Investment G2 Energy Sees Record Production

Cloudbreak Discovery PLC

09 April 2024

 

09 April 2024

Cloudbreak Discovery Plc

('Cloudbreak', or 'the Company')

Cloudbreak Investment G2 Energy Sees Record Production

Cloudbreak Discovery Plc, (LSE: CDL), the natural resource project generator, is pleased to report that G2 Energy Corp. ("G2"), has seen record oil production in March 2024.

Cloudbreak holds a US$2.0m Convertible Debenture in G2 and 4,225,400 common shares and Andrew Male and Paul Gurney have been appointed to the Board of G2.

G2 Reported on 4 April 2024;

G2 purchased the Permian Basin Masten Unit, located in Levelland Texas, through its wholly-owned subsidiary G2 Energy TX1 Inc., on 1 June 2022. Field operations were transferred to Oilwell Operators Inc., ("OOI") in July 2023 and the production has seen steady growth culminating in record production for the month of March 2024.   

G2 and OOI implemented a Production Enhancement Plan, ("PEP"), and the stable and incremental production growth is a direct result of this activity. 

Masten Unit Production - March 2024

OIL	2,334 Barrels	3,022 BOE[1]
GAS	4,129 MCF
Projected Gross Revenue	US $180,822
Projected Net Revenue	US $137,130

Final amounts will be confirmed during the 3^rd week of April 2024

The planned well workover program, which was financed by Claremond Wealth Ltd. and Cloudbreak Discovery plc, is also underway and should be completed by mid-April 2024. It is anticipated that this workover program should realise an estimated 15% increase in overall production for the field.

Slawek Smulewicz, CEO and Director, commented: "The production stabilisation is a direct result of our team focusing on and executing the Production Enhancement Plan. We particularly like the low-risk, low-cost element of steady growth that we are seeing in the field. In concert with the steady growth we are seeing we are also pleased with the restructuring of our Board and Management and continue to work on streamlining the corporate operations to make G2 more efficient overall. With the active involvement of Claremond and Cloudbreak we will also continue to evaluate additional acquisition opportunities as they arise."

Andrew Male, Director, Interim CEO, states: "This is a very positive step for Cloudbreak and its investment in G2. We have worked hard with G2 to get the Amending Agreement, financing and production into a positive place. As the workover program completes, we are looking forward to an increase in production that will make G2 even more financially sustainable."

[1] NI51-101/5.14(d): "BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf: 1bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead."

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For additional information please contact:

Cloudbreak Discovery PLC	Tel: [phone]
	Andrew Male, Interim CEO	[e-mail]
Novum Securities	Tel: [phone]
(Financial Adviser)	David Coffman / George Duxberry
Oberon Capital	Tel: [phone] / [phone]
(Broker)	Nick Lovering / Adam Pollock

About Cloudbreak Discovery PLC

Cloudbreak Discovery PLC is a leading natural resource project generator and royalty business. Cloudbreak is focused on energy royalty acquisitions with the aim of bringing near-term cashflow and driving shareholder value. Its primary operating jurisdiction is the United States, but the Company also deploys its project generation model in the international energy sector to acquire minority interests in projects of merit.

Through its wholly owned but independently operated subsidiary, Cloudbreak Exploration Inc., the Company will develop its array of mineral assets, whilst continuing to generate new projects with a particular focus on commodities key to the energy transition.

Cloudbreak's generative model across the energy and mineral sector enables a multi-asset approach to investing and exploration. Diversification within the natural resource sector and amongst resource classes is key to withstanding the cycles of investing.

 

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