Lexington Energy Services Inc. (OTCBB: LXES)
-Multiple Revenue Streams and Strong Growth Anticipated in 2007-
CALGARY, March 13 /PRNewswire-FirstCall/ – Lexington Energy Services Inc. (OTCBB: LXES – News), a manufacturer of innovatively designed service equipment for the rapidly expanding oil and gas industry, announced today that its subsidiary Lexcore Services Inc. generated initial revenues of approximately $785,000 USD, resulting from its ongoing winter drilling season.
Lexcore provides oil and gas companies drilling services, including equipment rental and the sourcing of personnel to operate the equipment. The equipment is designed for use in a variety of drilling operations, including coring, geothermal, coal methane beds and shallow natural gas. This marks the onset of revenue generation at Lexington’s young drilling subsidiary, which is expected to shortly wind-down its winter drilling season in the oil sands. However, operations will continue year-round and Lexcore is anticipating consistent future revenue generation. As recently announced, Lexcore expects to continue to generate revenues through its newly signed agreement to provide equipment and services to Japan Canada Oil Sands Limited.
“This is a watershed operational and financial event for our company,” says Lexington Energy President Larry Kristof. “This new revenue stream, when added to the $628,000 USD we received last fiscal year from the sale of two mobile well testing units (p-tanks), totals over $1.4 million USD. With each of our three subsidiaries ramping up, negotiating new business contracts and engaging clients, I believe Lexington Energy Services will generate multiple growing streams of revenue in the current fiscal year.”
Mr. Kristof continued, “Not only are new revenue enhancing business opportunities coming online for us, we are exclusively focusing on high ‘Return on Investment’ projects, which we believe will greatly impact our financial performance and enhance shareholder value in the near term.”
Lexington recently completed the building of a nitrogen generation unit, and is currently in negotiations to lease out this equipment. Management believes the nitrogen generation unit differs in several ways from the closest comparably designed systems on the market, as the system is capable of producing a high level of purified nitrogen at 99.5%. In addition to the ability to generate a more pure nitrogen product, the other major comparative advantage involves the diesel-electric system that powers the units. Lexington is able to use a single diesel burning generator to provide electrical power to the system. Lexington’s design allows for fewer moving parts in the system, rendering a more efficient and reliable process, as compared to the traditional systems produced by competitors.
About Lexington Energy Services:
Lexington Energy Services Inc. is a publicly traded oil field service company (OTCBB:LXES – News). Through its three separate, wholly-owned subsidiaries, Lexington Energy manufactures innovatively designed service equipment for the rapidly expanding oil and gas industry.
Forward-Looking Statements
Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements. Actual results may differ materially from those described in forward-looking statements and are subject to risks and uncertainties. See Lexington Energy’s filings with the Securities and Exchange Commission, including, without limitation, Lexington Energy’s recent Form 10-KSB.
CONTACT: Company Contact: Mark Procknow, Corporate Communications, Lexington Energy Services Inc., (403) 279-4585, www.lexingtonenergyservices.com; Investor Contact: Gary Geraci, Equity Performance Group, (617) 723-2373, gary@equityperfgp.com, www.equityperformancegroup.com
Source: Lexington Energy Services Inc.
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