NG Energy spuds Aruchara-4; Sinu-9 hits 22 MMcf/d

Executive Summary

• NG Energy International Corp. has spudded the Aruchara-4 well at the Maria Conchita field, targeting the Jimol formation to develop H1A/H1B accumulations and explore reserve extensions.
• Production at the Sinu-9 field has increased to 22 MMcf/d, meeting quality standards, with expectations to reach 30 MMcf/d upon completion of dew point handling equipment by late August.
• Infrastructure expansion is underway with Infraes to double transportation capacity via a twin pipeline project, aiming for 60 MMcf/d capacity by Q1 2026.

Key Details

• Maria Conchita Operations:
  • Aruchara-4 Well: Spudded and currently drilling; targets the Jimol formation to develop H1A and H1B accumulations and explore H2 AA section, H3, and H4 fractures.
  • Drilling Plan: Drilling to a total depth of 10,000 feet in four phases.
  • Timeline: Expected to be tied in by the end of September 2025.
  • Subsequent Operations: Following Aruchara-4, the rig will perform a workover and recompletion of Aruchara-3 to address a downhole mechanical obstruction and restore full production, before commencing drilling of Aruchara-5.
• Sinu-9 Production & Infrastructure:
  • Current Production: Aggregate gross production reached 22 MMcf/d, meeting Unified Transportation Regulation's dew point quality standards.
  • Immediate Capacity Increase: Installation of dew point handling equipment at the central processing facility is nearing completion (expected end of August), which will increase aggregate gross production up to 30 MMcf/d, filling current pipeline capacity.
  • Twin Pipeline Project (with Infraes): Construction underway to double transportation capacity in two phases:
    • Phase 1: An 18-kilometre loop from Jobo along the existing right of way, increasing capacity to 40–45 MMcf/d.
    • Phase 2: Full twin pipeline, increasing capacity to 60 MMcf/d, expected completion in Q1 2026.
• Company Context:
  • NG Energy is targeting a production goal of 200 MMcf/d over the next two to three years.
  • The company has raised over $200 million in debt and equity and has constructed three facilities with gross processing/transportation capacity of 60 MMcf/d expected in Q3 2025.