/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE
TRADING SYMBOL - GRT
CALGARY, June 18 /CNW/ - G2 Resources Inc. ("G2") (TSXV - "GRT") is
pleased to provide an operational update on its core properties.
Since the beginning of the year, the Company participated in the drilling
of nine (3.14 net) wells and two recompletions (0.36 net), resulting in seven
gas wells and four oil wells.
At Trutch in northeastern British Columbia, G2 participated in the
drilling of three wells and recompleted an additional two, resulting in five
gas wells. G2's working interest in these operations is approximately 23%.
Four of these wells were tied in and placed on production prior to spring
breakup. The 2006/2007 winter drilling program has confirmed the extension of
the field on the north side of Trutch Creek. As at the end of May 2007 there
were 11 wells producing at a net 1,500 Mcf per day or 250 boe per day to G2.
At Luseland in southwestern Saskatchewan, G2 and its partner have just
finished the drilling and casing of four potential oil wells in the Bakken
formation. G2 has an average working interest of 49% in the project.
Completion operations are expected to commence by the end of June, 2007 and
the wells will be placed on production over the next two months. The Company
currently has two previously drilled wells on production at a combined rate
net to the Company of 56 barrels per day.
At Wapiti, the Company has two wells on production and has constructed
pipeline for a third well to be tied in. Two wells which were drilled in 2006
are expected to be completed and evaluated in the second and third quarters of
2007. The Company's current share of production from its 55% average working
interest in the wells is 250 Mcf per day or 42 boe per day.
At Windfall, Alberta the Company has surveyed and is currently licensing
two Nisku drilling locations. G2 has working interests of 25% and 33% in these
wells and expects to commence drilling the first Nisku test in July 2007.
Drilling time for each of the wells is anticipated to take 30 days.
A well was drilled and completed at Foam Lake, Saskatchewan to validate
the exploration permit during the second quarter. It is currently standing as
a potential Second White Specks gas well. Drilling was resumed on the Kakwa
well and the well was drilled to a total depth 4,300 meters. Evaluation of
this well will be completed in the 2007 winter drilling season.
G2 Resources' production from the properties described above and other
minor properties is currently 540 boe per day.
Per barrel of oil equivalent ("boe") amounts may be misleading,
particularly if used in isolation. A boe conversion ratio has been calculated
using a conversion rate of six thousand cubic feet of natural gas to one
barrel of oil (6 Mcf:1 bbl) and is based on an energy equivalency conversion
method applicable at the burner tip and does not represent a value equivalency
at the wellhead.
FORWARD LOOKING STATEMENTS
This press release may contain forward-looking statements including
expectations of future production, cash flow and earnings. These statements
are based on current expectations that involve a number of risks and
uncertainties, which could cause actual results to differ from those
anticipated. These risks include, but are not limited to: the risks associated
with the oil and gas industry (e.g. operational risks in development,
exploration and production, delays or changes to plans with respect to
exploration or development projects or capital expenditures or availability of
drilling equipment; the uncertainty of reserve estimates; the uncertainty of
estimates and projects relating to production, costs and expenses, and
environmental risks), commodity price, price and exchange rate fluctuation.
Additional information on these and other factors that could affect G2's
operations or financial results are included in management's discussion and
analysis of G2's quarterly financial results filed with Canadian securities
regulatory authorities that may be accessed at www.sedar.com.
The TSX Venture Exchange Inc. does not accept responsibility for the
adequacy or accuracy of this release.
For further information:
For further information: Curtis A. Hartzler, President and CEO, G2
Resources Inc., Phone (403) 263-4310, Fax No. (403) 263-4368