Maria Conchita Block - Aruchara-6 Well Results
The Aruchara-6 well has been successfully drilled to a total depth of 9,352 feet, hitting the H1 target as designed and passing through the H2, H3, H4, H5 and H6 zones, with all zones showing positive results of gas at surface and through wireline logs. The well has been completed and connected to the central processing facility ("CPF"), with well performance evaluation now underway through the CPF and new gas volumes being sold into the Colombian marketplace.
During initial flow testing through the CPF, Aruchara-6 produced at rates of up to 8.7 MMcf/d gross (6.96 MMcf/d net), on a 30/64 choke at an average tubing head pressure of 780 psi. The well is now on production, with gas volumes being sold into the Colombian marketplace.
With Aruchara-6 on production, total field production at Maria Conchita is expected to increase to 23.0 MMcf/d gross (18.4 MMcf/d net), compared to 16.0 MMcf/d gross (12.8 MMcf/d net) prior to the addition of the well. This is expected to bring the combined Company net production across Maria Conchita and Sinú-9 to approximately 29.1 MMcf/d. Net production volumes for Maria Conchita reflect the Company's 80% working interest under private agreements, rather than the contractual interest registered with Agencia Nacional de Hidrocarburos (the "ANH").
Gas volumes in excess of those sold under the Company's existing contracted offtake agreements are being sold into the Colombian marketplace at average prices of approximately US$14.00–16.00/Mcf, with some volumes exceeding US$20.00/Mcf, reflecting the premium Colombian natural gas pricing environment. The Company's contracted offtake agreements at Maria Conchita cover volumes up to 15.0 MMcf/d gross, with all incremental volumes above this threshold sold at spot prices.
Maria Conchita Block - CPF Upgrades
As total field production at Maria Conchita approaches the CPF's 30 MMcf/d processing capacity, the Company's infrastructure partner, GTX International Corp. ("GTX"), is advancing a series of upgrades designed to increase the reliability of the CPF as it operates at or near capacity. Prior to the end of October, an additional compressor will be installed to accommodate upcoming production volumes with a greater level of reliability. GTX is also in the process of implementing improvements to the heat exchangers and the cooling facility, with further upgrades to the dehydration facility expected to be completed by the end of October 2026.
Together, these investments are intended to ensure the CPF operates reliably as the facility approaches full capacity, supporting sustained production growth from the Aruchara well series while enhancing uptime and operating efficiency across the Maria Conchita Block.
Sinú-9 Block – Operational Update
At the Sinú-9 Block, Maurel & Prom Colombia Sociedad Limitada, as Operator of the consortium formed with the Company through Operadora NGE (the "Sinú-9 Consortium"), spudded the Encantado-1X well on October 6, 2026. Encantado-1X is the next well in the Sinú-9 Consortium's 2026 drilling program, and drilling is currently underway. The Sinú-9 Consortium expects that, following completion of Encantado-1X, at least one additional well will be drilled at Sinú-9 this year.
The Company views Encantado-1X as an important well for the continued delineation of the Sinú-9 Block for several reasons. The well is expected to help define the southern limits of the reservoir and provide depth calibration across the block. The area is anticipated to be of higher pressure than previously drilled locations, which management expects to have a positive impact on production rates. Encantado-1X is also expected to confirm the presence of natural gas in the Pre-CDO formation and verify the potential for liquids within the reservoir.
In support of the Sinú-9 Consortium's drilling program, commissioning of the first loop of the pipeline from the Jobo connection point, constructed by the Company's infrastructure partner INFRAES S.A.S E.S.P., is now complete. Gross transportation capacity at the Sinú-9 Block has increased from 30.0 MMcf/d to between 40.0 and 45.0 MMcf/d, representing net entitlement to the Company of between 15.6 and 17.6 MMcf/d.
Jorge Fonseca, Chief Executive Officer of NGE, commented: "Aruchara-6 has delivered positive gas results and is now tied into our main processing facility and producing, having flowed at up to 8.7 MMcf/d during well testing. The addition of the well is expected to bring total field production at Maria Conchita up to 23.0 MMcf/d. With the block now approaching the capacity of our processing facility, the upgrades GTX is completing over the coming weeks will ensure the CPF runs reliably at these higher throughput levels. At Sinú-9, Maurel & Prom Colombia Sociedad Limitada, as Operator of the Sinú-9 Consortium, spudded Encantado-1X on October 6th and drilling is now underway – a well we believe is important for defining the southern limits of the reservoir, testing a higher-pressure area of the block and confirming the presence of gas in the Pre-CDO formation. With at least one further well planned by the Sinú-9 Consortium before year-end, we are finishing 2026 with real momentum across both of our assets."
About NG Energy International Corp.
NG Energy International Corp. is a growth-orientated natural gas exploration and production company focused on delivering long-term shareholder and stakeholder value through the discovery, delineation and development of large-scale oil and gas fields in the Americas, supporting energy transition and economic growth. NGE's team has extensive technical and capital markets expertise with a proven track record of building companies and creating significant value in North and South America. In Colombia, the Company, through its indirect wholly-owned subsidiary, Operadora NGE, which operates in Colombia through its registered branch, is executing on this mission with a rapidly growing production base and an industry-leading growth trajectory, delivering natural gas into the premium-priced Colombian marketplace with a goal of being a material supplier of clean natural gas to Colombia and a broader vision of becoming a global energy platform business and providing prosperity for all stakeholders. Over the past 3 years, the Company has successfully raised and deployed over US$200 million in debt and equity, monetized 40% of one of its assets for US$150 million in cash and has partnered in the construction and commissioning of 3 gathering, processing and treatment facilities and associated pipelines with significant capital contributions from insiders who currently own approximately 32% of the Company. For more information, please visit SEDAR+ (www.sedarplus.ca) and the Company's website (www.ngenergyintl.com).
