G2 Energy Corp (CSE:GTOO, OTC:GTGEF) told investors it has concluded negotiations and struck a deal that gives it ultimate control over all revenues and liabilities generated from its cornerstone-producing asset, the Masten Unit in Cochran County, Texas.
The junior oil and gas producer said in a statement that the Rule 11 Agreement was executed between it, Masten’s former operator RMB Operating LLC, and the sellers of the unit.
The company confirmed receipt of the June and July 2023 oil and gas payments from RMB. It said it has instructed the purchasers of the oil and gas — Phillips 66 (NYSE:PSX) and Targa Resources Corp respectively — to remit all future payments to Oilwell Operators, its current operating team.
As a strong show of support, G2 said its lenders have agreed to provide a three-month payment holiday to allow it to focus on executing and funding its Production Enhancement Program (PEP) which is well underway. By agreement, its next monthly payment will be due on November 1, 2023.
“The result is not only beneficial for G2 and the royalty owners but for our shareholders as well,” G2 CEO Slawek Smulewicz commented.
“The agreement frees up the capital in order to complete the PEP and fully restore our oil and gas production on the Masten Unit.”
Vancouver-based G2 Energy is strategically focusing on expanding its footprint by identifying and capitalizing on overlooked, yet high-potential opportunities. Its flagship operation is the Masten Unit in the Permian Basin, Texas, G2’s first producing asset.
Contact the author at stephen.gunnion@proactiveinvestors.com