A conventional producer in the Permian basin was uneconomic selling natural gas into the pipeline. They turned to 360 Energy to utilize and monetize their gas onsite via the Apex Gas Offtake system. In doing so, the producer was able to generate higher netbacks with better uptime than the traditional pipeline.
The producer was economically stranded with 10+ year old stripper wells in the Southern Permian. These wells only produce natural gas and require central compression to sell the gas into a pipeline. The combination of perpetually low Waha pricing and high LOE meant the producer was losing money every month - a necessary evil to keep the wells flowing and the leases active.
360 Energy deployed (1) of their Apex Gas Offtake units to the customers site. The Apex system was uniquely suited for this site due to the off-spec gas composition and the ability to run at low field pressures.
Apex key components:
- Fully off-grid power and compute infrastructure connected with Starlink
- Mobile natural gas generator and data center
- Deployed and operational within 60 days of signing the contract
The Apex solution proves that economic gas offtake can be deployed anywhere without having to sink capital or sign long term commitments.
Lower LOE: Leased compression was terminated given Apex's ability to run on low field pressure
Gas Monetization: Over 300 Mcf/d of previously uneconomic gas is now being monetized in the Apex distributed compute system
Better Uptime: Apex provided a more reliable operation compared to an unreliable compressor and an overpressured pipeline leading to more predictable and dependable gas flow
360 Energy's Apex Gas Offtake system transformed the economics of this Southern Permian lease - enabling the producer to improve their gas netback while cutting their lease operating expenses. Once again, Apex Gas Offtake proves that a better alternative exists to traditional gas midstream. By solving power, internet, and gas monetization in one integrated system, Apex Gas Offtake created a repeatable blueprint for field-wide deployment.
This case demonstrates the impact of off-grid compute infrastructure in reshaping oilfield economics:
Operators Win: Better lease economics driven by new revenue streams and lower LOE
Landowners Benefit: through more reliable gas production and better gas netbacks
Texas Wins: through increased production and severance tax payments
With 360 Energy, disadvantaged gas markets are a thing of the past. Through continued deployment and operations, Apex Gas Offtake is proving to be the premier alternative to traditional midstream - one that can be deployed quickly without large capital investments or long term commitments.
Struggling with uneconomic gas offtake? Contact us at sales@360energyco.com.
