REG - Cloudbreak Discovery - Investment G2 Energy Sees Record Production

Cloudbreak DiscoveryAnnouncement

09/04/2024 07:00

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RNS Number : 7622J  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."

- Ends -

 

For additional information please contact:

 

 Cloudbreak Discovery PLC  Tel: +44 792 6 397675
                           Andrew Male, Interim CEO         am@cloudbreakdiscovery.com

 Novum Securities          Tel: +44 7399 9400
 (Financial Adviser)       David Coffman / George Duxberry

 Oberon Capital            Tel: +44 20 3179 5355 /

                           +44 20 3179 5315
 (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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