#Colombia #Calgary #NG Energy #Hechicero-1X #Sinu-9

NG Energy Reports Year-End Reserves Growth and Drilling Start for Hechicero-1X at Sinu-9

NG Energy International Corp. (NGE) recently announced exciting developments in its exploration strategy, showcasing a remarkable increase in year-end reserves and a determination to commence drilling at the Hechicero-1X well situated in the Sinu-9 block. This announcement signifies a critical step in the company’s plans to boost natural gas production and cater to the growing energy demands in Colombia.

Year-End Reserves Highlights

In their comprehensive year-end report covering 2025, NG Energy highlighted substantial advances in their natural gas reserves:

• - 1P Reserves: Gross Proved reserves grew by an impressive 67%, reaching 64.5 Bcf with an estimated NPV10 of $189.2 million.
• - 2P Reserves: Gross Proved and Probable reserves marked a 50% increase to 132.3 Bcf, with a corresponding NPV10 valuation of $368.7 million.
• - 3P Reserves: Proved, Probable, and Possible reserves rose by 42%, totaling 225.6 Bcf with an NPV10 of $543.1 million.

Moreover, the company reported a 73% increase in its best estimate contingent resources and a 50% increase in prospective resources, thanks to favorable evaluations conducted by Sproule International Limited, an independent reserves evaluator.

NG Energy plans to drill seven new wells in 2026, anticipating further increases in both reserve and resource volumes. This proactive approach displays their commitment to expanding production capacity and fortifying their position in the competitive natural gas market in Colombia.

Hechicero-1X Well Drilling Operations

A key highlight of the company's operational advancements is the commencement of drilling at the Hechicero-1X well by Maurel & Prom, the operator for the Sinu-9 block. This well marks the initiation of a six-well drilling program set for 2026, leveraging Maurel & Prom’s vast experience in onshore natural gas development.

The Hechicero-1X well, which targets gas-bearing sands within the Ciénaga de Oro formation, is also anticipated to benefit from significant operational synergies due to its location on the same platform as the previously successful Brujo-1X well, which recorded testing at over 51 MMcf/d.

Infrastructure and Transportation Capacity

NG Energy’s ongoing projects assess the existing infrastructure within the Sinu-9 block, currently capable of delivering 30 MMcf/d to market, with plans to enhance this capacity to 40 MMcf/d by the second quarter of 2026. This upgrade will efficiently enable rapid monetization of newly discovered reserves while contributing to Colombia’s escalating demand for clean and reliable natural gas.

Updates on Maria Conchita Operations

The company also shared insights regarding its Maria Conchita operations. Recently, significant workovers on the Aruchara-3 well proved successful, boosting production stability to 12.0 MMcf/d. Upcoming plans include a sand cleanup operation targeting wells Aruchara-3 and Aruchara-4, anticipated in March 2026 to enhance output further.

Additionally, with the authorization for drilling the Aruchara-5 development well from the Agencia Nacional de Hidrocarburos (ANH), NGE intends to initiate drilling at this site by the end of March 2026. This aligns with their objective to maximize production potential at the Maria Conchita block, which already possesses the infrastructure to support up to 30 MMcf/d following recent expansions.

Conclusion

The 2025 year-end reserves report and the strategic drilling initiatives underlined by NGE encapsulate the company's growth trajectory and focus on meeting the energy needs in Colombia. With significant reserves growth, an aggressive drilling program for new wells, and a commitment to infrastructure expansion, NG Energy signals its robust position in the natural gas sector. As noted by Brian Paes-Braga, Executive Chairman of NGE, the increases in net present value across their conventional onshore natural gas fields are crucial for enhancing their production efficiency and sustainability, thus addressing Colombia's ongoing natural gas supply challenges while paving the way for future expansion.