X Marks the Spot in Oklahoma

X Marks the Spot in Oklahoma

Snapping up underperforming oil and gas assets in Texas may have been the initial target for Xfuels to enter the biz from its native Alberta, but Okla., is soon to become the energy company’s first landing zone. Reese Energy Consulting today is following the latest announcement from Xfuels whose new U.S. subsidiary Cycle Oil and Gas has picked up 516 wells across 10 counties in northeast Okla., and southeast Kans. The stock-and-cash deal with Ardmore, Okla.-based Jubilee Exploration marks Xfuel’s largest acquisition to date and includes 375 pumping stations and a wide range of other equipment valued at $15 million. Most wells are currently low-producing or shut-in, making them ideal to leverage the company’s inhouse well services team and proprietary and licensed technologies to return distressed assets to profitability. First order of business will be to increase gas production from a cluster of 142 Jubilee wells in Okla., to 2.5 MMCFD within a year and 7.5 MMCFD in two. Xfuels expects to achieve revenues between $4.5 and $13.5 million from its Phase I development assuming a market price at or near $5 per MCF.

What do you think? Learn more about REC and our range of natural gas services and expertise at www.ReeseEnergyConsulting.com.

Xfuels Inc.

Xfuels, Inc. designs, builds, and operates regionally-integrated, small-to-midcap electricity and petroleum production facilities.
 

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More Tailwinds for Natural Gas

More Tailwinds for Natural Gas

Our Magic 8 Ball predicts one heckuva chill ride for U.S. gas producers ramping up output ahead of the heating season. Barely two weeks into November, production already has surged to 93.9 BCFD—on course to break October’s record and lead us into a winter that’s expected to lift volumes to more than 96 BCFD, shattering last year’s record high, pre-pandemic. Reese Energy Consulting today is studying the incredible verve happening right now for natural gas producers and midstreamers operating in the nation’s most gas-rich basins. The Marcellus is soon to enjoy an added 580 MMCFD of transportation capacity starting December when Transcontinental’s Leidy South expansion goes online. In the Haynesville, it’s all about flowing more gas to LNG export terminals where Cheniere’s Sabine Pass has already hit record highs this month of 4.4 BCFD, and Venture Global’s Calcasieu Pass trains 1 and 2 are nearing startup. Tulsa-based ONEOK has lifted its foot off the brakes to complete a 200 MMCFD gas processing facility in the Bakken and a 125 MBPD NGL fractionator in Mont Belvieu, Texas. In other words, it’s a dandy time to be in the gas biz.

What do you think? Learn more about REC’s natural gas services and expertise at www.ReeseEnergyConsulting.com.

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