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 from port access, and coverage of a reliable electricity grid. NG Energy has secured financing and identified four drilling locations for a Fall 2021 / Spring 2022 exploration program.

• Excellent exploration potential for natural gas with Best Estimate Contingent Resources of 37.0 Bcf and Best Estimate  Prospective Resources (Prospects)  Unrisked of 602.2 Bcf (Risked 182.4 Bcf)  and Prospective Resources (Leads) of 459.0 Bcf gross(1) 
• Canacol’s block to the west has booked natural gas 2P reserves of 637 Bcf and production of 172 MMcf/d 2020(2)
• Canacol recently drilled Aguas Vivas 1 to the east of Sinu-9 and hit 402 ft of pay zone and tested 35.5 MMcf/d(3)
• The area has excellent infrastructure with open access to national oil and gas pipelines and coverage of a reliable  electricity grid
• Binding offer for $27.7 million financing package with CPVEN to construct and complete 4 wells
• NG has identified four near-term drilling locations

• 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
• Reserves and Resources report by Petrotech Engineering Ltd., an independent qualified reserves evaluator with an effective date of December 31, 2020 (the ” Report”)

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

Wells are drilled to 4,500 – 6,000 feet over 25 – 30 days for a total cost of US$4-6 million per well