NG Energy (TSXV: GASX) this morning is reporting that it has seen steady production volumes from two of its wells at the Sinu-9 Block, with each well producing over 10 MMcf/d of gas.

At Magico-1X, NG Energy saw the well increase production from 7.4 MMcf/d at a 32/64″ choke to 12.2 MMcf/d at a 50.5/64″ choke over a twenty day period. The well is said to have maintained a reduced drawdown of wellhead pressure, with minimal condensate in the gas.

The results are said to have outperformed drillstem tests conducted in August 22, when production rates grew from 5.8 MMcf/d to 10.4 MMcf/d when moving from a 32/64″ choke to a 48/64″ choke.

After twenty days of production from the Magico-1X well, the well was shut in with production then moved to the Brujo-1X well, which remains producing. Ten days have elapsed since production was moved to Brujo-1X, with production growing from 7.7 MMcf/d at a 30/64″ choke to 10 MMcf/d at a 40/64″ choke. Condensate production averaged 0.15 bbl/day, with the well maintaining a reduced drawdown of wellhead pressure.

Initial production test results of the upper zone at Brujo-1X have also outperformed drillstem tests conducted in August 2022, with lower drawdowns and higher flow rates as the choke increases.

Both wells were found to be in compliance with regulations under the Unified Transportation Regulations.

NG Energy has indicated that production capacity at the gas field will be increased to over 40 MMcf/d by early in the third quarter, once equipment for processing condensates is installed at the central processing facility.

“The last month of production has confirmed that with the right surface solutions and partners, we can unlock one of the most prolific gas reservoirs in Colombia at Sinu-9,” commented Brian Paes-Braga, CEO of NG Energy.

NG Energy last traded at $0.86 on the TSX Venture.

Information for this briefing was found via the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.