G2 Energy Corp (CSE:GTOO, OTC:GTGEF) has reached a confidential settlement of a claim and counterclaim with TriVista Oil Co LLC, the company announced.
G2 Energy said it hopes to allocate certain capital received under the settlement deal to pay 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.
The company expects this work will quickly add 30 barrels of oil equivalent per day from the workovers and at today’s oil prices would generate approximately an additional $70,000 per month of revenue production.
For background, G2 Energy entered into a purchase and sale agreement (PSA) with TriVista in August 2021. The company later delivered to TriVista a notice of default and gave notice of its pre-emptive termination of the PSA, alleging certain title defects, certain defaults and certain misrepresentations by TriVista of its obligations under the PSA.
G2 Energy provided written instruction to the escrow agent pursuant to the escrow agreement between it, TriVista and the escrow agent, to immediately pay G2 the deposit amount of US$400,000.
That prompted TriVista to file an action in Texas alleging that G2 Energy was in breach of the PSA and seeking the deposit to be released from escrow to TriVista, and G2 subsequently filed a counterclaim.
Then, on March 1, a confidential settlement was reached.
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