as well as reduced number of vehicles onsite. Cycle's efficiencies reduce the amount of fuel burned to complete the abandonment and reduces the carbon footprint to abandon wells.
Cycle Energy Technologies provides both R&D capabilities as well as previously developed and licensed technologies that aid in increased production, reduced lifting and operation costs as well as gas and oil field intelligence. Cycle Energy Technologies flag ship technology is our mobile GTL (gas to liquid) system we have been developing and are currently implementing. This technology brings forth increased value to the group through Cycle's internal production of gas. The value is added by turning the gas into chemicals and C5+ hydrocarbons as a 3-4x multiple which is industry groundbreaking.
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 Cycle Energy Industries 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 Cycle Energy Industries 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 Cycle Energy Industries Inc.'s filings with the Securities and Exchange Commission.
SOURCE Cycle Energy Industries Inc.