Saturday, August 2, 2025

Latest

Canaccord: NG Energy Has “One Of The Largest Onshore Discoveries From The Last Few Years”

On October 20, NG Energy (TSXV: GASX) announced that it had been successful drilling the Brujo-1x well at their Sinu-9 block in Colombia, under an agreement with CleanEnergy Resources.

The company said it drilled the well to a final depth of 8,019 feet in the Lower Magdalena Basin, hitting 680 feet of net gas bearing zone in the Cienaga de Oro formation and 103 feet in the Porquero formation, for a total of 783 feet of net gas pay.

As a result, the company said it would start testing seven zones within the Brujo-1x well starting on October 24th. The company’s CEO, Serafino Iacono, commented, “We are very excited by the potential magnitude of these results. This will allow the Company to redefine the expectations of the full block potential. The Company looks forward to providing further updates on well testing as this work progresses.”

NG Energy currently has two analysts covering the stock with an average 12-month price target of C$2, or an upside of 145%. The street-high price target currently sits at C$2.60 from Beacon Securities and represents an upside of 218%.

In Canaccord Genuity Capital Markets’ note on the news, they reiterate their speculative buy rating and C$1.40 12-month price target, saying that they are impressed with the results.

They believe that these results would indicate that Brujo-1X is “one of the largest onshore discoveries from the last few years.” They compare this to Aguas Vivas 1, a well drilled next door by Canacol Energy, which was Canacol’s thickest encounter in their history and only had a net pay of 412 feet, producing 35.5 MMSCFPD.

Lastly, Canaccord adds that last week’s news of a three year sale agreement is expected to add roughly US$3 million in EBITDA a quarter through 2026 as they expect gross production from the Maria Conchita of ~20MMcf/d.


FULL DISCLOSURE: Canacom Group, the parent company of The Deep Dive has been compensated to provide coverage on this company. The company has been compensated to cover this story on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. We may buy or sell securities in the company at any time. Always do additional research and consult a professional before purchasing a security.

Video Articles

AngloGold Buys Another Gold Junior! Augusta Gold Acquired For $197 Million

Another Gold Deal! Aris Mining Sells Assets To McFarlane

Royal Gold Goes Big | $3.5 Billion Sandstorm Acquisition

Recommended

Tsunami Warnings Spread As Largest Quake Since 2011 Hits Russia

Northern Superior Intersects 1.75 g/t Gold Over 65.0 Metres At Philibert

Related News

Shopify CEO Tobi Lütke Wants Financial Analysts To Be Held Accountable

Tobias Lütke, founder and CEO of Shopify, Inc. (TSX: SHOP), took to Twitter to ponder...

Tuesday, May 10, 2022, 04:28:00 PM

Medipharm Labs: Canaccord Drops Target To Just $0.10

On May 16, Medipharm Labs (TSX: LABS) reported its first quarter financial results. The company...

Tuesday, May 24, 2022, 11:37:00 AM

Village Farms: Consensus Estimates For Q4 2020

Village Farms (TSX: VFF) (NASDAQ: VFF) will be reporting their fourth quarter and year end...

Monday, March 15, 2021, 11:43:00 AM

Jushi Sees Canaccord Reiterate US$10 Price Target After Management Change-up

On June 30th, Jushi Holdings Inc. (CSE: JUSH) announced management and board of director changes....

Sunday, July 4, 2021, 01:09:00 PM

BMO: Signs Of Optimism Seen Among Precious Metals Investors

Over the last week, BMO has put out a set of notes updating their thoughts...

Tuesday, November 22, 2022, 07:27:00 AM