Drill Results
NG ENERGY ANNOUNCES SIGNIFICANT NEW GAS DISCOVERY IN SINU-9 BLOCK IN COLOMBIA
NG Energy Validates Sinu-9 Upside with New Gas Interval Discovery
Executive Summary
- Headline: NG ENERGY ANNOUNCES SIGNIFICANT NEW GAS DISCOVERY IN SINU-9 BLOCK IN COLOMBIA.
- Date: April 28, 2026.
- Key Discovery: Hechicero-1X well identified a new Pre-CDO-San Cayetano interval in addition to CDO and Porquero formations.
- Production Test: Initial test delivered 26.4 MMcf/d at 1,800 psi well-head pressure on a 43/128 choke.
- Infrastructure: Transportation capacity currently 30 MMcf/d; pipeline loop completion (end of May) to increase to 40 MMcf/d; potential for 90 MMcf/d by H2 2026 via INFRAES construction.
- Corporate Action: Graduation from TSX Venture Exchange (TSXV) to Toronto Stock Exchange (TSX) effective April 30, 2026.
- Financials: Received US$42.5 million cash payment from Maurel & Prom (M&P) transaction in April; additional US$42.5 million expected July 2026. C$7.4 million raised via warrant/option exercises YTD.
- Operations: Aruchara-5 well at Maria Conchita spudded April 6, currently at 7,370 ft depth (Target: 9,100 ft).
Material Impact
- Positive Validation of Exploration Strategy: The discovery of the Pre-CDO-San Cayetano interval expands the prospective footprint beyond primary targets. This was not explicitly detailed in the February 2026 reserves report, suggesting upside to future reserve bookings.
- Execution Confirmation: The 26.4 MMcf/d test rate validates the drilling program initiated in February. Management had projected a six-well campaign; this result confirms technical success on the first well of that program.
- Infrastructure De-risking: The commitment to expand capacity to 90 MMcf/d by H2 2026 addresses previous bottlenecks (30 MMcf/d limit), supporting higher production volumes without immediate capital constraints for NGE (operator M&P handles infrastructure).
- TSX Graduation: Uplisting to the TSX is a material corporate milestone that typically improves liquidity and institutional access, reducing the "venture" discount. This was anticipated since March 2026 filing but now confirmed effective April 30.
- Cash Flow Visibility: Receipt of the second tranche ($42.5M) from the M&P deal solidifies the balance sheet. Combined with operating cash flow (Q3 2025: $7.9M), near-term dilution risk is minimized.
- Market Reaction Context: Stock price has consolidated between $1.37-$1.45 in April following a March high of $1.70. The news provides a catalyst to re-test resistance levels, though the market may have partially priced in TSX graduation and M&P partnership success earlier in Q1.
GASX · Price
Company Overview
- Company: NG Energy International Corp. is an energy company focused on natural gas development in Colombia.
- Flagship Projects:
- Sinu-9 Block (72% WI pre-deal, 39% post-deal): Primary growth driver. Operator Maurel & Prom (61% WI). Commercial production began March 2025.
- Maria Conchita Block (80% WI): Mature producing asset with ongoing workovers and drilling (Aruchara-5).
- Development Status: Transitioning from exploration to development phase. Sinu-9 infrastructure is being expanded to accommodate growth. Maria Conchita production stabilized after mechanical issues resolved in Dec 2025.
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May 28, 2026 · 07:00