(TheNewswire)
Vancouver, B C - TheNewswire - March 15, 2023 - G2 Energy Corp. (CSE:GTOO ) ( FWB:UD9) (the " Company " or " G2 ") announces today that, further to thenews release dated January 20, 2023 regarding a notice of default, ithas received a notice of foreclosure (the " Notice ") fromCloudbreak Discovery PLC (" Cloudbreak ") to the Company and itssubsidiary G2 Energy TX1, Inc. (" G2 TX1 ")regarding an alleged default under Cloudbreak's US$2 million secureddebenture (the " Debenture ").
Cloudbreak alleges there have been a number of defaultsin respect of the Debenture. The first relates to the delayed paymentof the Fourth Quarter End Installment payment which was due December31, 2022. G2 currently has the monies in trust to pay the FourthQuarter End Installment payment such that it can cure this default.Cloudbreak refuses to accept payment and maintains the position thatthe Company is in default.
The second alleged default relates to the payment of advalorem taxes and related matters on the Masten Unit oil and gasproducing property located in Texas (the " Masten Project "). The Masten Project is owned by the Company'ssubsidiary G2 TX1. The ad velorem taxes were paid by RMB Operating LLC(" RMB ") on behalf of G2. The Company has sought clarity onthe amounts allegedly owing to RMB and related matters in respect ofthe parties' ongoing working relationship, and has communicated to RMBthat the Company is in a position to address all matters and hasoffered to do so.
The final alleged breach relates to the Company'salleged negative working capital. G2 disagrees with Cloudbreak'sinterpretation of the Debenture's terms and denies exceeding thepermitted working capital thresholds.
RMB similarly alleges that the Company is in default ofcertain obligations owed to RMB, as operator of the Masten Project,including the Company's indebtedness to RMB and the Company's failureto maintain liability insurance. The Company hasadvised RMB that it is in a position to discuss and address anyconcerns, to the extent it is legally required to do so; however, theCompany is waiting on a response and additional requested informationfrom RMB.
The Company continues to raise capital in addition tocapital recently secured by the Company. Furtherto the news release dated January 4, 2023, the Company is conductingan ongoing non-brokered private placement for gross proceeds of up toCAD$1,500,000.
The Company is actively taking steps to address itscreditors' concerns and has engaged Canadian and Texas legal counselto assist with these matters. The Company continues to seek to engagein discussions with Cloudbreak and RMB. The Company continues tomaintain the position that what it views as the outstanding paymentamounts, together with any outstanding interest, as well as the legalfees incurred by Cloudbreak and RMB, are readily available.
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 is a junior oil and gas producer listed on the CSEexchange. It's primary focus is to acquire and develop additionaloverlooked, low risk, high return opportunities in the oil and gassector. 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. TheCompany provides forward-looking statements for the purpose ofconveying information about current expectations and plans relating tothe future, including expectations regarding the Company's ability tomeet its outstanding obligations, and readers are cautioned that suchstatements may not be appropriate for other purposes. By its nature,this information is subject to inherent risks and uncertainties thatmay be general or specific and which give rise to the possibility thatexpectations, forecasts, predictions, projections or conclusions maynot prove to be accurate, that assumptions may not be correct and thatobjectives, strategic goals and priorities may not be achieved. Theserisks and uncertainties include but are not limited to thoseidentified and reported in the Company’s public filings under theCompany’s SEDAR profile at www.sedar.com. The Company's ability tomeet its outstanding obligations could differ materially from thosecurrently anticipated due to factors such as: the performance offacilities and pipelines, commodity prices, price volatility, pricedifferentials and the actual prices received for the Company’sproducts, royalty regimes and exchange rates, the availability ofcapital, labour and services, the creditworthiness of industrypartners, G2’s ability to acquire additional assets, unexpected increases in operating costs,and risks associated with potential future lawsuits and regulatoryactions made against the Company including but not limited to beingfound in default of the Company's obligations to Cloudbreak. Althoughthe Company has attempted to identify important factors that couldcause actual actions, events or results to differ materially fromthose described in forward-looking information, there may be otherfactors that cause actions, events or results not to be asanticipated, estimated or intended. There can be no assurance thatsuch information will prove to be accurate as actual results andfuture events could differ materially.
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