NG Energy hits 40 MMcf/d at Sinu-9, Maria Conchita

Executive Summary

• NG Energy International Corp. reports the successful completion and tie-in of the Aruchara-4 ST-1 well at its Maria Conchita project, which is currently producing up to 15.9 MMcf/d with high wellhead pressure.
• The company highlights significant infrastructure upgrades at both Maria Conchita and Sinu-9, including increased processing capacity and pipeline expansions, positioning it to reach gross production of 40 MMcf/d (approx. 4% of Colombia's domestic market).
• Management anticipates the company will become cash flow positive in Q4 2025, with the Aruchara-4 ST-1 well expected to pay back within three months due to favorable gas pricing (> $11.00/MMBtu).

Key Details

• Aruchara-4 ST-1 Well Performance:
  • Successfully drilled, perforated, and completed across five zones (H1-H5).
  • Initial production from H1 and H2 zones reached up to 15.9 MMcf/d with wellhead pressure of 1,434 psi.
  • Minor CPF modifications could increase capacity to 19.8 MMcf/d (pressure > 650 psi) or absolute open flow to 20 MMcf/d+.
  • Gas volumes in excess of existing contracts are expected to be sold at > $11.00 (U.S.) per MMBtu.
  • Payback period for the well is estimated at three months.
• Maria Conchita Project Updates:
  • Drilling rig moving to Aruchara-3 well for recompletion to restore full production capability (previously producing 12 MMcf/d before mechanical obstruction).
  • Recompletion expected to take two weeks, with full production capability anticipated by end of November 2025.
  • Processing facility expansion bringing block total capacity to 30 MMcf/d, with final upgrades expected in November 2025.
  • Future plans include drilling Aruchara-5 well in Q1 2026 to sustain production levels.
  • Additional zones (H3, H4, H5) identified and completed; testing planned after Aruchara-3 recompletion.
• Sinu-9 Project Updates:
  • Dew point handling equipment installed at CPF-1, increasing total processing capacity to 60 MMcf/d (40 MMcf/d via CPF-1 Surenergy, 20 MMcf/d via INFRAES plant).
  • Steady-state production increased to 24.0 MMcf/d.
  • Initial pipeline loop construction progressing, expected to increase transportation capacity to 40-45 MMcf/d by end of year.
  • Hechicero-1X well (first of six-well program) targeted to be spudded in the last week of November 2025.
• Financial and Strategic Outlook:
  • Company expects to be cash flow positive in Q4 2025.
  • Ongoing capex to be funded from internally generated cash flow.
  • Debt reduction: Amortized $14-million (U.S.) of debt with Macquarie Group, leaving a balance of $26-million (U.S.).
  • Expected to receive $110-million (U.S.) in cash in 2025 based on closing schedule with Maurel & Prom.
  • Transaction with Establissemens Maurel & Prom S.A. remains subject to regulatory approvals (ANH), anticipated in Q4 2025.
  • Current gross production stands at 40 MMcf/d.

Notable Quotes

• Jorge Fonseca, CEO: "After a year of building out infrastructure capacity and addressing the dew point issue at Sinu-9, NGE is now in a position to significantly increase production volumes and poised to exit the year with 50 to 55 MMcf/d of gross production between the two fields... We look forward to continuing our drilling efforts with our upcoming six well campaign at Sinu-9 and drilling the Aruchara-5 well thereby unlocking the full potential at this high-impact asset."
• Brian Paes-Braga, Executive Chairman: "I want to thank the team for the exceptional work that has been done over the past year putting the company in a position to continue to meaningfully scale production in the year ahead... The company has a clean balance sheet, have amortized $14-million (U.S.) of debt with Macquarie Group, leaving a balance of just $26-million (U.S.) and expects to receive $110-million (U.S.) in cash in 2025 based on the expected closing schedule with Maurel & Prom."