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 BOPD 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 BOPD in production. Bolt-On acquisitions – multiple smaller companies with adjacent and/or nearby leases for potential sale
Four well Horizontal well program projects production to peak at 450 BOPD in 2024 with annual operational cash flow exceeding $6 MM in 2023 and $7 MM 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 $14 MM within five years (2026). Based on oil hedging initiatives – cash balance at $70 flat WTI will not fall below $1 MM, allowing optionality for additional capital development and bolt-on acquisitions. Cash flow projections show initial $3.6 MM loan can be paid in full within 3 years
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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