Shares have rebounded as crude oil prices rise in 2021, with more demand and extremely cold temperatures across North America. Brent crude oil prices recently hit more than $65 a barrel – the first time in more than 12 months.
The energy sector produces and supplies fuels and electricity for the global economy. It includes companies involved in the following activities:
- The upstream exploration and production of oil, natural gas, and related liquids (such as natural gas liquids, or NGLs).
- The midstream transportation, processing, and storage of natural gas and liquids.
- The downstream refining, marketing, and distribution of petroleum products.
- The mining and processing of coal, uranium, and bitumen (oil sands) used to generate electricity or make liquid fuels.
- The generation of electricity and the distribution of power and natural gas by utilities.
This broad industry is crucial to providing the economy with the energy it needs. It’s also an important one for investors to understand.
As the energy industry recover along with the economy, consider adding this stock to your portfolio.
Xfuels Inc. (OTC: XFLS) is a fully integrated energy company that products responsible products both traditional and renewable. Our continued focus on carbon footprint reduction and cutting-edge technologies not only benefit the environment and local communities but also add value to Xfuels bottom line.
Xfuels owns 40% of Cycle Oil & Gas through its ownership in Cycle Energy Industries Inc. Cycle Oil & Gas focuses on acquiring & optimizing underdeveloped oil & gas assets and employs in-house developed & licensed technologies to increase production, optimize performance & reduce costs. The company currently produces approximately 80 barrels/day of oil as well as several non-operational properties and GORRS (Gross Overriding Royalties).
The company announced yesterday that it has entered a letter of intent to purchase an incinerator plant and will be converting the plant into a Waste/Biomass to Combined Heat and Power solution.
The plant located in Bieseker, Alberta is currently set up as a medical waste incinerator. Cycle will utilize both in house and licensed technologies to retrofit the incinerator to a gasifier unit to produce a Combined Heat and Power solution as well as Waste Heat to Cold Storage to serve the local farming community.
The purchase price of the 18,678 square foot building, equipment and associated 3.78 acres is $C2,000,000. Xfuels will make a down payment of $C500,000 and the vendor will carry the balance of $C1,500,000 for the term of 5 years at a rate of 3.5% with a payment holiday for the first 18 months. The deal is scheduled to close on or before June 1st, 2021. In the interim, Xfuels has assumed the overhead expenses of the plant and begun the engineering of the incinerator retrofit onsite.
Mr. Michael McLaren states “I could not be happier taking the company back to its grass-roots and diversifying our company to be that full-service energy provider our team has worked hard to achieve. With traditional energy assets as well as green energy solutions we believe we have the winning solution looking forward into the future.” He further stated, “The companies focus of becoming a producer of Blue-Green Energy as coined by our engineering team will be finally realized.”
The retrofitted plant will produce approximately 2MW of electrical power production with room for expansion of further phases as well as process heat. The plants service is capable of 6MW back into the grid.
Xfuels also plans to build greenhouses on the adjacent 2.8 Acre lot. The company intends to utilize the greenhouses for Algae Production using the company’s Bioreactor Technology as well as commercial and community green house space.
The site will also be evaluated for Blue-Green Hydrogen and Gas to Liquids production should there be enough resources as well as receiving the appropriate local and provincial permitting. The Cycle Hydrocarbon Technologies Blue Hydrogen solution has been developed as a mobile platform for use in the field on underperforming and/or stranded assets. It is the company’s intent to further develop the technology into a larger stationary unit once we roll out the current platform.
The kind of volatility and momentum seen lately in XFLS shares isn’t unusual for a company who is in ENERGY related area. The company is a thinly traded OTC stock, meaning it is highly susceptible to volatile swings on more than average volume.
Any investor who avoided energy stocks over the past two months would be well served to take another look. Right now could well be the opportunity you’ve been waiting for. But if you wait until the money is rolling in, the share price will likely have already risen to reflect a more traditional valuation and the opportunity for huge gains will be gone.