News.
ORIGINAL: G2's Production Update and Latest Reserves
2022-12-15 13:40 ET - News Release
(via TheNewswire)
Vancouver, B.C. - TheNewswire - December 15 th , 2022 - G2 Energy Corp. (CSE:GTOO ) , ( FKN:UD9) (the “ Company ” or “ G2 ”) is pleased to announce that October production reached the highest reported volumes in six months. Oil sales for October were 2,038 barrels of oil and 3,357 mcf of gas for a total of 2,597 boe or 84 boe per day (63 boepd net). Net Revenue for the month was $125,037 and operational cash flow was $95,088 . Operating costs were $13.51 per boe which remains well within first quartile of industry performance. Commenting on the performance, Slawek Smulewicz, CEO commented “although oil prices have fallen from lofty $100 per barrel levels seen in early summer to a more stable $80 range, our operational cash flow remains solid. On an annualized basis, our operational cash flow exceeds $1 MM which is extraordinary for a small-cap stock.”
In addition to these stellar monthly production and cash flow results, G2 Energy is pleased to announce the results of its recently completed third-party audited reserves, which will also be released in its upcoming financial statements. As of July 1st, 2022 proved developed producing reserves are 310, 659 barrels of oil and 459,230 mcf of gas with a value of $5,559,020. Total reserves are 614,000 barrels of oil and 832,910 mcf of gas with a value of $12,047,370. (Discounted at 10%). On an undiscounted basis, the total value of G2’s reserves are $27,691,580. [1]
Dave Whitby, President commented “Our latest reserve report confirms the value of our assets. We look forward to monetizing these reserves in order to create value for our shareholders. As we do so, I am confident that our company will close the value between our market capitalization and the value of our oil and gas reserves.”
In other related news, G2 and Bridwell Oil have agreed to slide the expected closing date of the Bridwell Masten assets to January 1 st , 2023, during which time G2 continues its work to geologically map the asset and identify additional upside.
[1] MKM ENGINEERING (an independent third-party, qualified reserves evaluator) prepared a Reserve Report on Masten, dated effective July 1, 2022 (the "Report") in accordance to National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities . The Report will be available for review under the Company's profile on SEDAR www.sedar.com. The technical information and data in this news release have been extracted from the Report. This appraisal in the Report evaluates G2’s Proved Developed Producing (PDP) and Probable Undeveloped (PrUD) reserves. There is at least 90% probability that the quantities actually recovered will equal or exceed the estimated proved reserves and at least 50% probability that the quantities actually recovered will equal or exceed the sum of the estimated proved plus probable reserves.
Future net income (FNI) is after deducting estimated operating and future development costs, severance and ad valorem taxes, but before Federal income taxes. Total net Proved and Probable Reserves are defined as those natural gas and hydrocarbon liquid Reserves to G2’s interests after deducting all shrinkage, royalties, overriding royalties, and reversionary interests owned by outside parties that become effective upon payout of specified monetary balances. All Reserves estimates have been prepared using standard engineering practices generally accepted by the petroleum industry and conform to those classifications defined in the Canadian Oil and Gas Evaluation Handbook (“COGEH”). All hydrocarbon liquid Reserves are expressed in United States barrels (“Bbl”) of 42 gallons. Natural gas Reserves are expressed in thousand standard cubic feet (“Mcf”) at the contractual pressure and temperature bases. All monies are expressed in United States dollars.