(TheNewswire)
Vancouver, B.C. - TheNewswire - October 25,2022 - G2 Energy Corp. (CSE:GTOO ) , (OTC:GTGEF), ( FKN:UD9) (the “ Company ” or “ G2 ”) announces thisn ews release is to make a correction to the newsrelease distributed on October 20th. The superseded news release says"maturity: final tranche," where it should have said"Maturity day: 24 months". Please see below for the fullNews Release
G2 PresidentDavid Whitby and COO James Tague haveput together a detailed plan to increase our actual production andgenerate long-term value for the shareholders.
G2’s six-month plan is focused on executing thefollowing:
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Increasing base production from the Masten Unit.
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Acquiring the Bridwell Oil Company’s Masten Lease(the “ Bridwell ”).
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Optimizing production from current producers and idlewells on the Bridwell and Masten leases.
Base production will be enhanced through a series ofwellbore cleanouts and hot oil treatments designed to remove scale andparaffin. This work is underway and is expected to increase MastenUnit base production by 25%. In conjunction with the wellborecleanouts, workovers designed to return four idle Masten Unit wells toproduction will be undertaken in the immediate future. These programsinclude tubing repairs, lift optimization and the recompletion ofseveral new productive oil and gas zones located higher up in thewellbore. Based on past production and nearby producers, this work isprojected to add 40-50 boepd. In addition, the implementation of anaggressive maintenance and production surveillance program will addsupplementary production.
The plan also includes optimizing and increasingproduction on the Bridwell acquisition (expected to close shortly).This will be accomplished by returning several idle wells to fullproduction and recompleting an upper gas zone that is currently unopen(behind pipe) in all of the Bridwell wells. This gas zone is veryprolific in the area but has not been produced from this lease.
The expected total increase in production, after thissix-month program is finished, is estimated to be around 197 BOEPDwhich is more than 200% from the existing production level. Thisproduction would generate monthly revenue of around US$432,000 and anestimated six-month total revenue of about $2,000,000, at $80 oil and$6 natural gas. Jim Tague commented: “This program is very achievable and allof our targets are based on actual performance of previous workoversand analog production from adjacent wells. Overall risk is very low,and return on investment will be high”
The total estimated cost of the well work will bearound US$700,000 and the acquisition cost of the Bridwell includingthe closing costs will be US$230,000.
G2 would like toannounce a non-brokered convertible debenture private placementfinancing to finance the six-month plan and working capital of theCompany. Terms of the Financing are:
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Private Placement Amount: US$1,000,000
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Maturity day: 24months
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Interest: 12% per annum payable every sixmonths
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Conversion Price: C$0.10 first 12 months, C$0.20 second 12months
Dave Whitby commented: “ The strategy that we have put in place isto acquire assets that have near-term optimization potential withproduction that can be increased at least 2-fold in the first sixmonths in order to generate a balance between cashflow and growth forour shareholders. The six-month plan will deliver transformationalresults that can be duplicated on our next acquisition”
After reviewing the plan, Slawek Smulewicz commented:“ This is just the beginningof our optimization program, it achieves the goals set for our companywhile significantly increasing current production and improvingROI .”
On Behalf of the Board,
“ SlawekSmulewicz ”
Slawek Smulewicz, CEO
For further information, please contact:
John Costigan, VP CorporateDevelopment
O: +1 778 775 4985, C: +1 604 620 8689
E: info@g2.energy W: WWW.G2.ENERGY
About G2 EnergyCorp.
G2 Energy Corp. is a profitable junior oil and gasproducer listed on the CSE exchange. It's primary focus is to acquireand develop additional overlooked, low risk, high return opportunitiesin the oil and gas sector. G2's strategy is to obtain a portfolio ofrisk-managed production and development opportunities onshore, U.S.A.In May 2022, G2 acquired the Masten Unit in the Permian Basin, Texas.The Masten Unit is the Company's first producing asset. G2 istargeting top tier projects with operating netbacks and infrastructurefacilities which will fast track overall oil and gas productiongrowth.
The Canadian Securities Exchange hasneither approved nor disapproved the information containedherein.
Forward Looking StatementsCaution
Statements in this press releaseregarding the Company which are not historical facts are“forward-looking statements” that involve risks and uncertainties.Such information can generally be identified by the use offorwarding-looking wording such as “may”, “expect”,“estimate”, “anticipate”, “intend”, “believe” and“continue” or the negative thereof or similar variations. Sinceforward-looking statements address future events and conditions, bytheir very nature, they involve inherent risks and uncertainties. The Company providesforward-looking statements for the purpose of conveying informationabout current expectations and plans relating to the future,including expectations forthe effects of the change of business of G2 to oil andgas, and readers arecautioned that such statements may not be appropriate for otherpurposes. By its nature, this information is subject to inherent risksand uncertainties that may be general or specific and which give riseto the possibility that expectations, forecasts, predictions,projections or conclusions may not prove to be accurate, thatassumptions may not be correct and that objectives, strategic goalsand priorities may not be achieved. These risks and uncertaintiesinclude but are not limited those identified and reported in theCompany’s public filings under the Company’s SEDAR profile atwww.sedar.com. Statementsrelating to “reserves” are also deemed to be forward-lookingstatements, as they involve the implied assessment, based on certainestimates and assumptions, that the reserves described exist in thequantities predicted or estimated and that the reserves can beprofitably produced in the future. Actual results could differ materiallyfrom those currently anticipated due to factors such as: the performance of wells, the availabilityand performance of facilities and pipelines, the geologicalcharacteristics of G2's properties, prevailing weather and break-upconditions, commodity prices, price volatility, price differentialsand the actual prices received for the Company’s products, royaltyregimes and exchange rates, the application of regulatory andlicensing requirements, the availability of capital, labour andservices, the creditworthiness of industry partners, and G2’sability to acquire additional assets. Although the Company has attempted toidentify important factors that could cause actual actions, events orresults to differ materially from those described in forward-lookinginformation, there may be other factors that cause actions, events orresults not to be as anticipated, estimated or intended. There can beno assurance that such information will prove to be accurate as actualresults and future events could differ materially.
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