NG Energy sells 40% working interest in Sinu-9
NGE entered into a letter of intent with Maurel & Promt to sell a 40% operating working interest in the Sinu-9 Block for total cash consideration of $150 million, with an effective date of 1 February 2025.
Sinu-9 covers an area of approximately 311,353 acres in the Department of Cordoba, Colombia, and is fully permitted with environmental approval granted by the National Authority of Environmental Licenses to drill 22 wells from 11 locations.
Maurel & Prom will assume its proportional share of NGE’s carry commitments related to Sinu-9 on closing of the transaction. M&P will have a 12-month option from closing to increase its working interest by an additional 5% for a cash payment of $18.75 million.
NGE has connected Brujo-1X and Magico-1X to Central Processing Facility 1 (CPF-1) at Sinu-9 and is encouraged by the production results from both wells, affirming better than expected productivity and strong reservoir performance. During this initial production testing phase, it was determined that CPF-1 would require additional equipment to handle small amounts of condensates in order to ramp up production and realize the full potential of both Brujo-1X and Magico-1X.
The company and its infrastructure partner have acquired and assembled ~70% of the necessary equipment at site and anticipate completing the installation, commissioning and ramp-up of production starting in early February. Ramp-up is expected to reach 10 million cu ft/d during the month of February, with full production expected early Q2 as additional equipment arrives to site and wells are re-opened.
