NG Energy: Beacon Reiterates C$2.80 Price Target

On October 7, NG Energy’s (TSXV: GASX) announced that they secured a $7 million, non-brokered private placement. The company will sell 7 million units at C$1 per unit. Each unit consists of 1 share and 1 warrant that can be exchanged for 1 additional share at a price of C$1.20 for 24 months.

The company says the use of proceeds will help fast track the companies exploration at SINU-9 by funding upfront infrastructure buildout of roads and pads.

Off the back of the news, Beacon Securities reiterated their C$2.80 price target and buy rating, saying, “The injection of equity capital at this time allows GASX to expedite activities in Colombia and de-risks the financing question.” They say that the dilution this equity issuance did is offset by the lower risk the company now has.

Beacon says that the financing will enable the company to develop drilling pads and roads “concurrently rather than consecutively,” at a price tag of $0.75 million per pad, enabling the firm to save several weeks in construction per well at Sinu-9. With four wells planned at the Sinu-9 block currently, Beacon anticipates 15-20 mmcf/d gross from each of the four wells, with one located at Hechizo notably having the potential for even more.

Drilling at Magico-1X, the first well to be drilled at Sinu-9, is anticipated to begin in the next few weeks.

Additionally, the company said they will install a submersible pump system to deal with the downhole water at Istanbul-1, “This should allow initial production of 4 mmcf/d from this well to begin by initially trucking the natural gas to one end user at US$5/mcf net,” says Beacon.

Finally, Beacon comments that “production from the Maria Conchita Block should be pipeline connected in the next 6-8 weeks as GASX is dealing with final environmental approvals,” with Beacon expecting the Istanbul-1 and Aruchara-1 wells on the block to produce 15-20 mmcf/d on a gross basis.


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. Always do additional research and consult a professional before purchasing a security.

Video Articles

2026 Could Be Gold’s Biggest Year Yet!? | Ryan King – Equinox Gold

Gold Is Screaming Higher While Currencies Burn | Simon Ridgway – Rackla Metals

We Have the Highest-Grade Antimony Deposit in North America!? | Jim Atkinson -Antimony Resources

Recommended

Canadian Copper Secures $8 Million Lead Order From Ocean Partners As Part Of Larger Funding Round

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

Related News

WeCommerce: Canaccord Lowers Price Target Following Marketing Meetings

Over the last few weeks, Canaccord hosted a number of marketing meetings for WeCommerce (TSXV:...

Wednesday, February 2, 2022, 04:04:00 PM

Canaccord Lowers Curaleaf’s Price Target After Soft Q3 Results

On November 8th, Curaleaf Holdings (CSE: CURA) reported its third-quarter financial results. The firm reported...

Saturday, November 13, 2021, 10:15:00 AM

Bear Creek: Canaccord Raises Price Target To $6 From $3.75

Canaccord precious metals analyst Kevin MacKenzie upgraded their 12-month price target on Bear Creek Mining...

Tuesday, August 4, 2020, 05:48:30 PM

TPCO Holdings: Canaccord Initiates Coverage With US$15 Price Target

This morning, Canaccord Genuity initiated coverage on The Parent Company (NEO: GRAM.u) with a US$15...

Wednesday, February 3, 2021, 04:07:00 PM

Curaleaf: The Analyst Take On The European Expansion

On April 7th, Curaleaf Holdings (CSE: CURA) announced that they completed $312 million acquisition of...

Friday, April 9, 2021, 11:46:00 AM