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.
Reserves and Prospective Resources
- 2P Reserves of 27.7 Bcf
- Best Estimate Gross Prospective Resources (prospects) Unrisked 155.9 Bcf (Risked 31.4 Bcf)
- Reserves and Resources report by Petrotech Engineering Ltd., an independent qualified reserves evaluator with an effective date of December 31, 2020 (the ” Report”)
Pipeline 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
NG Energy International Corp
3123 – 595 Burrard Street
Vancouver, BC V7X 1J1