Cycle Energy Industries Inc. agreed to acquire Xfuels Inc. in a reverse merger transaction for CAD 5 million.

Xfuels Inc. is a Canada-based diversified energy company. The Company operates three vertically integrated businesses such as Cycle Oil and Gas, Cycle Energy Services, and Cycle Energy Technologies. Cycle Oil and Gas is a wholly owned subsidiary, which is focused on acquiring and optimizing underdeveloped oil and gas assets. Cycle Oil and Gas produces approximately 110 barrels of oil per day from Canadian properties. It also holds oil and gas royalty positions and controls non-operating oil and gas properties. Cycle Energy Services is a wholly owned subsidiary that supports the Company's exploration and production efforts. Cycle Energy Services owns and operates a combination of customized wireline-service rigs and HydroVac units. Cycle Energy Technologies is a wholly owned subsidiary that provides both research and development (R&D) and technology to enable production in the field. The Company's flagship intellectual property is its mobile gas to liquid system.