It appears that an image posted on social media has lead NG Energy International (TSXV: GASX) to confirm that it has encountered significant gas in a new well being drilled at what is to become its flagship property, the Sinu-9 cell block in Colombia.
The firm this morning indicated that the Magico-1X well, the first well drilled by the company at the property, has encountered several gas bearing zones. The first zone, within the lower first structure known as the Cienaga de Oro sandstone, encountered 50 feet of pay.
Gas bearing zones as a whole were encountered from 3,200 through to 3,350 feet on the Magico-1X well, resulting in gross pay of 150 feet. Net pay is currently said to be 100 feet.
Testing of the first zone encountered is said to have begun last week, while the second and third zones are to begin testing this week. Results are to be provided once testing has been completed. While the company indicated that “significant gas” was encountered, further details were not provided.
The confirmation of this “significant gas” follows the company at the end of June indicating it had hit 100 feet of net pay in the well. At the time, CEO Serafino Iacono commented, “We are preparing to test and complete the well and are very excited. We believe we will have good production from these tests and once complete be ready for the next exploration activities in this very prospective gas producing region.”
The Magico-1X well saw drilling begin at the end of May, and is set to be the first in a series of wells drilled on the property.
NG Energy last traded at $1.00 on the TSX Venture.
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