G2 announces completion of financing and operational and reserves update

    IN THE U.S./

    CALGARY, March 14 /CNW/ -

    Closing of Financing

    G2 Resources Inc. ("G2") (TSXV - "GRT") is pleased to announce that it
has closed the previously announced financing for aggregate gross proceeds of
$7,394,185. Under the brokered private placement of units, G2 issued 1,628,250
flow-through units consisting of one flow-through share and one half of a
Class A share purchase warrant at a price of $0.58 per unit and 1,500,000
equity units consisting of one Class A share and one Class A share purchase
warrant at a price of $0.55 per unit. The brokered private placement raised
gross proceeds of $1,769,385. Quest Securities Corporation acted as agent. G2
also closed the sale of 10,226,909 equity units at a price of $0.55 per unit
on a non-brokered basis (for gross proceeds of $5,624,800).
    The warrants issued as part of the flow-through units and the equity
units entitle the holder of each full warrant to subscribe for one Class A
share at a price of $0.80 for two years unless the expiry date is accelerated
or extended, subject to regulatory approval, in certain circumstances.
    The securities issued under the financing are subject to a four month
hold period ending July 13, 2007.

    Operational Update

    At Trutch, NE British Columbia, G2 reports that gross production for the
month of February averaged 6 mmcf/d (1.3 mmcf/d net to G2). There are
currently eight producing wells on this property with an additional four wells
completed and expected to be tied in before spring breakup. There are numerous
productive horizons in these wells which are producing from the Debolt,
Bluesky and Halfway-Artex zones. Additional zones, including the Charlie Lake
formation are now being completed and production from the multiple zones will
be co-mingled for an anticipated average rate of 7-8 mmscf/d.
    The winter drilling program has been completed, and the results confirmed
the extension of the field on the north side of the river. This will
significantly expand the future drilling opportunities and ultimate gas volume
which is associated with this project. Construction of the pipeline system
across the river is nearly complete, and field pipeline systems have been
installed to provide for tie-in prior to spring breakup of the four wells
north of the river. Gross production volumes for these four wells is estimated
at 4 mmcf/d but current compression and field facilities will limit the total
Trutch production to 10 mmscf/d. The operator of the property is currently
reviewing expansion options, and expects to increase the total field
production to approximately 12 mmscf/d in the second quarter of 2007. G2 holds
an average of 22% interest in the 20,840 acres which comprise the Trutch
    At Foam Lake, Saskatchewan, where G2 is operator and holds a 37.5%
working interest, the first well is expected to spud by March 15, 2007. This
well will be drilled to approximately 950 meters and cased to evaluate the
potential for hydrocarbons on this 207,000 acre parcel of exploration lands.

    Reserves Update

    Summarized in the table below are the consolidated reserve volumes and
values for G2 and Cannon as at January 31, 2007. These reserves represent a
significant increase over the previously disclosed reserves volumes and values
of G2 at as December 31, 2005.

    Summary of the Evaluation of the Company's P&NG Reserves -
    Escalating Price Forecast
                                 G2 Interest
                              Interest    Net         Net Present Values
                               (before  (after       Before Income Taxes
                               royalty  royalty         Discounted At
                               deduct-  deduct-  ----------------------------
                                ions)    ions)       0%        5%       10%
                                                   ($000)    ($000)    ($000)

    Natural Gas (mmcf)
      Total proved             5,098     3,868    18,997    15,482    12,998
      Total probable           1,911     1,457     9,014     6,413     4,868
      Total proved plus
       probable                7,009     5,325    28,011    21,895    17,865

    Oil & Natural Gas
     Liquids (mbbls)(1)
      Total proved               660       481     4,088     3,637     3,257
      Total probable             320       236     2,873     2,293     1,870
      Total proved plus
       probable                  980       717     6,961     5,930     5,127

    Total (mboe)
      Proved                   1,509     1,126    23,085    19,119    16,255
      Probable                   638       479    11,887     8,706     6,738
      Total proved plus
       probable                2,147     1,605    34,972    27,825    22,993
    (1) Natural gas liquids values have been included in the natural gas

    These reserve estimates were contained in a reserve report with an
effective date of January 31, 2007, prepared for G2 by Sproule Associates
Limited ("Sproule"), independent petroleum engineers of Calgary, Alberta. The
Sproule report provides an estimate of the company's proved and probable
reserves together with forecasts of future net revenue, using assumptions and
methodology guidelines in accordance with National Instrument 51-101.
Estimated future net revenue, disclosed above as "Net Present Values," does
not necessarily represent the fair market value of the company's reserves. The
price assumptions underlying the estimates were prepared by Sproule and there
is no assurance that escalating price and costs assumptions will be attained
and the variance could be material. Also, it should be noted that this reserve
report does not reflect the full results of the winter drilling program
because additional wells were drilled and completed after the effective date
of the reserve report.
    G2 intends to make its annual filings pursuant to National Instrument 
51-101 on or before April 30, 2007. When filed, copies of these documents may
be obtained electronically from the SEDAR system at www.sedar.com.

    Statements in this press release may contain forward-looking statements
including management's assessment of G2's future plans and operations.
Information concerning reserves may also be deemed to be forward-looking
statements as such estimates involve the implied assessment that the resources
described can be profitably produced in future. 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 background risks of the oil and gas
industry (e.g., operational risks in development, exploration and production;
potential delays or changes in plans with respect to exploration or
development projects or capital expenditures; the uncertainty of reserve
estimates; the uncertainty of estimates and projections relating to
production, costs and expenses, and health, safety and environmental risks),
and uncertainties resulting from potential delays or changes in plans with
respect to exploration, development projects, capital expenditures or
    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.


For further information:

For further information: Curtis A. Hartzler, President and CEO, G2
Resources Inc., Phone (403) 263-4310, Fax No. (403) 263-4368

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