NG Energy increases Colombian oil, natural gas reserves with new drilling campaign

(WO) – NG Energy International Corp., along with its partners Olympo and Duemav in the Maria Conchita Block and with Clean Energy and Oleum in the SN9 Block, increased reserves at both Maria Conchita and Sinu-9 as part of an updated independent analysis by Sproule International Limited. The updated reserves and resources incorporate the recently drilled Aruchara-3 well at Maria Conchita, which includes the newly encountered section in zone H4 in addition to zones H1 and H2 and finalized plans for construction of infrastructure at Sinu-9.  

Source: NG Energy International

Serafino Iacono, CEO of NGE, commented, “The report validates the incredible achievements by our team and our partners after encountering a new naturally fractured natural gas bearing section in the drilling of Aruchara-3 and finalizing contracts to build production infrastructure at Sinu-9.”

Sinu-9 Block highlights

• Company gross Proved (1P) reserves of 26.7 Bcf for before-tax NPV10 of $22.0 million.
• Company gross Proved + Probable (2P) reserves of 114.36 Bcf for before-tax NPV10 of $150.3 million.
• Company gross Proved + Probable + Possible (3P) reserves of 245.3 Bcf for before-tax NPV10 of $331.0 million.
• Company gross unrisked best estimate contingent resources (development pending) of 130.2 Bcf for before-tax NPV10 of $78.5 million.
• Company gross unrisked best estimate prospective resources of 131 Bcf for before-tax NPV10 of $264.4 million.

Total gas is planned to be produced through new and existing wellbores and a pipeline to a processing facility using established recovery technology. The development plan for the reserves area located within Sinu-9 includes the completion of the Brujo-1X, as well as drilling a total of 12 wells; 5 in the Hechicero field, 4 in the Magico field and 3 in the Brujo field.

Production will be processed through a dehydration and compression facility as well as a gas pipeline from Sinu-9 to Jobo station. The development plan for the contingent resources area located within Sinu-9 includes the drilling of 5 locations for the low estimate scenario, 12 locations for the best estimate scenario and 18 locations for the high estimate scenario. Production will be processed through new facilities.

Due to the number of reservoirs identified in the area, the number of wells may change by category according to the uncertainty identified in the reservoir areas, since they are not completely concentric with respect to each other. The development plan for the prospective resources area located within Sinu-9 includes the drilling of 13 locations.

Maria Conchita Block highlights:

• Company gross Proved (1P) reserves of 25.0 Bcf and 50 MMbbl of condensate for before-tax NPV10 of $75.4 million.
• Company gross Proved + Probable (2P) reserves of 47.2 Bcf and 75 MMbbl of condensate for before-tax NPV10 of $34.1 million.
• Company gross Proved + Probable + Possible (3P) reserves of 59.5 Bcf and 94 MMbbl of condensate for before-tax NPV10 of $135.8 million.
• Company gross unrisked best estimate contingent resources of 65.6 Bcf for before-tax NPV10 of $69.9 million.
• Company gross unrisked best estimate prospective resources of 53.0 Bcf for beforetax NPV10 of $36.0 million.

Total gas is planned to be produced through new and existing wellbores and a pipeline to a processing facility using established recovery technology. The development plan for the reserves area located within Maria Conchita includes the production maintenance of Aruchara-1 and Aruchara-3, as well as the drilling of a total of 5 wells; 2 in the Aruchara field and 3 in the Tinka field on 425 acres spacing. Production will be processed through an existing facility.

The development plan for the contingent resources area located within Maria Conchita includes the drilling of a total of 10 wells; 9 in the Aruchara field and 1 in the Tinka field on 425 acres spacing. Additionally, expansion of the existing facility is included to a total capacity of 60 MMcfd for the best estimate scenario. Due to the number of reservoirs identified in the area, the number of wells may change by category according to the uncertainty identified in reservoir areas, since they are not completely centric with respect to each other.  

The development plan for the prospective resources area located within Maria Conchita include the drilling of 10 wells on 425 acres spacing across the intervals of interest H2, H2B and H3. The natural gas and condensate reserves and resources were estimated based on the technically recoverable volume, operating and capital costs and the terms of the fiscal regime.

The development forecast presented in the Sinu-9 and Maria Conchita reports were based on a complete evaluation of the company’s lands for the zones identified to be prospective for economic development. The development forecast represents full development of the lands for which reserves and resources could be assigned. Additional potential could exist within zones which were not identified by the company.

Lead image: Sinu-9 (Source: NG Energy International)