News.
G2 Energy's Masten produces 3,051.69 boe in October
2023-11-09 09:27 ET - News Release
Mr. Slawek Smulewicz reports
G2 ENERGY'S MASTEN UNIT HITS RECORD OIL AND GAS PRODUCTION
Oil and Gas production has exceeded the original volumes at G2 Energy Corp.'s wholly owned Masten unit acquired on June 1, 2023, located in the Permian basin in Levelland, Tex.
The Production Enhancement Plan ("PEP') as executed by G2's on the ground team, Oilwell Operators, has brought back over 60/BBLS a day into production since they put "boots on the ground". This was done with a minimal budget and a focus on simple maintenance procedures neglected by the previous operator. The PEP includes: Calibrating pump outputs, repairing broken lines, gas flowline cleanouts, repairs to electrical systems, and regularly scheduled maintenance.
The record production (OIL & GAS) for the Masten Unit in the month of October was as follows:
OIL - 2181.07 BBLS, GAS - 5323.7 MCF or 3051.69 BOE[1].
The Masten Unit has now stabilized at a new Production baseline of 70.35 BOPD. This represents a 61% increase over the average of the previous operator.
This new baseline will allow G2 to establish a predictable reserve number required to generate a PDP value. (" proved developed producing oil and gas reserves ") This will allow G2 to re-finance with the local Texas bank thereby lowering borrowing costs and increasing the Company's monthly cash flow. Which will allow G2 to continue bringing wells into optimum production.
The Masten Unit has room for 4 to 6 horizontal wells. The property contingent to the Masten Unit is operating horizontals that historically produced between 300 - 350 Barrels of Oil Equivalent Per Day ("BOEPD") [1] .
Slawek Smulewicz commented: " We are extremely pleased with these results, and we expect this momentum to continue as we complete scheduled workovers and continue implementing proper maintenance procedures. We are just getting started."
[1] NI51-101/5.14(d): "BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf: 1bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead."