Environmental

Climate change-related risk is a conversation that every business should take seriously, and we at Vencer believe in addressing these concerns for our stakeholders. Therefore, Vencer is actively addressing climate-related risks while pursuing opportunities in a lower-carbon future. We support the aim of the Paris Climate Agreement and acknowledge the importance of reducing global emissions to limit global temperature increase. We acknowledge our role as an energy company in driving a lower-carbon future. We endeavor to reduce our direct operational greenhouse gas (GHG) emissions and continue to integrate renewables into our operations to limit GHG emissions where possible, while exploring new technologies that limit our climate impact and our methane emissions, a potent greenhouse gas. Our evaluation of the climate-related risks and opportunities facing our business informs our corporate strategy.

Methane management is part of Vencer’s approach to prudent oil and gas operations. Methane is the second most abundant anthropogenic GHG after carbon dioxide (CO2), accounting for about 20 percent of global emissions. Methane is more than 25 times as potent as carbon dioxide at trapping heat in the atmosphereⁱ . Therefore, Vencer has undertaken the following projects to minimize its methane emissions:

1. Robust Fugitive Emission Monitoring: Vencer maintains a robust Leak Detection and Repair (LDAR) program employing state of the art infrared cameras to survey our facilities for leaks. We also rely on other forms of leak detection such a EPA Method 21 devices, and audio, visual, olfactory (AVOs) observations. All of these inspections meet or exceeds regulated mandates.
2. Low-Bleed Pneumatic Devices: Vencer facilities have been retrofitted with low-bleed pneumatic equipment that drastically reduce methane emissions form gas-operated devices used in production operations.
3. Instrument Air Skids: In 2022, Vencer began installing instrument air skids at its facilities. These skids provide compressed atmospheric air to take the place of natural gas as the motive force for our pneumatic pumps and actuators. This cuts our pneumatics’ methane emissions to zero.

[i] Reference: https://www.epa.gov/gmi/importance-methane

In 2021, Vencer acquired an asset where routine flaring was commonplace. The company has worked diligently to curtail this flaring as part of its commitment to environmental stewardship. The company has set KPIs that monetarily incentivize our teams to find alternatives to flaring. The company will keep its flaring volume below 1% of its total gross production volumes.

Vencer takes pride in minimizing its impact to the surrounding environment. To that end, we carefully plan and engineer our sites to “do more with less.” We look to use space efficiently, minimizing our disturbance of the soil and biodiversity resources in the Permian Basin. Our facilities all exceed Texas and Federal standards for spill prevention. Moreover, when permanently closing sites, Vencer takes care to return the land to its natural state.

Vencer continues to look for ways to reduce it’s emissions. Moreover, Vencer spends capital to achieve emission reductions.

1. Use of Solar Power: Many outside the industry are surprised by the oil and gas industry’s reliance on solar power. Solar panels are found all around our sites providing electric power for communication and automation equipment. Also, Vencer employs solar-powered pumps across its assets that would otherwise rely on natural gas to operate. Similar to the instrument air skids mentioned in the Methane Management section, these solar pumps are replacing units that would otherwise vent methane, a potent greenhouse gas, to the atmosphere.
2. Electrification: Oil and natural gas development often occurs in areas that are far from a commercial power supply, requiring operators to use power generators, gas-powered engines, and gas-actuated pneumatic equipment which produce emissions. We are seeking solutions that move us away from these emission generators.