The results are in for NG Energy (TSX: GASX) for their Magico-1x well. The firm this morning updated the reserves and resources report for the well following the firm confirming “significant gas” encountered at the well, and reporting that the well tested at 15 mmscf/d across three zones.
In terms of reserves, the well is believed to have proved resources of 4,030 MMcf, while total proved plus probable resources are said to be 16,938 MMcf. Total proved plus probable plus possible resources for the well are pegged at 36,213 MMcf. In terms of risked prospective resources for the well, under the subcategory of prospects, the company has a best estimate of 2,752 MMcf.
Separately, the company also had the Hechicero and Brujo regions of the Sinu-9 property analyzed for risked prospective resources, under the subcategory of prospects. The results point to a best estimate of 12,264 MMcf for Hechicero and 9,774 MMcf for Brujo, totaling 22,038 MMcf in prospects for the two regions. The low estimate meanwhile came in at 11,061 MMcf, while the high estimate came in at 32,038 MMcf.
“We are very excited about the discovery of these important gas reserves and the presence of prospective resources to be drilled in this area with great exploration potential to support the gas needs for the country,” said company CEO Serafino Iacono.
The estimate is effective as of August 31, 2022.
Separately, the company also indicated this morning that it intends to drill the Brujo 1X well this month, while Hechicero 1X is earmarked to be drill in October. In terms of estimated costs to commercial production, the company has a best case estimate of US$19.6 million. An arrangement with Plus+ Energy ESP will see the firm pay 100% of capital costs in exchange for a two year gas purchase agreement that will see gas sold for between US$5.50 and US$6.50 per mmBTU.
The reserves report indicates an estimated start date of production of January 1, 2023.
NG Energy last traded at $0.94 on the TSX Venture.
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