NG Energy (TSXV: GASX) this morning has seen the National Authority of Environmental Licenses approve the further development of the firms SINU-9 project. The changes are in connection with the previously approved environmental license for the project.
Under the revised license, the firm will now be able to drill up to 22 wells on the property as well as conduct the related work programs to support such wells, including surface instructure such as roads and drill pads. The expanded license follows a petition made by the company.
Drilling of Sinu-9 is now slated to begin in the northern area of the gas field, rather than at Magico-1x like previously planned. The firm has reportedly elected to modify its drill plan due to the North Area being the most prospective area of the field, with ground infrastructure already in place. The result is less time is required for civil work before drilling can begin.
The first two wells under the fully-funded drill program are to be Hechizo Norte-1 and Hechizo Este-1, for which design planning on civil work has now begun. Drill permits are currently being obtained for the wells, with drilling to begin in the first months of 2022.
The North Area of the Sinu-9 property currently has 51.4 BCF of unrisked contingent resources and 269 BCF of unrisked prospective resources.
NG Energy last traded at $1.71 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.