Cautionary Statement Regarding Forward-Looking Information
This news release contains "forward-looking information" and "forward-looking statements" (collectively, "forward-looking statements") within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release, including, without limitation, statements related to total field production at Maria Conchita, total net production across Maria Conchita and Sinú-9, the timeline for completion of GTX's upgrades to the CPF and the drilling of additional wells at Sinú-9. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as "expects", or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "budget", "scheduled", "forecasts", "estimates", "believes" or "intends" or variations of such words and phrases or stating that certain actions, events or results "may" or "could", "would", "might" or "will" be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements.
Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Factors that could cause actual results to differ materially from those anticipated in these forward-looking statements are described under the caption "Risk Factors" in the Company's most recent Management Discussion and Analysis and its Annual Information Form dated March 27, 2026, which are available for view on SEDAR+ at www.sedarplus.ca. These risks include but are not limited to, the risks associated with the oil and natural gas industry, such as exploration, production and general operational risks, the volatility of pricing for oil and natural gas, the inability to market natural gas production and changes in natural gas sale prices, changing investor sentiment about the oil and natural gas industry, any delays in production, marketing and transportation of natural gas, drilling costs and availability of equipment, regulatory approval risks and environmental, health and safety risks. Forward-looking statements contained herein are made as of the date of this news release, and the Company disclaims, other than as required by law, any obligation to update any forward-looking statements whether as a result of new information, results, future events, circumstances, or if management's estimates or opinions should change, or otherwise. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, the reader is cautioned not to place undue reliance on forward-looking statements.
No securities regulatory authority has either approved or disapproved the contents of this news release. The Toronto Stock Exchange accepts no responsibility for the adequacy or accuracy of this news release.
Abbreviations
The abbreviations set forth below have the following meanings:
Oil, Natural Gas Liquids and Natural Gas |
MMcf/d |
million cubic feet per day |
psi |
pounds per square inch |
Information Regarding the Company's Working Interest Disclosure
The Company's contractual interest in the exploration and production contracts for both the Sinú-9 Block and the Maria Conchita Block is held through its indirect wholly-owned subsidiary, Operadora NG Energy International, S.A., which operates in Colombia through its registered branch. As a result of the foregoing, throughout this news release, references to "the Company" are understood to refer to NG Energy International Corp. and its direct and indirect wholly-owned subsidiaries as a whole. Through its registered Colombian branch, Operadora NGE holds the Company's contractual participation in the Sinú-9 Block exploration and production contract as a member of the Sinú-9 Consortium, and holds and operates the Maria Conchita Block exploration and production contract. Therefore, NG Energy International Corp. is neither a contracting party nor the holder of the exploration and production contracts with the ANH.
In both this news release and the Company's previous news releases, the term "working interest" ultimately refers to the rights and obligations agreed to eventually materialize a contractual interest in an exploration and production contract before the ANH, subject to the fulfillment of certain conditions. These conditions involve the assumption of financial risks and are generally linked to exploration pursuant to joint operating agreements. Once such conditions are fulfilled, the acquisition of a registered contractual interest, as a party of record, in the exploration and production contract may be formalized through a request for approval of an assignment before the ANH.
The assignment and allocation of "working interests" does not affect or undermine, in any way, the rights and obligations of the registered parties under the relevant exploration and production contracts. The registered parties, such as Operadora NGE, remain wholly and totally liable before the ANH, the Colombian authorities and third parties in connection with any and all obligations, risks and liabilities arising from the execution, performance or termination of the exploration and production contracts. Conversely, the rights and obligations that comprise "working interests" are enforceable only among the parties to the relevant private agreements, and have no legal effect before the ANH, the Colombian authorities or third parties. Accordingly, references to "working interests" in this news release do not constitute official information on the ownership of the exploration and production contracts, which corresponds solely to the contractual interests registered with the ANH, as set out below.
With regard to the Sinú-9 Block, the Sinú-9 Consortium, consisting of Maurel & Prom Colombia Sociedad Limitada (Operator – 61%) and Operadora NGE (39%), is party to the Sinú-9 Block exploration and production contract awarded by the ANH. With respect to the Maria Conchita Block, Operadora NGE is the sole registered contracting party and holds a 100% contractual interest and the status of operator under the Maria Conchita Block exploration and production contract awarded by the ANH. By communication dated July 30, 2026, the ANH approved the partial assignment of 18.55% of the interests, rights and obligations under the Maria Conchita exploration and production contract to Olympo Colombia S.A.S., which is in the process of being formalized through Amendment No. 15. Upon execution of such amendment, the contractor will be the Maria Conchita Consortium, consisting of Operadora NGE (Operator – 81.45%), and Olympo Colombia S.A.S. (18.55%). The Company holds an 80% private economic interest in the Maria Conchita Block. Net production volumes for Maria Conchita included in this news release are calculated based on this economic interest derived from private agreements, and not on the contractual interest registered with the ANH. The 1.45% difference relative to the 81.45% contractual interest corresponds to a third party's economic interest held under a private agreement. Contractual ownership before the ANH corresponds exclusively to the registered contractor and, once the assignment is formalized, to the members of the Maria Conchita Consortium.
SOURCE NG Energy International Corp.
For further information: NG Energy International Corp., Brian Paes-Braga, Executive Chairman; Jorge Fonseca, CEO, [email protected]
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