NG ENERGY ANNOUNCES THE COMPLETION OF THE ARUCHARA-4 ST-1 WELL AND MAJOR INFRASTRUCTURE ACHIEVEMENTS AT MARIA CONCHITA AND SINU-9
Executive Summary
- Completion of the Aruchara‑4 ST‑1 well at Maria Conchita, now tied into the Central Processing Facility (CPF) and producing up to 15.9 MMcf/d (potentially 19.8 MMcf/d after minor CPF modification).
- Company expects cash‑flow positivity in Q4 2025 and a payback period of ≈3 months for the Aruchara‑4 ST‑1 well at gas prices > US$11/MMBtu.
- Major infrastructure upgrades at Maria Conchita (processing/transport capacity to 30 MMcf/d) and Sinú‑9 (dew‑point handling, total processing 60 MMcf/d, pipeline loop to add 40‑45 MMcf/d transport).
- Gross production now ≈40 MMcf/d, representing ~4 % of Colombia’s domestic gas market; target of 50‑55 MMcf/d by year‑end.
Key Details
- Aruchara‑4 ST‑1 Well
- Completed, perforated across five zones (H1‑H5).
- Initial production: 15.9 MMcf/d at 1,434 psi wellhead pressure.
- Minor CPF modification could raise output to 19.8 MMcf/d (wellhead ≥650 psi) and absolute open flow >20 MMcf/d.
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Gas priced > US$11/MMBtu; payback expected within 3 months.
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Additional Zones Identified
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Zones H3, H4 (continuations of naturally fractured section) and H5 discovered; testing to follow recompletion of Aruchara‑3 well.
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Aruchara‑3 Well Recompletion
- Rig moved for workover; aims to restore prior production of 12 MMcf/d.
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Expected duration: ≈2 weeks.
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Maria Conchita Processing Expansion
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Final upgrades to bring block capacity to 30 MMcf/d (processing + transportation).
– Completion targeted for November 2025. -
Future Drilling Plans
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Aruchara‑5 well slated for Q1 2026 to sustain production levels.
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Sinú‑9 Infrastructure
- New dew‑point handling equipment installed; processing capacity now 60 MMcf/d (40 MMcf/d via CPF‑1 Surenergy, 20 MMcf/d via INFRAES plant).
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Initial pipeline loop to increase transport to 40–45 MMcf/d, completion expected end of year.
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Hechicero‑1X Well
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First well of a six‑well program; spudding planned last week of November 2025.
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Production Milestones
- Gross production reached 40 MMcf/d (~4 % of Colombian domestic market).
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Management targets 50–55 MMcf/d by year‑end across both fields.
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Financial Outlook
- Anticipated cash‑flow positive status in Q4 2025, funded by internally generated cash flow.
- Debt amortized: US$14 M paid to Macquarie; remaining balance US$26 M.
- Expected receipt of US$110 M in 2025 from closing with Maurel & Prom (subject to regulatory approval).
Notable Quotes
- Jorge Fonseca, CEO: “We are now positioned to significantly increase production volumes and expect to exit the year with 50‑55 MMcf/d of gross production… The Aruchara‑4 ST‑1 well has been an outstanding success.”
- Brian Paes‑Braga, Executive Chairman: “Market pricing continues to rise; new volumes from Maria Conchita are expected to sell at >US$11/MMBtu and the well is projected to pay back within three months. We expect cash‑flow positivity with CAPEX funded internally.”