#Canada #Calgary #NG Energy #Sinú-9 Block #Maria Conchita

NG Energy International Corp. Announces Annual Financial Results for FY 2025

NG Energy International Corp. (NGE), a prominent name in natural gas exploration and production, has unveiled remarkable financial results for the fiscal year 2025. The company reported unprecedented sales figures of $44.6 million from natural gas and natural gas liquids (NGL), marking a significant milestone in its operational journey.

Key Highlights

In March 2025, NG Energy commenced dual-field production with the Sinú-9 Block, achieving commercial production. This pivotal moment contributed to a record average daily production rate of approximately 20,934 Mcf/d during the fourth quarter, establishing a new benchmark for the company.

The financial report showcases a consistent growth trajectory, with the Sinú-9 Block achieving an average daily production rate of 12,377.2 Mcf/d since the initiation of production. The Maria Conchita Block produced at an average of 6,783.0 Mcf/d, despite facing mechanical obstructions early in the year, which has since been resolved.

Pricing Trends and Future Projections

For FY 2025, realized natural gas prices from the Maria Conchita Block were notably high at $8.38/Mcf, mainly due to long-term contracts ensuring stable pricing. Observations from the Sinú-9 Block indicated realized prices of $6.87/Mcf, with expectations for improved pricing as production scales with the upcoming drilling program.

Moving forward to 2026, NG Energy plans to implement a seven-well drilling program, commencing activities with the Hechicero-1X well at Sinú-9, progressing as outlined with confirmations of natural gas potential. The anticipated output from this program is set to enhance production capacities significantly.

Financial and Operational Improvements

A substantial portion of the company's operational cost challenges has been addressed, as evidenced by the decline in per-unit operating costs from $1.49/Mcf in Q3 2025 to $1.15/Mcf in Q4 2025. Moreover, cash flow from operating activities reached $3.5 million, bolstered by a robust $7.9 million in operating cash flow during the third quarter, its strongest quarter ever reported.

In the wake of strategic movements, NG Energy recently closed a major transaction with Etablissements Maurel Prom S.A. concerning the Sinú-9 Block, gaining a 40% operating working interest for $150 million in cash. This capital acquisition is paving the way for enhanced liquidity and operational strength for future endeavors.

Management Commentary

Jorge Fonseca, CEO of NG Energy, commented on the progress made during the fiscal year, stating, “2025 demanded patience and resilience while transitioning our second gas field to commercial production.” He emphasized the operational hurdles faced but expressed confidence in the resolution of such issues, strengthening the company’s operational framework for future growth.

Executive Chairman Brian Paes-Braga echoed these sentiments, praising the team’s adaptability and commitment. The strategic addition of Keith Hill as Non-Executive Chairman is expected to bolster the company’s governance and operational expertise significantly in the coming years.

Conclusion

NG Energy International Corp. is positioned for an expansive growth trajectory as it capitalizes on robust operational frameworks, strategic partnerships, and an actively growing production base. The company aims to emerge as a major contributor to Colombia's natural gas market while exploring broader opportunities in the energy sector. Stakeholders and investors are advised to monitor NG Energy's continued progress as it embarks on an exciting phase of operational enhancements and resource expansion.

For more detailed information, annual filings and reports are available on the company’s official website and SEDAR+ profile.