Toronto-based NG Energy International Corp. has signed additional long-term agreements for natural gas sales from the Maria Conchita Block.
The agreements expand on the company’s previous commitments with Vanti S.A E.S.P, Gases del Caribe S.A E.S.P and Gases del Occidente S.A E.S.P. NG Energy has also secured additional commitments with GEAM Grupo Energético de las Americas S.A.S E.S.P and Empresas Públicas de Medellin E.S.P., it said in a recent news release.
With the latest agreements in place, the company has now sold approximately 14.8 million cubic feet per day (MMcfpd) of production under long-term natural gas sales contracts for a period of three to five years, with the balance of production from the Maria Conchita Block being sold into the spot market on an interruptible basis, NG Energy said.
According to the company, the price for the region is up 36.5 percent from the same time last year, due to the overall economic growth of the region, the demand for natural gas outpacing the supply during this time of El Niño, and the unique characteristics of natural gas as a critical energy source for Colombia.
NG Energy CEO Brian Paes-Braga said, "We are experiencing continued unprecedented demand for our natural gas throughout the ramp-up of production at Maria Conchita and are proud to be a critical and reliable solution in this environment for our highly valued customers. Given the continued demand for natural gas in Colombia as a critical transition fuel, re-scoping of Maria Conchita, after 3 DSTs tested a combined 65 MMcf/d across three zones last year at Aruchara-3, continues to be a top priority, as we endeavour to bring additional and much needed energy to the Caribbean region of Colombia”.
In a separate news release, NG Energy said it has allotted total capital of $23 million to $27 million for 2024. The company is also targeting growth of 150 percent year over year for 2024.
"NGE's 2024 Budget prioritizes our commitment to maintaining a healthy balance sheet while achieving top-tier year-over-year production growth and continued growth of reserves,” Paes-Brage said. “After laying significant groundwork in both development and production in 2023, achieving over 200 percent production growth and over 500 percent in reserve growth, we look forward to another year of triple digit production growth in 2024 as we bring on-line the much-anticipated Phase 1 of our Company's flagship Sinu-9 Block”.
“Our early exploration success at Sinu-9 has demonstrated the field's potential to be one of the most critical sources of onshore natural gas supply in Colombia; in this regard, we are very excited to resume upstream drilling activities at Sinu-9 with the drilling of the Hechicero-1X exploration well included in our 2024 Budget,” he continued.
“At Maria Conchita, the company is focused on the necessary activities related to maintaining and increasing our production, including a workover program at the Aruchara-1 well and the analysis of production facilities and marketing routes for a potential meaningful expansion. We are also very encouraged by the discovery of the new H3/H4 zones, which contributed 570 feet of net gas pay during the successful drilling of the Aruchara-3 development well in 2023 and we look forward to the findings of a geophysics study and the analysis of the fractured areas in these zones in 2024,” he concluded.
NG Energy International Corp. is a natural gas exploration and production company with operations in Colombia.
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