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.”