(TheNewswire)
Vancouver, BC - TheNewswire - January 20, 2023 - G2 Energy Corp. (CSE:GTOO ) ( FWB:UD9) (the " Company " or " G2 ") announces that it has received anotice of default from Cloudbreak Discovery PLC(" Cloudbreak ") to the Company and its subsidiary G2 Energy TX1, Inc.(" G2 TX1 ") regarding a default under Cloudbreak's US$2 millionsecured debenture (the " Debenture ") related to default in paymentof an interest installment, which was due December 31, 2022, amongother alleged defaults. Cloudbreak holds second ranking security overthe shares of G2 TX1 held by the Company. G2 TX1owns the Masten Unit oil and gas producing property located in Texas(the " MastenProject ").
Cloudbreak also alleged that G2 TX1 breached theDebenture for failure to pay ad valorem taxes on the Masten Project,which is not true because the taxes are not due until January 31.2023. Other alleged breaches relate to the Company's negative workingcapital and maximum debt. The Company is in discussions withCloudbreak regarding an extension of time for the interestpayment and other solutions, as well as bettercommunication going forward . To reduce itsworking capital deficit, Company is seeking to raise capital throughan equity or debt private placement.
Management is also in discussions with the sellers ofthe Masten Project (the " Sellers ") related to the situation with Cloudbreak and options to preventunnecessary enlargement of this issue. TheSellers provided G2 TX1 with US $1.6 million secured loan financing tofund a portion of the purchase price payable for the Masten Project.The Sellers were granted first ranking security over the property andassets comprised in the Masten Project.
On Behalf of the Board,
“ SlawekSmulewicz ”
Slawek Smulewicz
CEO
For further information, please contact
John Costigan
VP Corporate Development
O: +1 778 7754985
W: WWW.G2.ENERGY
About G2 EnergyCorp.
G2 Energy Corp. is a junior oil and gas producer listedon the CSE exchange. It's primary focus is to acquire and developadditional overlooked, low risk, high return opportunities in the oiland gas sector. G2's strategy is to obtain a portfolio of risk-managedproduction and development opportunities onshore, U.S.A. In May 2022,G2 acquired the Masten Unit in the Permian Basin, Texas. The MastenUnit is the Company's first producing asset. G2 is targeting top tierprojects with operating netbacks and infrastructure facilities whichwill fast track overall oil and gas production growth.
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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