G2 Energy Corp (CSE:GTOO, OTC:GTGEF) told investors that it has brought three wells at its cornerstone-producing asset, the Masten Unit in Cochrane County, Texas, back into production, increasing daily oil output by 49% as it continues to execute its Production Enhancement Plan (PEP).
The company noted in a statement that the work was completed ahead of schedule and 40% below the original estimates.
The three workovers have increased daily output to 69 barrels of oil a day (bopd), with G2 restoring Masten above its original production volumes since the acquisition day. The previous operator produced 46 bopd between April 2022 and July 2023.
Now that the wells are back at the expected levels, G2 said the operating crew at Masten will continue to monitor and perform adjustments to the wells in order to enhance their performances beyond the current production level.
“I couldn’t be more pleased with how the new team is executing on the PEP,” G2 CEO Slawek Smulewicz commented.
“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.”
G2 said its short-term focus will be on assessing the remaining six idle wells on the Masten Unit, in order to determine which wells can be economically returned to production and in what order.
At the same time, it will 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, it said the mid and long-term plans at Masten are to re-evaluate the potential and configuration for vertical and horizontal drilling opportunities.
Contact the author at stephen.gunnion@proactiveinvestors.com