NG Energy (TSXV: GASX) this morning issued a brief update on the status of its Magico-1 well, indicating it has hit the primary objective of the drill program. The drill program represents the first such program being conducted on the Sinu-9 block, which is the firms flagship asset in Colombia.
Magico-1 has reportedly intersected the Cienaga De Oro, or CDO, sandstone reservoir at a depth of just 3,000 feet. Comparatively, the company previously indicated it intended to hit the target at a depth of 4,300 feet. Total well depth was not provided, however the company previously indicated it was to be drilled to a total depth of 8,000 feet.
Several gas bearing zones were reportedly encountered at depths between 3,200 and 3,350 feet, resulting in gross pay of 150 feet, and net pay of 100 feet. Testing will now be performed by the company to determine where and how the well should be completed.
“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,” commented CEO Serafino Iacono.
NG Energy last traded at $0.87 on the TSX Venture.
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