Xfuels Inc (XFLS)

[Jose Chavez]

Cycle Oil & Gas Inc. (Texas) has successfully transferred 10 of the 18 leases acquired from Triple S Gas & Ray Loveless Enterprises. The Form P-4s were recorded with the Texas Railroad Commission this month. The company will now focus its attention towards increasing daily production via a series of low-cost workovers on low hanging fruit throughout the field. The current producing leases have averaged approximately 10BPD since August 1st. The company expects to place its remaining financial assurance with the TXRCC and complete the transfer of the remaining 8 leases in November under Cycle Energy Services Inc. (Texas)