G2 Energy Corp (CSE:GTOO, OTC:GTGEF) has said it is looking to raise aggregate gross proceeds of up to C$700,000 via a non-brokered private placement financing of up to 14,000,000 units at a price of $0.05 each.
The company said proceeds from the financing are intended to be used in connection with optimizing production from currently producing and idle wells on the Masten leases, potential new acquisitions, as well as for general working capital.
It noted that production will be enhanced through a series of wellbore cleanouts and hot oil treatments designed to remove scale and paraffin. In conjunction with the wellbore cleanouts, workovers designed to return idle Masten Unit wells to production will be undertaken in the immediate future. These programs include tubing repairs, lift optimization, and the recompletion of several new productive oil and gas zones located higher up in the wellbore.
In a statement, Slawek Smulewicz, G2 Energy’s CEO commented: “This is just the beginning of our optimization program. It achieves the near-term goals set for our company while significantly increasing current production and improving ROI, while generating growth for our shareholders.”
Each unit in the financing consists of one common share in the capital of the company and one common share purchase warrant. Each warrant will be exercisable by the warrant holder to acquire one additional common share at a price of C$0.08 for a period of twenty-four months from the closing of the private placement, subject to an acceleration clause.
G2 Energy said it may elect to close the financing in one or more tranches, adding that it is anticipated that insiders of the company may participate in the private placement.
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