Today..
G2 Energy receives capital from Trivista settlement
2023-03-10 09:31 ET - News Release
Mr. Slawek Smulewicz reports
G2 ACHIEVED A CAPITAL SETTLEMENT AGAINST TRIVISTA
G2 Energy Corp., in connection with the news releases dated Aug. 23, 2021, Nov. 2, 2021, and Dec. 8, 2021, has settled the claim and counterclaim with Trivista Oil Co. LLC.
On Aug. 23, 2021, the company entered into a purchase and sale agreement (PSA) with Trivista. The company delivered to Trivista a notice of default and gave Trivista notice of its pre-emptive termination of the PSA. Pursuant to the default notice, the company alleged certain title defects, certain defaults and certain misrepresentations by Trivista of its obligations under the PSA. As a result of the alleged title defects, defaults and misrepresentations specified in the default notice, the company terminated the PSA and provided written instruction to the escrow agent pursuant to the escrow agreement entered into among the company, Trivista and the escrow agent on Sept. 7, 2021, to immediately pay to the company the deposit amount of $400,000 (U.S.).
In response to the default notice, Trivista filed an action against the company in the state of Texas stating that the company was in breach the PSA and sought the deposit to be released from escrow to Trivista. The company filed a counterclaim to the action seeking release of the deposit from escrow to the company. In addition, the company sought the recovery of reasonable and necessary attorney's fees associated with the action, as well as all other damages available under applicable law resulting from Trivista's alleged breach of the agreement.
On March 1, 2023, the company and Trivista settled the action by way of the confidential settlement agreement.
The company hopes to allocate certain capital received under the settlement agreement to Cloudbreak's Discovery PLC debenture quarterly interest payments and to commence immediate work on two Masten unit priority wells that are down due to pump wear and tear. G2 expects this work will quickly add 30 boepd (barrels of oil equivalent per day) from the work overs and, at today's oil prices, would generate approximately an additional $70,000 per month of revenue production.
About G2 Energy Corp.
G2 Energy is a junior oil and gas producer listed on the CSE (Canadian Security Exchange) exchange. Its primary focus is to acquire and develop additional overlooked, low-risk, high-return opportunities in the oil and gas sector. G2's strategy is to obtain a portfolio of risk-managed production and development opportunities onshore United States. In May, 2022, G2 acquired the Masten unit in the Permian basin, Texas. The Masten unit is the company's first producing asset. G2 is targeting top tier projects with operating netbacks and infrastructure facilities which will fast track overall oil and gas production growth.