IRVING, Texas, Dec. 17, 2015 /PRNewswire/ -- XR Energy, Inc., (OTC: XREG) is pleased to announce that the Company has entered an agreement to purchase an oil servicing company.
Throughout 2015, XR Energy has relied on its base production with limited oil shipped during the second and third quarters of the year, primarily due to oil price fluctuation. The Company is holding inventory while awaiting a stabilization of commodity pricing. In order to reduce oil lifting costs, the Company has agreed to purchase an existing oil servicing company. The acquisition will provide a service rig, as well as other equipment and personnel for the Company to maintain its leases. Additionally, the acquisition will create a further source of revenue for the Company as it enables the Company to perform servicing work for other leaseholders. The company anticipates closing this transaction during January of 2016.
David Taylor, XR Energy's Secretary and CFO, said "We are excited with the servicing acquisition as it will enable us to reduce our cost of production even further as well as provide a new source of more continuous revenue for the Company. We look forward to an improving oil price environment in 2016."
About XR Energy
XR Energy is an independently registered publicly traded company (OTC: 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 cash flow and the value of our lease for our shareholders.
This press release contains forward-looking statements. Words such as "expects", "intends'', "believes'', and similar expressions reflecting something other than historical fact are intended to identify forward-looking statements, but are not the exclusive means of identifying such statements. These forward-looking statements involve a number of risks and uncertainties, including the timely development and market acceptance of products and technologies, the ability to secure additional sources of finance, the ability to reduce operating expenses, and other factors described in the Company's filings with the OTC Markets Group. The actual results that the Company achieves may differ materially from any forward-looking statement due to such risks and uncertainties. The Company undertakes no obligation to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release.
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SOURCE XR Energy, Inc.