Disclosure NewswireTMiCrowdNewswire - Sep 14, 2016
PHOENIX, AZ – Lithium Exploration Group Inc. (OTCPINK: LEXG) CEO Alex Walsh updates shareholders on company activities.
I will simplify this letter by breaking it out into clearly-defined sections that you can read and digest. We are officially embarking on new territory for our company and I want to give as comprehensive an update as I possibly can with this impersonal form of communication. We are excited about what we have been able to accomplish over the past few months and are looking forward to this new chapter in the company history.
On Friday of last week, we made a deposit for the drilling of an oil well in McKean County, PA. The final installment for the well will go out this Friday. This week, they are making final preparations to the site and booking all of the sub-contractors required to perform the drilling and completion work. The goal is to initiate drilling next week. We are excited about the opportunity to enter the oil and gas industry at these prices. Our ‘big picture’ plan is to be able to scale this side of our business to acquire interests in these types of smaller fields that are not profitable at current oil prices and provide tremendous upside when oil prices rise over time. The size of this initiative is unknown today but we will acquire as many of these opportunities as we can until oil prices stabilize over $55 per barrel.
Testing of Oil Unit:
We finalized the preparation of the oil unit today here in Houston, TX, and have a load of oil arriving tomorrow morning and are ready to immediately begin our testing program on the Son Cav oil unit. This oil is a bit heavier than the oil we tested before Labor Day, so we are excited to see the results we will get. We have also made some modifications to the circulation to allow for greater volumes through the system, which will give us the opportunity to get more run time on the unit this week.
We are still in the process analysis and data collection phase but, ultimately, we want to be able to bring out an independent engineering firm to certify all of the run times and performance data to share with our shareholders and potential Son Cav oil unit customers.
Last week we also entered into agreements to repurchase a number of outstanding notes so that we have fewer debt holders in the company. The goal with this effort is to have debt obligations with firms that have a long-term view of what we are trying to accomplish and will support us while we are executing, and be patient and flexible. We are turning a corner now and need to have engaged partners, not just financial partners.
The Son Cav oil unit has the ability to change the way small independent oil operators manage their fields and sell their oil. I would compare this to an agricultural technology that has the ability to take a crop after it has been picked and improve the yield and thus the revenue. The beauty of the application though is that the farmer (in this example) always knows what his yield will be and we are giving him the ability to make his ‘farm’ more valuable just by using the oil unit.
The technology’s target market is not huge companies that have spent billions on infrastructure to treat their oil production. The target is the thousands of smaller operators that have a multitude of small fields that need help to improve the quality of their saleable oil. The efforts that we have made as a company to get to here are enough to write more than one memoir but they have been worth it and will provide long term stability and growth that shareholders are looking for.
Thank you for your continued support.
Lithium Exploration Group
About Lithium Exploration Group
Lithium Exploration Group is a US-based exploration and development company focused on the acquisition and development potential of lithium brines and other precious metals that demonstrate high probability for near-term production. Currently the company is focused testing its Ultrasonic Generator Technology and the acquisition of oil and gas related assets in Western Canada. Lithium Exploration Group is traded on the OTCPINK under the symbol LEXG. Website:www.lithiumexplorationgroup.com.
Safe Harbor Statement
This news release contains “forward-looking statements”. Statements in this press release that are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future testing of the ultrasonic technology.
Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with mineral exploration and difficulties associated with obtaining financing on acceptable terms. We are not in control of lithium prices and these could vary to make development uneconomic. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements.
Although we believe that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our most recent annual report for our last fiscal year, our quarterly reports, and other periodic reports filed from time-to-time with the Securities and Exchange Commission.