(TheNewswire)
Vancouver, British Columbia – TheNewswire - August 17, 2023 - G2 Energy Corp. (CSE:GTOO ) , ( FWB:UD9) ( the "Company" or "G2") announces today, that it has implemented a Production EnhancementProgram (the “ PEP ”) on its core asset in Texas, designedto increase the production of oil and gas.
Overview:
The Masten Unit (the “ Unit ”), the coreproducing assets for G2 Energy is located in the Permian Basin inTexas within the billion-barrel Levelland Field. At present, the Unithas 18 active producers, 6 water injectors, and 9 wells shut-in. G2 isnow the operator and owns 100% working interest in the wells andfacilities in the Unit. Over the next 3 months, G2 will be focused onimplementing its PEP.
Masten Unit Production EnhancementProgram (PEP):
The PEP is designed to increase the production of oiland gas from the leases and to reduce the operating costs to increasethe value proposition of the Unit. G2 has laid out a 5-point plan toenhance the value of the Unit:
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G2 assumes operatorship of the Masten Unit;
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Assemble a Texas-based operating team familiar with thePermian Basin;
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Conduct a well and facility diagnostic and integritystudy to identify wells that could /should be producing at higherlevels and optimization initiatives in the facilities to reducecosts;
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Identify and execute a well workover program to returnthe shut-in wells to production;
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Identify and execute a well workover program toperforate zones that have never been produced.
The G2 team has been progressing with each aspect ofthe PEP concurrently. On July 25, 2023, G2 took over the operatorshipof the Masten Unit in order to control both the pace of the workprogram and the capital costs and appointed Oilwell Operators Inc.(the “ OOI ”) to head up the field team. OOI is a highly respectedcontract operator and is presently operating over 600 wells in thePermian basin.
OOI deployed their team to the Unit and immediatelybecame aware that the wells were not being operated in a mannerdesigned to maximize production resulting in the opportunity toincrease production quickly at very little capital costs.
In one case, Well J-16; the previous operator had shutthe well in pending the replacement of the flowline at an estimatedcost of 22,200. The OOI team recommended that the flowline couldbe brought back into service at a cost of 1,800 and increase theUnit production by an estimated 16% from the current level. The workon J-16 begins this week and should be on stream within 10 days.
Results to Date:
After only 3 weeks, G2 and OOI have completed basicfield maintenance and have returned 8 wells to production, havegenerated Workover Plan for 3 wells, one being well A-13 which is theUnits best producer and is expected to produce 20+ Barrels of Oil PerDay (“ BOPD ”). At present, the Unit is producing an estimated 38 BOPDand 160,000 Cubic Feet of Gas per Day (“ CFD ”) for a totalof 65 Barrels of Oil Equivalent Per Day (“ BOEPD ”) [1] . Based on the records from last year, the estimated production fromthe 3 wells to be brought on-stream immediately is 34 BOPD or an 89%increase from the present oil production of the Unit.
Slawek Smulewicz, CEO, stated “ We are very pleased with the new teams’rapid progress at G2 and our analysis shows that we can continue toincrease production while decreasing operating costs in the near-term.The momentum is building, and we will keep the market updated on theresults of our Production Enhancement Program .”
[1] NI51-101/5.14(d): "BOEs may bemisleading, particularly if used in isolation. A BOE conversion ratioof 6 Mcf: 1bbl is based on an energy equivalency conversion methodprimarily applicable at the burner tip and does not represent a valueequivalency at the wellhead."
On Behalf of the Board
“Slawek Smulewicz”
Slawek Smulewicz CEO
For further information, please contact:
John Costigan
VP Corporate Development
O: +1 604 6208589
E: jcostigan@g2.energy
W: WWW.G2.ENERGY
About G2 EnergyCorp.
G2 is a junior oil and gas producer listed on the CSEexchange. It's primary focus is to acquire and develop additionaloverlooked, low risk, high return opportunities in the oil and gassector. G2's strategy is to obtain a portfolio of risk-managedproduction and development opportunities onshore, U.S.A. In May 2022,G2 acquired the Masten Unit in the Permian Basin, Texas. The MastenUnit is the Company's first producing asset. G2 is targeting top tierprojects with operating netbacks and infrastructure facilities whichwill fast track overall oil and gas production growth.
The Canadian Securities Exchange hasneither approved nor disapproved the information containedherein.
Forward Looking StatementsCaution
Statements in this press releaseregarding the Company which are not historical facts are“forward-looking statements” that involve risks and uncertainties.Such information can generally be identified by the use offorwarding-looking wording such as “may”, “expect”,“estimate”, “anticipate”, “intend”, “believe” and“continue” or the negative thereof or similar variations. Sinceforward-looking statements address future events and conditions, bytheir very nature, they involve inherent risks and uncertainties. TheCompany provides forward-looking statements for the purpose ofconveying information about current expectations and plans relating tothe future, including expectations regarding the Company's ability tomeet its outstanding obligations, and readers are cautioned that suchstatements may not be appropriate for other purposes. By its nature,this information is subject to inherent risks and uncertainties thatmay be general or specific and which give rise to the possibility thatexpectations, forecasts, predictions, projections or conclusions maynot prove to be accurate, that assumptions may not be correct and thatobjectives, strategic goals and priorities may not be achieved. Theserisks and uncertainties include but are not limited to thoseidentified and reported in the Company’s public filings under theCompany’s SEDAR profile at www.sedar.com. The Company's ability tomeet its outstanding obligations could differ materially from thosecurrently anticipated due to factors such as: the performance offacilities and pipelines, commodity prices, price volatility, pricedifferentials and the actual prices received for the Company’sproducts, royalty regimes and exchange rates, the availability ofcapital, labour and services, the creditworthiness of industrypartners, G2’s ability to acquire additional assets, unexpected increases in operating costs,and risks associated with potential future lawsuits and regulatoryactions made against the Company including but not limited to beingfound in default of the Company's obligations to Cloudbreak. Althoughthe Company has attempted to identify important factors that couldcause actual actions, events or results to differ materially fromthose described in forward-looking information, there may be otherfactors that cause actions, events or results not to be asanticipated, estimated or intended. There can be no assurance thatsuch information will prove to be accurate as actual results andfuture events could differ materially.
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