NG Energy International (TSXV: GASX) this morning released a corporate update on its Colombian operations. Within, the company provided the latest status of its Sinu-9 property, the Istanbul-1 re-entry, and the development of its gas treatment and transport technology facility.
At Sinu-9, the company has indicated that it is currently in the process of seeking governmental approval for exploratory drilling to be conducted. With the environmental study for the property initially submitted in December 2020 to the National Environmental Licensing Authority, the company expects to receive the authorization to proceed in July.
To date, the company has worked to construct road access and construct locations for initial drilling to take place. The first drills are expected to begin in Q3, with Magico-1X to be the first of four wells slated to be drilled at the property.
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Meanwhile at Istanbul-1, the company has temporarily completed the well that it re-entered in May. The company is currently reviewing existing tech to place the well into continuous production as soon as possible.
Finally, the company is currently in the process of having the infrastructure completed at its Maria Conchita block. The required pipeline, plant, and complementary systems are in the process of being developed. A total of 3.7 kilometres of gas pipeline have been delivered to the project thus far, with construction of the remaining pipeline to be conducted following procedures for prior consultation with communities in the region. The company indicated that it has suffered delays due to social circumstances within the country.
The construction of the plant and complementary systems meanwhile is progressing, with manufacturing and construction of plant currently underway. Studies and procedures for production to commence at the Aruchara-1 well are currently underway as well, with the company anticipating gas production to commence in the third quarter of 2021.
NG Energy last traded at $1.10 on the TSX Venture.
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