G2 Energy Corp (CSE:GTOO, OTC:GTGEF) told investors that oil and gas production at its 100%-owned Masten Unit in Cochrane County, Texas, has exceeded the original volumes.
The company said a Production Enhancement Plan (PEP) implemented by its on-the-ground team Oilwell Operators has brought back over 60 barrels (bbls) a day into production since it was appointed in July.
For October, G2 said the Masten Unit had record production of 2,181.07 bbls of oil and 5,323.7 mcf (thousand cubic feet) of gas - or 3,051.69 boe (barrels of oil equivalent).
The Masten Unit has now stabilized at a new production baseline of 70.35 barrels of oil per day, a 61% increase over the average of the previous operator, it added.
G2 said the new baseline for the Masten Unit will help it establish a predictable reserve number required to generate a proven developed producing oil and gas reserves (PDP) value, enabling it to re-finance with the local Texas bank, lowering borrowing costs and increasing its monthly cash flow as a result.
That means it can continue to bring more wells into optimum production.
“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,” G2 CEO Slawek Smulewicz commented in a statement.
“We are just getting started.”
Contact the author at stephen.gunnion@proactiveinvestors.com