Monday, September 15, 2025

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

New Found Gold: The Strategic Maritime Resources Purchase

Amex Exploration: Revised Perron PEA Has INSANE Economics

Aris Mining: The Multi Billion Dollar Soto Norte PFS

Recommended

Northern Superior Expands Philibert With 350 Metre Step Out Testing 1.10 g/t Gold Over 25.5 Metres

Goliath Resources Hits 18.58 g/t Gold Over 5.00 Metres At Surebet

Related News

BMO: IAMGOLD’s Review Of Cote Operations Expected To Be Negative

On April 18, BMO Capital Markets lowered their 12-month price target and downgraded IAMGOLD Corporation...

Tuesday, April 19, 2022, 05:16:00 PM

Raymond James Upgrades Village Farms To Strong Buy After Pure Sunfarms Acquisition

Raymond James upgraded Village Farms (TSX: VFF) (NASDAQ: VFF) to a strong buy, up from...

Saturday, November 7, 2020, 01:51:00 PM

US Cannabis: Earnings Preview For The Oncoming Fourth Quarter Results

March is turning out to be a busy month in public cannabis, with many of...

Monday, March 8, 2021, 04:10:00 PM

BMO Upgrades Cineplex Price Target To $7.00, Rating To Market Perform

On Friday, Cineplex Inc (TSX: CGX) reported their third quarter results. Cineplex’s revenue was $61...

Monday, November 16, 2020, 03:36:00 PM

Else Nutrition: Canaccord Cuts Price Target After Another Quarter Of Estimate Misses

On November 29th Else Nutrition (TSXV: BABY) announced its third quarter financial results. The company...

Monday, December 6, 2021, 10:20:00 AM