Mr. Slawek Smulewicz reports

G2 ENERGY AND GLOBAL OIL & GAS RECOVERY CORP SIGN LOI TO EXAMINE OIL & GAS PROPERTY ACQUISITIONS

G2 Energy Corp. has signed a letter of intent (LOI) with Global Oil & Gas Recovery Corp. in order to conduct due diligence and pursue an oil and gas acquisition of the Shiloh oil and gas leasehold in southeastern Kansas.

G2 and Global have entered into the LOI, which sets out an exclusivity period and certain terms and conditions pursuant to which the proposed transaction will be completed. The terms outlined in the LOI are subject to the parties successfully entering into a definitive agreement in respect of a transaction on or before Jan. 31, 2025, or such other date as the company and Global may mutually agree.

Global Oil and Gas Recovery

Global's primary focus is to implement enhanced oil recovery (EOR) techniques to existing abandoned wells, maturing oil fields and previously thought-to-be-exhausted reserves. Initially focusing on the states of Kansas and Texas, the EOR systems can then be deployed in any jurisdiction as long as the prescribed conditions for EOR are met. Restoring former producing to oil and gas wells will create rebuild and underlying reserve value and enhance value for shareholders by generating a positive revenue from the production profiles.

Shiloh oil and gas leasehold

The four counties where the leasehold is located realize production of 719,217 barrels of oil for the year - and 7,299,945,000 cubic feet of natural gas. This equates to generally 2,000 barrels of oil produced each day in 2022 and 20 million cubic feet of gas each day. These four counties are Allen, Woodson, Wilson and Neosho. All production data for 2021/2022 come from the Kansas Geological Survey (KGS) as the source of all the information and data.

An illustrative summary of the oil and gas fields of Kansas, along with some production data, is available by visiting the KGS website.

The company is in the process of obtaining a reserves data report from an independent qualified reserves evaluator in accordance with National Instrument 51-101 for the Shiloh oil and gas leasehold.

Geology

The leaseholds that make up the project lie in the Cherokee basin, just to the south of the Bourbon Arch, which borders Kansas and Oklahoma. Available data and mapping indicate basement structural features in the area of the state which are located on the top of the Arbuckle formation in southeastern Kansas, as well as the top of the Mississippian formation. Major structural features show that the Bartlesville sandstone formation, the Squirrel sandstone formation and the Mississippian formation are historically productive formations.

This area is generally known as the Coalbed methane formation, which can be seen from the perforations on the cross-section of the Bartlesville and Squirrel areas of the reservoirs. Also, the Mississippian is usually a limestone formation, which has the potential for oil and gas, and in certain areas, helium.

Opportunity

In August, 2023, a gas pressure test was conducted on the project with a geologist. The test indicated that 90 per cent of the 114 well bores tested were available for rework and ready to be swabbed and pumps inspected to be put back into production.

If the due diligence of the project is positive and the proposed LOI transaction is completed, Global will begin the process of doing a workover on 90 wells with the objective to reactivate the wells in stages, targeting an initial production volume of 500,000 cubic feet of gas per day, and then ramping up to 1,000 mcfg/d.

The leasehold also previously produced oil from two wells, although the previous operator did not target the oil. Global is planning to do workovers on these two wells in order to assess the potential to rework and convert some of the lower-producing gas wells to oil, with a view to confirming the prospectivity of the success of a drilling program. This drilling, if successful, will target the Squirrel and Bartlesville sands, with an estimated oil reserve of 926,500 barrels.

Additionally, Global has identified an initial portfolio of assets in the Permian basin in Texas. The portfolio includes producing oil fields with associated proven reserves that are cash flow positive at current oil prices. Additional information will be provided concerning the assets after the company has completed its due diligence.

Slawek Smulewicz, president and chief executive officer of G2 Energy, stated, "Given the current low oil price, and natural gas price rise, this transaction is an excellent opportunity for G2 Energy shareholders to acquire high-quality North American assets with potential for significant upside recoveries utilizing proven EOR techniques."

Any acquisitions will be subject to the following conditions:

• Further due diligence by the company;
• Settlement of various debts and debenture amounts by the company;
• Completion of a definitive agreement, which is yet to be established.

Terms of the agreement and financing commitment will be outlined in a definitive agreement which would be expected to close on or before Jan. 31, 2025. Additional details regarding the proposed transaction will be provided in further news releases if and when the parties enter into a definitive agreement.

The proposed transaction is an arm's-length transaction. The LOI is non-binding and also contemplates other material conditions precedent to the closing of any transaction, including compliance with all applicable regulatory requirements.

About G2 Energy Corp.

G2 is a junior oil and gas producer. 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 that will fast-track overall oil and gas production growth.

We seek Safe Harbor.