NORTHRIDGE, Calif., May 19, 2011 /PRNewswire/ -- XnE, Inc. (Pink Sheets: XNEZ) today announced the Phase I work plan of Doshier Project as agreed with PEMCO, its operator for its oil properties. The Doshier Project is located in Nowata County, Oklahoma and covers approximately 80 acres. The Company's preliminary estimation of average recovery rate in Nowata County is roughly up to 3,500 barrels per acre. Nowata County is located in the Central Oklahoma platform, where it merges with the Cherokee basin of southeastern Kansas, in which some of the first commercial oil discoveries for the mid-continent region were made.
The Phase I work plan includes intra-structure development activities such as upgrade of electrical works, maintenance of pumping units, replacement of oil water separator, reconditioning of berm, and installation of fence, stairs and catwalk supports. The Company will also carry out critical rework on preparation and testing of oil wells. These pre-commissioning activities will include but are not limited to acid wash of well bore and perforations, performance testing of each well, and pulling water samples for testing of corrosion.
At the end of Phase I, the Company intends to meet all Oklahoma Corporation Commission standards for its facility, address any outstanding environmental concerns, and meet necessary electrical codes requirements. Subsequently, the Company anticipates bringing up to eight (8) wells into production.
Oklahoma is a strategic location for Company's growth strategy as it has been a historically prolific producer of oil and gas and currently has over 83,000 oil wells and 43,000 gas wells producing annually more than 59 million barrels of oil and 1.6 billion Mcf of natural gas, respectively. The domestic proved reserves of crude oil increased by 9 percent to 22.3 billion barrels in 2009 (Source: EIA). These increases demonstrate the strength of the energy market and the role for domestic natural gas and crude oil in meeting both current and projected U.S. energy demands.
"This announcement of Phase I of Doshier Project shows the commitment of the Company in acquiring and developing oil properties in Oklahoma. We intend to leverage on our local area knowledge and technical expertise to acquire oil leases that are undervalued and to bring these wells into production in a cost effective manner. Going forward, we believe that this strategy will improve our balance sheet and provide cash flow for our growth plans while continuously increasing shareholder value," commented Imran Firoz, President of XnE, Inc.
About the Company
XnE, Inc. is a domestic onshore oil and gas acquisition corporation based in Northridge, California which is engaged in acquisition, development, and production of oil and gas properties in the United States. XnE is committed to grow its current production rate by implementing an aggressive acquisition strategy that is based on a positive outlook in the oil and gas sector and finding opportunistic deals with mineral owners.
Forward-Looking Statement
Any statements made in this press release which are not historical facts contain certain forward-looking statements; as such term is defined in the Private Security Litigation Reform Act of 1995, concerning potential developments affecting the business, prospects, financial condition and other aspects of the company to which this release pertains. The actual results of the specific items described in this release, and the company's operations generally, may differ materially from what is projected in such forward-looking statements. Although such statements are based upon the best judgments of management of the company as of the date of this release, significant deviations in magnitude, timing and other factors may result from business risks and uncertainties including, without limitation, the company's dependence on third parties, general market and economic conditions, technical factors, the availability of outside capital, receipt of revenues and other factors, many of which are beyond the control of the company. The company disclaims any obligation to update information contained in any forward-looking statement. This press release shall not be deemed a general solicitation.
Contact:
Imran Firoz, President
XnE Inc.
T: +1 818.300.5792, F: +1 818.975.5775, E: [email protected]
SOURCE XnE, Inc.
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