G2 Energy Corp. · CSE:GTOO
G2 Energy — Investor Presentation (March 2022)
23 slides from G2 Energy's investor presentation, March 2022
Slide 1: Phase One Growth Plan Investor Presentation
STRICTLY PRIVATE AND CONFIDENTIAL Acquiring producing assets to deliver low risk cashflow Phase One Growth Plan INVESTOR PRESENTATION
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 raising up to $2.0MM to fund its first acquisition (the Masten Unit) within the prolific Northwest Shelf of the Permian Basin. The funds will be used to acquire the asset, initiate a field-wide optimization and drill up to four horizontal wells. This represents G2’s first ste
Slide 4: G2 Energy (CSE:GTOO)
G2 Energy (CSE:GTOO) G2 Energy is a publicly-traded company with a pre-acquisition, pre-financing market capitalization of $3.036 MM G2 Technologies Corp (the "Company" or "G2") was incorporated on October 9, 2014 in British Columbia under the Business Description Corporations Act. Until March 31st,
Slide 5: G2 Management Team
G2 Management Team The G2 Energy team is highly experienced with acquiring, financing, growing and creating profitable publicly traded companies. G2’s management team has a wide variety of experience not commonly found within smaller oil & gas operations. Mr. Smulewicz brings over 30 years of inte
Slide 6: Asset Overview
Asset Overview Masten Unit, Levelland Field Production 70 BOPD, 100 MCFD, 80-85 net BOEPD 18 Active Producing Wells 6 Injectors 9 Idle Wells Cash Flow At $80 Flat WTI, operational cash flow is USD$100,000/month At $100 Flat WTI, operational cash flow is USD $140,000/month WI/NRI Workin
Slide 7: Production History
Production History Gross Summary Plot San Andres Proved Producing November 2021 Gross Production 75 BOPD & 161 MCFD RMB Operating LLC (65 BOPD / 126 MCFD Net) Levelland, Cochran, TX 85 net BOEPD 1994 - Unocal unitizes multiple leases and begins small scale waterflood. Production increases 10X from 1
Slide 8: Upside Potential: Idle Wells and Recompletions
Upside Potential: Idle Wells and Recompletions Immediate: Well C5 Currently produces from lowest P4 Four wells have workover programs ready to implement. These will zone and has watered out. be completed in first month of operation. Uphole recompletion to P1 zone and will add 12 BOPD and 120 MCFD
Slide 9: Upside Potential: Horizontal Wells
Upside Potential: Horizontal Wells Horizontal well drilling in the NW portion of the Levelland field has grown steadily since 2010. To date, 27 successful horizontal wells have been drilled Wells on average IP at 190 bopd and 300 mcfd with an average EUR of 257 MBOE Normalized / Type Curve Propo
Slide 10: Full Scale Waterflooding with Infill Drilling
Full Scale Waterflooding Fully Developed Output Expectations: Apache Corp Offset Waterfloods with Infill Drilling The Levelland field is well known for its response to waterflooding. Apache and Occidental produce over 20,000 bopd from established and highly successful waterfloods Upon unitizatio
Slide 11: Bolt-On Acquisitions
Bolt-On Acquisitions G2 Energy Intends to bid on nearby (3 miles) operation currently being marketed by a third party. Leases produce 130 boepd and total 6,000 acres. Acquisition provides immediate near-term RTP opportunities and significant horizontal drilling upside. G2 Energy is currently in
Slide 12: Masten Unit Reserves
Masten Unit Reserves RESERVES SUMMARY (Willrich & Associates) Net Reserves Proved Reserves Oil (MBO) Gas (MMCF) Total MBOE 6:1 NPV10 ($M) Development Costs ($M) PDP 445 579 542 $7,051 0 PDBP/PDNP 79 283 128 $1,573 75 Total Proved 524 822 670 $8,625 75 Probable/Possible Reserves PDNP/PUD 613 748 737
Slide 13: Certified Third Party Reserves Forecast at March 2022 Strip
Certified Third Party Reserves Forecast at March 2022 Strip 13
Slide 14: Masten Unit Financial Model Assumptions
Masten Unit Financial Model Assumptions Financial Acquisition Cost - $4 MM / ~$3.5 MM after Post-Close True-Up Source of Funds: Price Deck set at flat $80/BBL WTI and $3.50/MCF Henry Hub Gas Debt - $2.5 MM $4.5 MM initial raise between debt and equity; Equity - $2.0 MM leaving ~$1 MM in wo
Slide 15: Masten Unit Production Profile
Masten Unit Production Profile PRODUCTION PROFILE BY CATEGORY 700 600 500 Waterflood Expansion (Not included in financial forecasts) 400 300 PUD / 4 Horizontal Wells 200 100 Idle Well/ Uphole Recompletions (PDNP) Production Base (PDP) Production 0 2022 2023 2024 2025 2026 2027 2028 2029 2030 PDP PDN
Slide 16: Masten Unit Cash Flow Projections
Masten Unit Cash Flow Projections Annual EBITDA (US$MM) Annual CAPEX (US$MM) 4.6 4.6 6.9 6.2 Drill Program 5.0 4.3 1.3 0.1 0.1 0.1 0.1 2022 2023 2024 2025 2026 2022 2023 2024 2025 2026 2027 Free Cash Flow & Cash Balance (US$MM) Cumulative Cash Flow (US$MM) 18.2 19.2 14.2 15.2 10.2 9.2 6.0 5.0 1.3 2.
Slide 17: Pro-Forma Financial Outlook – $80 WTI
Pro-Forma Financial Outlook – $80 WTI 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 23,104 73,116 116,595 103,608 85,107 70,433 58,812 49,474 42,045 Gas 60,927 137,005 202,144 223,881 184,212 152,688 127,498 10
Slide 18: Phase One Growth Plan
Phase One Growth Plan Acquisitions Acquire Masten Unit - April 2022 Acquisition One - Acquire and close on Unit producing 130 bopd (sealed bid due March 24th, 2022) – July 2022 Goals Acquisition Two - Successfully conclude negotiations on adjacent leases producing 40 bopd – July 2022 2,000 b
Slide 19: Phase One Growth Plan Production Profile
Phase One Growth Plan Production Profile PRODUCTION PROFILE BY CATEGORY 2,500 2,000 1,500 BOEPD 1,000 500 0 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26 3Q26 4Q26 1Q27 2Q27 3Q27 4Q27 Masten Unit Acquistion One Acquistion Two Acquistion Three Acquistion Fo
Slide 20: Phase One Growth Plan – Revenue, Cash Flow & Production
Phase One Growth Plan – Revenue, Cash Flow & Production Revenue Forecast Operational Cash Flow 70 2500 50 2500 60 2000 40 2000 50 40 1500 30 1500 BOEPD BOEPD 30 $MM $MM 1000 20 1000 20 500 10 500 10 0 0 0 0 2022 2023 2024 2025 2026 2022 2023 2024 2025 2026 Revenue Production Operational Cash Flow Pr
Slide 21: Investment Highlights
Investment Highlights 1 Focused operation in a large and well defined oil & gas producing region 2 Former Unocal/Chevron asset with solid infrastructure, full automation and facilities to handle increased production Field Upside Potential – Waterflooding and horizontal well drilling program increase
Slide 22: Contact Us
Contact Us Slawek Smulewicz info@g2.energy +1-604-765-5684
Slide 23: Glossary
Glossary TERM MEANING TERM MEANING M Thousand MM Million 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 BOE Natural Gas and 1 bbl of Crude