News!!
G2 Energy adopts Masten production enhancement program
2023-08-17 11:42 ET - News Release
Mr. Slawek Smulewicz reports
G2 ENERGY CORP. IMPLEMENTS ITS PRODUCTION ENHANCEMENT PROGRAM (PEP) ON ITS CORE ASSET IN TEXAS
G2 Energy Corp. has implemented a production enhancement program (the PEP) on its core asset in Texas, designed to increase the production of oil and gas.
Overview
The Masten unit, the core producing assets for G2 Energy, is located in the Permian basin in Texas within the billion-barrel Levelland Field. At present, the Unit has 18 active producers, six water injectors and nine wells shut in. G2 is now the operator and owns 100-per-cent working interest in the wells and facilities in the unit. Over the next three months, G2 will be focused on implementing its PEP.
Masten unit production enhancement program (PEP)
The PEP is designed to increase the production of oil and gas from the leases and to reduce the operating costs to increase the value proposition of the unit. G2 has laid out a five-point plan to enhance the value of the unit:
- G2 assumes operatorship of the Masten unit;
- Assemble a Texas-based operating team familiar with the Permian basin;
- Conduct a well and facility diagnostic and integrity study to identify wells that could/should be producing at higher levels and optimization initiatives in the facilities to reduce costs;
- Identify and execute a well workover program to return the shut-in wells to production;
- Identify and execute a well workover program to perforate zones that have never been produced.
The G2 team has been progressing with each aspect of the PEP concurrently. On July 25, 2023, G2 took over the operatorship of the Masten unit in order to control both the pace of the work program and the capital costs and appointed Oilwell Operators Inc. (OOI) to head up the field team. OOI is a highly respected contract operator and is presently operating over 600 wells in the Permian basin.
OOI deployed its team to the unit and immediately became aware that the wells were not being operated in a manner designed to maximize production resulting in the opportunity to increase production quickly at very little capital costs.
In one case, well J-16, the previous operator had shut the well in pending the replacement of the flowline at an estimated cost of $22,200 (U.S.). The OOI team recommended that the flowline could be brought back into service at a cost of $1,800 (U.S.) and increase the unit production by an estimated 16 per cent from the current level. The work on J-16 begins this week and should be on stream within 10 days.
Results to date
After only three weeks, G2 and OOI have completed basic field maintenance and have returned eight wells to production, and have generated workover plans for three wells, one being well A-13, which is the unit's best producer and is expected to produce over 20 barrels of oil per day (BOPD). At present, the unit is producing an estimated 38 BOPD and 160,000 cubic feet of gas per day (CFD) for a total of 65 barrels of oil equivalent per day (BOEPD). Based on the records from last year, the estimated production from the three wells to be brought on stream immediately is 34 BOPD or an 89-per-cent increase from the present oil production of the unit.
Slawek Smulewicz, chief executive officer, stated: "We are very pleased with the new teams' rapid progress at G2 and our analysis shows that we can continue to increase production while decreasing operating costs in the near term. The momentum is building, and we will keep the market updated on the results of our production enhancement program."
About G2 Energy Corp.
G2 is a junior oil and gas producer listed on the Canadian Securities Exchange. Its primary focus is to acquire and develop additional overlooked, low-risk, high-return opportunities in the oil and gas sector. G2's strategy is to obtain a portfolio of risk-managed production and development opportunities onshore, United States. In May, 2022, G2 acquired the Masten unit in the Permian basin, Texas. The Masten unit is the company's first producing asset. G2 is targeting top-tier projects with operating netbacks and infrastructure facilities which will fast-track overall oil and gas production growth.