NG Energy – An Operational Review Of 2022 And Growth Strategy For More Nat Gas Production In 2023
Serafino Iacono, CEO of NG Energy (TSX.V:GASX – OTC:GASXF), and Jorge (George) Fonseca Chaumer, the new CFO, join us to review the key milestones completed in 2022 and looking forward to the Company guidance moving into 2023 for the natural gas and light oil focused assets in Colombia. The Company has 3 projects, but the majority of the work was completed last year at the Maria Conchita and SINU 9 projects, and they will see the continued growth and focus for the year to come.
In January, the Company announced completion of gas plant facilities at the Maria Conchita block, and in August commenced gas production from Maria Conchita. Key Objectives at Maria Conchita for 2023 will be to drill an additional 2nd well, to stabilize production between 16-20 MMSCF/d based on management’s expectations in Q1-23.
In May, the Company announced spudding of the Magico-1X well, the first target at the SINU-9 Project, and in July, announced a gas discovery at Magico-1X in the Ciénaga de Oro formation. In August flow testing from Magico-1X came from three zones with testing demonstrating 15 MMSCFD at the SINU-9 block. In September, the Company provided updated reserves and resources results from the Magico-1x well, adding gross 3P undeveloped reserves of 36.2 BCF, and announced spudding of the Brujo1X well. Then in November, the Company successfully tested 11.2, 18.2 and 21.2 MMSCFD from three zones in the Ciénaga de Oro formation at the Brujo-1X well (51 MMSCF/d combined).
One of the key objectives at SINU-9 for 2023 is to secure a large-scale pipeline partner for the construction of infrastructure and a long-term production agreement in Q1-23. The company is evaluating options to commence early production from successfully completed wells in the first half of the year, with a goal to drill, test and complete the Hechicero-1X well in Q1-23.
One other key development that happened in 2022, with ramifications for work in 2023 was the announcement of light crude oil prospective resources in the western region of the SINU-9 block with a best estimate recoverable resource of 280 MMboe. NG Energy’s partners and the government of Columbia is very interested in evaluating these oil prospects in the western region of the SINU-9 block for development and future production.
If you have any follow up questions for Serafino regarding NG Energy, then please email us at Fleck@kereport.com or Shad@kereport.com.