Assets

Overview of
Target Opportunities

MARIA CONCHITA (80% WI)

  • 2P Reserves of 27.7 Bcf
  • Best Estimate Gross Prospective Resources (prospects) Unrisked 155.9 Bcf (Risked 31.4 Bcf)
  • Tested 7-11 MMcf/d through separate DST tests in 3 different zones with 48/64” choke on Aruchara-1
  • Q1-21: Re-entry of Istanbul-1 well
  • Q2-21: Complete pipeline connecting the field to national infrastructure

SINU-9 (72% WI)

  • Best Estimate Contingent Resources of 37.0 Bcf
  • Best Estimate Prospective Resources (Prospects) Unrisked of 602.2 Bcf (Risked 182.4 Bcf) and Prospective Resources (Leads) of 459.0 Bcf
  • Binding offer for $27.7 million financing to construct & complete initial four-well drilling program:
    • Q3-21: Drilling and testing of Magico and Mago wells
    • Q4-21: Production tests through temporary facilities begins at Magico and Mago and design of permanent production facilities

TIBURÓN (10-40% WI)

  • Blue sky exploratory asset with excellent natural gas exploration potential; NG intends to shoot seismic and possibly farm-out

Maria Conchita

The Maria Conchita field is located in the Guajira Basin on Colombia’s Caribbean coast. The property neighbors one of the largest natural gas deposits in Colombia, the Chuchupa field, with more than 900 MMboe in reserves and accounting for 40% of Colombia’s daily natural gas output . The Ballena–Barrancabermeja pipeline is located just 14km from the Marica Conchita property and is one of several TGI networks servicing the country with Natural Gas.  NG Energy has secured financing and necessary permitting to build a connection from the Maria Conchita field to the TGI pipeline and commence production in 2021.

Prospective Resources

  • Best Estimate Gross Prospective Resources (prospects) Unrisked 155.9 Bcf (Risked 31.4 Bcf)
  • The Maria Conchita Block has 2P Reserves of 27.7 Bcf

Drilling & Re-Entry Plan

1. Aruchara-1

  • Successful re-entry in July 2020
  • 7-11 MMcf/d through separate DST tests in 3 different zones with 48/64” choke
  • In the process of building production facilities to start production after getting all permits

2. Istanbul-1

  • Scheduled for Q1-21
  • Based on the study and evaluation of the formation around the Istanbul-1 well the Company has determined to re-enter it as the second well to be rehabilitated at Maria Conchita Block

3. Tinka-1

  • Well re-entry
  • Timing TBD
  • Originally drilled by Ecopetrol in 1988
  • Offering great potential for re-entry

4. LOC-1

• New drill
• Timing TBD

5. LOC-2&3

• New drill
• Timing TBD

6. Tinka-2&3

• New drill
• Timing TBD

A recent study has helped identify new zones of possible accumulations in the limestone of the Tinka area and the sandstones of the Istanbul-1, Aruchara-1 and Tinka 1 area. This study has identified five new possible locations to be drilled for the field development and the benefits to re-enter Istanbul-1 and Tinka 1.

Connecting to National Infrastructure

  • Environmental permitting has been granted by the Colombian government for a 14km pipeline connection to national infrastructure with capacity of 20mmcf/d
  • Entered into Memorandum of Understanding (the “MOU“) with GTX International Corp. (“GTX“) pursuant to which GTX has agreed to build and operate the compression facilities and pipeline (the “Pipeline Facilities“) that will extend from the Company’s Maria Conchita field in Colombia to existing national infrastructure.
  • GTX has completed a brokered offering of US$10 million of senior secured convertible debentures, the gross proceeds from the offering of the Debentures will be used to construct the Pipeline Facilities.
  • Transportadora de Gas Internacional (TGI) is ready to build approved connection point
  • MOU provides that the NGE and GTX will enter into a take-or-pay agreement pursuant to which NGE will agree to transport, or pay for, 16 mmcf/d through the Pipeline Facilities for a period of six years at a tariff of US$0.90 per thousand cubic feet (kcf) of gas.
  • NG has letters of intent for take-or-pay contracts with two of the largest utilities in Colombia, EPM and Vanti Gas, for up to 20 mmcf/d at a price of US$5.08/mcf.
  •  NG Energy expect to complete facilities and connections by Spring 2021 and start selling gas into the Colombian Market

Project Layout

Sinu-9

The Sinu-9 Block covers an area of 311,353 acres and is located in the north part of Colombia sharing area in Lower Magdalena and San Jacinto basins, two of the basins with the largest gas and light oil potential in the country. The region has excellent infrastructure with open access to national oil and gas pipelines, 50km port access, and coverage of a reliable electricity grid. NG Energy has secured financing and identified four drilling locations for a 2021 Spring/Summer exploration program.

Flagship Upside Property

  • Canacol’s block to the East has booked natural gas reserves of 559 Bcf and production of 200 MMcf/d
  • Hocol drilled the Arrecife well on its property to the south-west of NG Energy. Test results showed gas production of 3-10 MMcf/d with no production of water
  • The Area has excellent infrastructure with open access to national oil and gas pipelines, and coverage of a reliable electricity grid
  • Best Estimate Contingent Resources of 37.0 Bcf

Exploration Potential

  • Best Estimate Prospective Resources (Prospects) Unrisked of 602.2 Bcf (Risked 182.4 Bcf) and Prospective Resources (Leads) of 459.0 Bcf

Phase 1 Exploration

NG Energy has secured a binding commercial offer from CPVEN for drilling and gas well services related to four gas wells for an aggregate cost of US$27.2 million (US$6.8 million per well). Wells are drilled to 4,500 to 6,000 feet over 25 to 30 days.

10 potential areas identified with excellent gas exploration potential:

Hechizo
Embrujo
Magico / Mago / Hechicero
Conjuro
Milagroso
Sortilegio
Ensalmo
Cabala

Development Area

Tiburón

The Tiburón block is in the Upper Guajira on Colombia’s Caribbean coast and belongs to the same basin as the Chuchupa block to its south, one of the most prolific gas blocks in Colombia. Tiburón holds various similarities to the massive offshore Perla and Orca discoveries in Venezuela and Colombia. The team intends to shoot a seismic survey and then evaluate next steps. Due to the high scale nature of the territory, management will most likely consider a farm-in partner to help develop the block

Blue Sky Exploratory Asset

  • The Tiburón block shares the same territory as Chuchupa (6 Tcf), Perla (16 Tcf) and Orca (6 Tcf) fields which are located offshore
  • The Tiburón field is located onshore and is considered a low risk area for operations
  • The field contains highly prospective structures similar to that of the Perla and Orca-1 discovery
  • NG intends to shoot a seismic survey and look for a farm-in partner

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P: +1-604-609-6132

NG Energy International Corp
3123 – 595 Burrard Street
Vancouver, BC V7X 1J1