Today.
G2 Energy acquires control over Masten unit revenue
2023-09-07 11:27 ET - News Release
Mr. Slawek Smulewicz reports
G2 ENERGY CORP GAINS DIRECT CONTROL OVER ALL REVENUES
G2 Energy Corp. has concluded negotiations and has executed the Rule 11 agreement between G2, the former operator RMB Operating LLC and the Masten unit sellers (the lenders). The agreement gives G2 ultimate control over all revenue and liabilities generated from the Masten unit. The agreement also addresses among others the potential damages incurred by the previous operating arrangement.
As of Sept. 6, G2 can confirm it has received the June and July, 2023, oil and gas payments from RMB. G2 has instructed the oil purchaser, Phillips 66, and gas purchaser, Targa Resources Corp., to remit all future payments to G2's current operating team, Oilwell Operators Inc. (OOI).
G2 would like to acknowledge the co-operation of the lenders in reaching this settlement. As a strong show of support, the lenders have agreed to provide a three-month payment holiday to G2 so that the company can focus on executing and financing its production enhancement program (PEP) which is well under way. Parties agreed the next monthly payment will be due on Nov. 1, 2023.
As per the agreement G2 and OOI have established a target of completing the remaining workovers on A-13 and G-2 wells by Sept. 30, 2023.
Slawek Smulewicz, chief executive officer, states: "I would sincerely like to thank our legal team for their hard work and the lenders for their co-operation and foresight in bringing this negotiation to a mutually satisfactory conclusion. The result is not only beneficial for G2 and the royalty owners but for our shareholders as well. The agreement frees up the capital in order to complete the PEP and fully restore our oil and gas production on the Masten unit."
About G2 Energy Corp.
G2 is a junior oil and gas producer listed on the Canadian Securities 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.