Masten Unit

The Masten Unit is the Company's first producing asset which was officially acquired in May 2022. The Masten Unit is a 2,600 acre project located within the prolific billion barrel Levelland Field in Cochran County, Texas. Four wells currently operate on the project. 

Oil and Gas Production Plans:

The operating wells have workover programs which are still in the process of being fully implemented. The Company plans to complete the programs in the first few months of operation proceeding the Masten Unit acquisition, increasing production from 80 BOEPD to approx. 120 BOEPD. The Offset operator has successfully drilled six horizontal wells, with initial production averaging 250 BOEPD, with ultimate recoveries projected to be in excess of 350 MMBOE. Waterflood Development – Waterflood was never fully developed. CAPEX cost approximately $10 MM but will add a stable 350-500 BOEPD in production. Bolt-On acquisitions – multiple smaller companies with adjacent and/or nearby leases for potential sale.

Projections:

Our four horizontal well program projects production to peak at 450 BOPD in 2024 with annual operational cash flow exceeding $6MM in 2023 and $7MM in 2024. Waterflood development can add an additional 350 BOPD for a steady-state 10 years. Cumulative free cash flow after capital is projected to be $14MM within five years (2026). Based on oil hedging initiatives – cash balance at $70 flat WTI will not fall below $1MM, allowing optionality for additional capital development and bolt-on acquisitions. Cash flow projections show initial $3.6MM loan can be paid in full within 3 years.

 

 

Long-Term goals

Untapped Potential

The Masten Unit currently has 18 producing wells that can be further optimized, and four idle wells that can be returned to production. Once capital has been raised, we expect to triple our current production over the next six months through strategic enhancements of our current assets.   

 

Horizontal Drilling

The Masten Unit supports at least four horizontal wells. Once drilled, we expect production to increase by 350 BOEPD per well, with an expected long-term projection of 1000 BOEPD.

Tie-In Possibilities

G2 Energy is currently in the process of securing leases on some properties near the Masten Unit. These assets currently don't have the infrastructure necessary to reach their full potential, however, we will be able to tie those assets into the Masten Unit's infrastructure to maximize the site's production capabilities. 

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G2's Corporate Mission

G2 Energy Corp is focused on joining the ranks of the mid-tier junior oil and gas producers. The Permian Basin hosts numerous producing oil and gas companies. The strategy is to continue to seek out similar assets in the region, along the same trend, which host deep and vast oil reserves.

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