G2 Energy Corp Increases Daily Oil Production by 49%
Vancouver, British Columbia – September 27, 2023 G2 Energy Corp. (CSE:GTOO, FWB:UD9) (the "Company" or "G2") announced today, that it continues to execute its Production Enhancement Plan (“PEP”) and has brought back three wells into production that had been shut down by the previous operator. The work was completed ahead of schedule and under budget by 40% from the original estimate.
The three workovers have increased the daily oil production on the Masten Unit (“Masten”) to 69 BOPD (recorded on September 24th). That is a 49% increase compared to the average daily oil production under the previous operator (46 BOPD for the period April 2022 – July 2023). This means that G2 has finally restored the Masten above its original production volumes since the acquisition day. The operating crew will continue to monitor and perform adjustments to the wells in order to enhance their performances beyond the current production level, now that the wells are back at the expected levels.
The short-term focus will be on assessing the remaining 6 idle wells on the Masten Unit, in order to determine which wells can be economically returned to production and in what order.
A simultaneous focus is to evaluate the potential “behind pipe” (pay zones in the operating wells that have not been opened up/perforated) on all the current and future producing wells on the property.
Once production is stabilized, the mid and long-term plans at Masten are to re-evaluate the potential and configuration for vertical and horizontal drilling opportunities.
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 BOEPD.
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.
Slawek Smulewicz commented: “I couldn’t be more pleased with how the new team is executing on the PEP. It’s not often that you add significant production at a lower cost than expected. But we are not done and will continue to add incremental production while evaluating all the other opportunities in front of us. We would like to thank all the shareholders for their patience and continued support.”
On Behalf of the Board,
For further information, please contact:
VP Corporate Development
O: +1 604 620 8589