Olenox Corp begins review of drilling sites on current oil leases

CONROE, Texas - Olenox Corp, the energy development subsidiary of Safe & Green Holdings Corp. (NASDAQ:SGBX), announced Monday it has begun reviewing several drilling sites on current leases within its oil and gas portfolio.

The company stated it plans to complete one drilling project during the fourth quarter of 2025, followed by what it described as an "ambitious drilling agenda" for 2026 and beyond. This comes as the company faces significant financial challenges, with a current ratio of 0.16 and negative EBITDA of $9.36 million in the last twelve months.

Michael McLaren, CEO of Olenox Corp, said the company aims to reach 1,000 barrels of oil equivalent (BOE) per day by the end of 2026 through a combination of "legacy wellsite revitalization, drilling and acquisitions." InvestingPro analysis reveals concerning financial metrics, with revenue declining nearly 50% and significant cash burn. Subscribers can access 15 additional key financial insights about SGBX.

Olenox operates as a vertically integrated energy company with operations in Texas, Kansas, and Oklahoma. The firm focuses on acquiring and optimizing underdeveloped oil and gas assets while supporting field operations with specialized well services.

The company is continuing to expand its U.S. energy footprint through strategic acquisitions and field revitalization, according to the press release statement.

Olenox Corp operates across three divisions: Oil and Gas, Energy Services, and Energy Technologies. Its parent company, Safe & Green Holdings, primarily focuses on modular construction solutions.

The announcement comes as the company reports it is still bringing online legacy production from its existing leases while planning for new production through its drilling program.

In other recent news, Safe & Green Holdings Corp. has completed Phase 1 of its AI-powered wellsite monitoring system through its subsidiary Olenox Corp. This system, which utilizes the Machfu gateway technology, provides real-time, bi-directional monitoring and control of oil well operations. In addition, Safe & Green Holdings has regained compliance with Nasdaq listing requirements, meeting the Minimum Bid Price Rule. The company has also announced that its board of directors and senior executives have opted to receive stock compensation instead of cash, aligning their interests with those of shareholders. Furthermore, the company plans to relocate its SG Echo factory operations from Durant, Oklahoma, to Conroe, Texas, consolidating them with Olenox Corp.’s operations. These developments come as part of Safe & Green’s strategic initiatives to optimize operations and enhance shareholder value.

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