NG Energy Begins Production At Maria Conchita Gas Field

It may have taken longer than initially forecasted, but NG Energy (TSXV: GASX) has officially transitioned from a gas explorer to a gas producer as of this morning. The firm has seen its Maria Conchita gas field connected to pipeline infrastructure and has begun flowing gas.

The company has connected to the Colombian National Gas Transportation System through Transportadora de Gas Internacional in northern Colombia. The pipeline is connected to the firms Instanbul Platform, which is presently connected to both the Aruchara-1 and Istanbul-1 wells, found within the Maria Conchita field.

The plant has reportedly begun the stabilization process as well as the injection of gas from Aruchara-1.

“”We are pleased to finally, after many delays caused by negotiations with communities and interruptions generated from the COVID 19 pandemic, to have finally hooked up. We are ready to deliver gas to our customers and generate steady cash flow for the Company for many years to come,” commented CEO Serafino Iancono.

Gas flowing from the field has largely been sold already by the company, with an agreement signed in May resulting in the company being paid upfront for the first 15 days of production. That pre-sale saw the company sell 3.5 million MMSCFD of gas at US$5.08 per MMBTU, which amounts to US$277,368 and represents 80% of expected gas production during the start up phase.

As part of that arrangement, 80% of gas produced at the field through to December 2022 has been sold at a price of US$5.08 per MMBTU, which is estimated to be 16 MMSCFD. Once the contract expires, NG Energy intends to enter into a firm uninterruptible gas contract at more favorable prices.

The development follows the company last week revealing that testing at its first well in the SINU-9 block producing 15 MMSCFD with 76 feet of net pay.

NG Energy last traded at $1.14 on the TSX Venture.


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

Silver’s Finally Breaking the System | Keith Neumeyer – First Majestic

The Best News for Gold Was the Drop! – Peter Grandich

McEwen Copper: The Los Azules Feasibility Study

Recommended

Steadright To Conduct Multi-Phased Exploration At Historic Goundafa Polymetallic Mine

Goliath Resources Drills 10.72 g/t Gold Over 7.83 Metres At Surebet

Related News

NG Energy Begins Commissioning Pipeline At Sinu-9, Gas Sales To Start By Next Week

NG Energy (TSXV: GASX) has achieved a major milestone with the commissioning of a pipeline...

Monday, August 26, 2024, 09:26:35 AM

Natural Gas Futures Recede From Highs Amid Seasonally Warm Temperature Forecasts

Natural gas futures in the US slumped from their soaring highs on Wednesday, after weather...

Thursday, September 30, 2021, 10:11:00 AM

Southern Energy Announces One For Eight Share Consolidation

It appears that a share consolidation is coming to Southern Energy Corp (TSXV: SOU), a...

Friday, December 10, 2021, 07:53:35 AM

Is Russia Desperate for Foreign Currencies? Putin Partially Lifts Decree Requiring Ruble-Only Payments for Natural Gas

It appears that Russia’s energy giant Gazprom might be having trouble finding buyers for its...

Monday, January 9, 2023, 06:09:00 AM

NG Energy Confirms “Significant Gas” Encountered At Sinu-9 Well

It appears that an image posted on social media has lead NG Energy International (TSXV:...

Thursday, July 21, 2022, 09:37:40 AM