G2 Energy Corp. · CSE:GTOO
G2 Energy — Investor Presentation (December 2021)
17 slides from G2 Energy's investor presentation, December 2021
Slide 1: Identifying Producing Assets for Acquisition to deliver cash flow with low risk
Identifying Producing Assets for Acquisition to deliver cash flow with low risk Masten Unit INVESTOR PRESENTATION December 2021
Slide 2: Disclaimer
Disclaimer The Recipient agrees that this corporate presentation (“Presentation”) contains certain proprietary and non-public information and is provided exclusively on a confidential basis. This Presentation is based on information provided by the shareholders, consultants and employees of G2 Techn
Slide 3: Executive Summary
EXECUTIVE SUMMARY • G2 is seeking to raise US$5.0 MM to fund the acquisition of the Masten Unit Field Location Map – Permian Basin within the giant Levelland Field located on Northwestern Shelf of the Permian Basin. Funds will be used to acquire the asset, initiate a field wide optimization and dril
Slide 4: Northwestern Shelf, Permian Basin
Northwestern Shelf, Permian Basin History and Geology • The Northwest Shelf of the Permian Basin was formed by sea fluctuations that deposited carbonate sequences (reefs) along the shallow shores of the northern boundary of the Permian sea • This carbonate trend is known as the San Andres formation
Slide 5: Masten Unit (Levelland Field)
Masten Unit (Levelland Field) Field Location and Characteristics Production • 70 BOPD, 100 MCFD • Eighteen active producing wells • Six Injectors • 9 Idle wells Cash Flow • At current prices, operational cash flow is $100,000/month WI/NRI • Working Interest: 100% • High Net Revenue Interest: 81.3% i
Slide 6: Masten Unit – Production History
Masten Unit – Production History Oct-2021 Gross Production: 285 BOPD & 131 MCFD (185 BOPD / 88 MCFD Net) RMB Acquires, optimizes lift and increases Unocal/Chevron sells to production from 40 Steward Energy. Steward bopd to 80 bopd Energy increases water injection but fails to optimize Water lift Oil
Slide 7: Masten Unit – Upside Potential: Horizontal Well Drilling
Masten Unit – Upside Potential Horizontal Well Drilling Offset Horizontal Well Profiles • Offset producers have drilled six horizontal San Andres wells since 2016 • Wells have all been highly successful – IP Modern N/S horizontal analogy rates at 300 bopd/250 mcfd with shallow 200 BOPD ~ flat declin
Slide 8: Masten Unit – Upside Potential: Full Scale Waterflood with Infill Drilling
Masten Unit – Upside Potential Full Scale Waterflood with Infill Drilling Apache Corp Offset Waterfloods – Fully Developed • Initial waterflood response met expectations and proved viability of large scale waterflood • Full implementation was never attempted and waterflood used only produced water f
Slide 9: Masten Unit - Reserves
Masten Unit - Reserves RESERVES SUMMARY (WillRich & Associates) Net Reserves Proved Reserves Oil (MBO) Gas (MMCF) Total MBOE 6:1 NPV10 ($M) Development Costs ($M) PDP 406 534 495 $4,556 0 Probable Reserves PUD 934 1,066 1,112 $16,249 $8,800 Total 1,340 1,600 1,606 $20,805 $8,800 Preliminary Reserve
Slide 10: Photos from the DD field trip – Nov 18th, 2021
Masten Unit photos from the DD field trip – Nov 18th, 2021 10
Slide 11: Financial Model - Assumptions
Financial Model - Assumptions Financial • Acquisition Cost - $4 MM Source of Funds: • Capital Program Funding - $2 MM Debt - $5 MM • Working Capital - $1 MM Equity - $2 MM • Total Funding - $7 MM[1] • Price Deck set at flat $70/bbl WTI and $3.50/MCF Henry Hub Gas • G&A set at $500K per year, interes
Slide 12: Production Profile
Production Profile PRODUCTION PROFILE BY CATEGORY 600 500 400 Waterflood Expansion (Not included in financial forecasts) 300 200 PUD / 4 Horizontal Wells 100 0 2022 2023 2024 2025 2026 2027 2028 2029 2030 PDP Horizontal Wells Waterflood 12
Slide 13: Cash Flow Projections
Cash Flow Projections Annual EBITDA (US$MM) Annual CAPEX (US$MM) 7.1 4.4 4.4 6.2 5.3 4.5 2.3 0.0 0.0 0.0 0.0 2022 2023 2024 2025 2026 2022 2023 2024 2025 2026 2027 Free Cash Flow & Cash Balance (US$MM) Cumulative Cash Flow (US$MM) 25 80 17.1 20 13.8 15 60 9.9 10 6.5 4.8 3.9 3.3 40 5 1.2 5.1 0 (2.6)
Slide 14: Pro-Forma Financial Outlook
Pro-Forma Financial Outlook G2 Masten Unit 10 Year Annual Summary Financials 2022 2023 2024 2025 2026 2027 2028 2029 2030 Production 12 12 12 12 12 12 12 12 12 Oil 48,632 109,611 123,354 96,124 83,055 74,533 68,111 62,129 56,887 Gas 64,657 138,011 161,993 123,934 102,118 87,636 77,413 69,267 62,988
Slide 15: Investment Highlights
Investment Highlights 1 Focused operation in a large and well defined oil & gas producing region Former Unocal/Chevron asset with solid infrastructure, full automation and the facilities to handle significantly 2 increased production Horizontal well upside - Offset operators have drilled highly succ
Slide 16: Appendix - Glossary
Appendix - Glossary “boe” is defined as barrel of oil equivalent, using the ratio of 6 mcf of Natural Gas to 1 bbl of Crude Oil. This is based on energy conversion and does not reflect the current economic difference between the value of 1 MCF of Natural Gas and 1 bbl of Crude Oil. “boepd” is define
Slide 17: Contact Us
Contact Us Slawek Smulewicz slawek@g2technologies.biz 1-604-765-5684