Xfuels Inc. (OTCMKTS:XFLS) Stock Moves Up After Announcing New Acquisition

Xfuels Inc. (OTCMKTS:XFLS) was up 8% after announcing a letter of intent (LOI) to acquire 100% of Jubilee Explorations LLC’s common stock. Jubilee Exploration is a gas and oil production that owns 516 wells in ten counties across South Arkansas and North East Oklahoma.

Market Stats

On Monday, XFLS stock jumped 8.30% at $0.0248 with more than 3.52 million shares, compared to its average volume of 3.62 million shares. The stock has moved within a range of $0.0235 – 0.0320 after opening trading at $0.0250.

Enters Milestone LOI to Acquire 516 Oil and Gas Wells Across Oklahoma and Kansas

The acquisition will be the largest acquisition to date in the history of Xfuels.After finalizing the acquisition, Xfuels will now focus on expanding gas and oil production from the 142 core Jubilee wells in Nowata and Craig counties located in Oklahoma. The company expects to improve production from the wells to 2,500 MCFD in a year and over the next two years to 7,500 MCFD.

Interestingly, annual revenue from the wells could be translated from $4.5 million to $13.5 million should the natural gas market price remain around $5/MCF. Besides the revenue enhancement the company expects from the Jubilee acquisition, Xfuels also will enhance its balance sheet immediately after closing. Therefore, in the coming months, XFLS is worth watching.

Traders Corner

XFLS stock is trading below the 20-Day and 50-Day Moving averages of $0.0270 and $0.0357 respectively. Moreover, the stock is trading below the 200-Day moving average of $0.0399. The stock is down 29% in the past month.