NG Energy receives Colombian approval for Sinu-9 deals

Executive Summary

• NG Energy International Corp. has received approval from the Colombian National Hydrocarbon Agency (ANH) for its transactions regarding the Sinu-9 block.
• The approval covers the sale of a 40% working interest and operatorship to Etablissements Maurel & Prom S.A. for $150 million USD, as well as the acquisition of an additional 28% working interest from minority partners.
• With this regulatory approval, all necessary conditions are met, and the parties will proceed toward closing, resulting in NG Energy holding a 39% non-operating interest and Maurel & Prom holding a 61% operating interest.

Key Details

• Regulatory Approval: Received approval from the Colombian National Hydrocarbon Agency (ANH) for the Sinu-9 transactions.
• Transaction Structure (Sale): Sale of a 40-per-cent working interest and operatorship of the Sinu-9 block to Etablissements Maurel & Prom S.A.
• Consideration: Total cash consideration of $150-million (U.S.) for the sale portion.
• Transaction Structure (Acquisition): Acquisition of a collective 28-per-cent working interest in the Sinu-9 block from minority partners, in conjunction with Maurel & Prom.
• Post-Closing Ownership:
  • NG Energy International Corp.: 39-per-cent non-operating working interest.
  • Etablissements Maurel & Prom S.A.: 61-per-cent operating working interest.
• Next Steps: Parties will proceed toward closing by completing remaining customary closing conditions.
• Operational Outlook: CEO Jorge Fonseca announced a planned six-well drilling campaign with new operating partner Maurel & Prom.

Notable Quotes

• "With ANH approval received, the last major hurdle to complete the Sinu-9 transactions has been met. We thank the ANH for its support in this transaction and look forward to a pivotal year of development at Sinu-9 as we launch a six-well drilling campaign with our new operating partner Maurel & Prom." — Jorge Fonseca, Chief Executive Officer