Welcome to the Market Herald, I’m Simon Druker and you’re watching the Top Line.
G2 Energy is involved in acquiring existing oil and gas assets, primarily in oil-rich Texas. The Vancouver-based energy company remains focused on joining the top ranks of other mid-tier junior oil and gas producers.
I’m joined today by G2 Energy Chief Executive Officer Slawek Smulewicz, welcome back to the Top Line.
TMH: We have a lot of news to get to. But to start off, you’ve had some movement on the executive level, welcoming a new CFO and adding the Chief Operating Officer title to an existing role. Elaborate on that for us. Why is that such positive news?
SS: That’s really very positive news for the company and I am extremely happy to announce that we have now the permanent CFO of the company and even more important, Gabriel as well is a director already on our board. He is familiar with the company and he has most importantly experience with oil and gas. We have now finally the right CFO for the company, the person we we’re looking for, for some time but now we are happy to see Gabriel as a part of our team. Even more importantly, David who is already the president of the company and he’s the part of our board, now he as well will help us as the COO of the company who is active, the COO with his experience with oil, gas, with many years of working on the field. That’s a great achievement for the company and he is very familiar with our assets. That’s another big accomplishment and I think we will see the results very soon.
TMH: Earlier this month, you also recently resolved an issue with a lender related to your property in Texas. How does that affect or help your operations there?
SS: That’s absolutely for us an important step because we now can finally focus on the assets that’s supposed to be the core of our business from the very beginning. It was disturbed because of this misunderstanding or growing concern with our lender. That has been solved, that’s behind us and now we can focus on the assets as you mentioned, yes, we have the core assets, our flagship master unit which is worth of 12 million dollars based on the latest independent reserve report. That’s where we want to focus on, that’s where all of our attention is supposed to be focused on. That’s why putting behind the discussion with the venture holder, it’s an important factor for the company.
TMH: And you also settled a separate claim against Trivista Oil in March, how does that clear things up for you?
SS: That’s exactly another important step to be more focused on the assets. Exactly because on top of that, by solving this problem with TriVista, we received additional capital, which was done at the core. Now we have more possibility to spend the money on the assets, increase production and to increase the revenue, which again that’s our focus. Solving the problem with TriVista was an important step ahead and more importantly that step allowed us to release some funds, which now is available for us and we can focus on spending on the assets on our core master unit.
TMH: On a more macro level, how are things shaping up at your producing project right now and what can we expect over the remaining nine months of the year?
SS: The master unit is a delightful little asset. I’ve spent 40 years in the industry around the world and it always amazes me what value you can extract on Permian Basin in Texas. The unit, when we looked at it, we looked at it, it was okay, what it was producing but what we really excited us was what it could produce and what we could do. When we look at these small assets, you immediately look at what can you optimize for six months now, it took us a little bit longer but we’re now ready to start the optimization plan and it’s really quite sophisticated for a small market cap company. We did it in sort of world class standards actually.
We’ve got six wells. We’ve identified two of them that will return to production and four of them we will work over and the results of those six wells will have a material impact on our production level. I’ve been in the industry long enough not to predict what wells will come in and whatever but we’re looking at a significant increase in our production and as a result our cash flow and then it allows us to move the strategy into the next acquisition and so it’s a nice tight little area. When I looked at the Permian Basin and I thought, my goodness gracious, if you’re in the conventional business, there’s still a huge number of opportunities and we plan on taking advantage of that. Yes, it’s going to be a pretty exciting next three months and next six months for us.
TMH: Looking beyond that timeframe, what else do you want your investors or our viewers to know right now?
SS: I think one thing that’s important is that you can produce oil where it’s already been produced and that’s probably the most significant thing. What we found is that in the area close to Maston, Maston will be our flagship but there are a number of assets that are close by that can be acquired and optimized and to build a nice little core sort of region for us. So that’s the next thing. Once we get our optimization and our cash flow, we go back hunting again and we’ve already had a fair bit of time to look at it. So yes, that’s what we’re gonna be looking for is to increase our production through acquisition and optimization and you harvest the cash and you move on to the next one. There’s more than enough opportunities in the Permian these days.
Thanks again for joining us today here at the Top Line today.
We’ve been speaking with Slawek Smulewicz, the CEO of G2 Energy. The company trades on the CSE under the ticker symbol “GTOO.” You can also visit G2.Energy for more information.
This is sponsored content issued on behalf of G2 Energy, please see full disclaimer here.