Xfuels Inc. has reported on its joint venture progress. June sales for Area 2 Energy were US$58 525.00 with a summarised net operating income of US$38 842.75 before operating expenses. June sales were up 38% over May due to increased gas prices over the month. July and August sales looked promising as sales prices have hit highs of US$2.45/GJ and futures show a continuing uptrend though 2017 and 2018.
Converde and Xfuels are concentrating efforts to fund the capital plan to increase production through traditional debt financing. Michael McLaren states, "The increase in natural gas prices have been a welcome benefit for Xfuel's joint venture Area 2 Energy. A combination of hot summer temperatures and a smaller than expected inventory rise has boosted prices. The company continues to move forward on our business plan and expects increased revenue for both July and August and into the winter season."
The company continues manufacturing a demo 4 t system at its Didsbury location which will produce about 500 gal./d of fuel and chemicals and expects to begin testing by late October at the Area 2 Energy Atlee site. Engineers have been testing the reactor with Converde's newest proprietary plasma power supply and have been cycling the reactor up to temperature over the past few weeks.
Adapted from press release by Francesca Brindle