NG Energy (TSXV: GASX) continues to develop its natural gas project in Colombia. The company this morning announced that it intends to re-enter the Istanbul-1 well, located within the Maria Conchita Block, this month.
The decision to re-enter the well is reportedly based on petrophysics, geophysical, and geological studies conducted by internal consultants at the end of 2020 and the first part of 2021. The studies have identified new zones of potential accumulations of gas within the limestone structure of the Tinka area, as well as the sandstones of multiple areas.
Furthermore, assuming the successful re-entry of the Istanbul-1 well, the company has identified three new potential locations to be drilled for further field development. This development is to take place in the areas of the Istanbul-1 and Aruchara-1 wells.
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The company has identified two zones to be retested upon re-entry of the well, which includes the 8,427′ to 8,435′ interval, as well as the 8,045′ to 8,053′ interval. The company will also test the new interval of 8,396′ to 8,415′ under the new program, which has the potential to become the next target in the block, which is part of the Jimol formation has not been previously tested.
The company has signed an agreement with that of CPVEN for the workover of the well as of this morning. The work on the well is expected to begin in the second half of this month, with the arrangement included project management, the selection of service providers, contract administration, development coordination, quality control and processes assurance among others.
If successful, the work over will allow for an increase in the Maria Conchita field production capacity.
NG Energy last traded at $1.70 on the TSX Venture.
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