- Phase 1 commenced: On schedule to deliver 30 MMcf/d from
Sinu-9 in H1, 2024
- Additional 10MMcf/d to come online at Company's election,
expected in H2, 2024
- Critical infrastructure agreements finalized, unlocking one
of Colombia's most important
onshore gas fields
TORONTO, Nov. 27,
2023 /CNW/ - NG Energy International Corp.
("NGE" or the "Company") (TSXV: GASX) (OTCQX: GASXF)
is pleased to announce that, further to the Company's press release
on September 28, 2023, it has signed
definitive agreements with INFRAES S.A.S E.S.P and Surenergy S.A.S
E.S.P (the "Contractors") to complete infrastructure
construction required for commercial production from Sinu-9. Since
the previous press release, the Contractors have advanced all
permitting and social work over the right-of-way to near
completion, have procured the equipment for the gathering and
processing plant, and have received all pipe required for
installation. Construction of both the gathering and processing
plant and pipeline are underway with the Contractors, who remain on
track to deliver 30 MMcf/d of pipeline capacity in the first half
of 2024.
Gathering & Processing Plant
Agreement
The Company has contracted Surenergy to provide processing,
treatment and compression of natural gas produced from the Sinu-9
block for the gas pipeline that will connect the Sinu-9 block with
the Jobo delivery point for the Promigas S.A E.S.P National Gas
Transportation System. Under the terms of the agreement, Surenergy
will install three compression packages of 10 MMcf/d and a
dehydration plant of 40 MMcf/d, at onset, with an additional 10
MMcf/d of compression available at the Company's election.
Surenergy is responsible for all capital expenditures and will
retain ownership over the assets, and the Company will pay a
volume-based fee for utilization of such assets over the 10-year
term of the agreement.
Pipeline Agreement
The Company has contracted INFRAES to construct a 32 kilometre,
5.5" pipeline, connecting the Sinu-9 field to the Jobo section of
the Promigas S.A E.S.P Transportation System, which is part of the
National Transportation System transporting gas to the Northern
region of Colombia. The Company
will pay a fixed transportation fee for natural gas volumes
transported over the 10-year term of the contract. INFRAES is
responsible for all capital expenditures and maintenance and will
retain ownership of the pipeline for the duration of the contract.
In addition to the transportation agreement, the Company entered
into an interruptible supply contract with S.A.S E.S.P – GEAM for
the sale of up to 10,000 MMBtu/d (approximately 10 MMcf/d) until
November 30, 2024. The Company
intends to execute firm contracts with exceptions following such
date once production is flowing and stabilized from the Sinu-9
block.
Updated Resource
Assessment
With final infrastructure agreements in place, the Company has
engaged independent qualified reserves and resources evaluator
Sproule International Limited, and anticipates that the updated
resource assessment and reclassification of contingent resources to
reserves will be completed in Q4, 2023.
Serafino Iacono, CEO of NGE
commented, "with the halting of new exploration contracts and
Colombia currently heading towards
a shortage of gas supply, which will be worsened by the El Niño
weather phenomenon, and even accounting for import capacity
according to Wood Mackenzie data, it is pivotal that current
contracts be developed and brought online in a timely manner. We
are very pleased to have finalized infrastructure agreements with
our partners INFRAES and Surenergy and will look to expand capacity
beyond the initial 40 MMcf/d as we develop this large onshore
conventional gas field."
About INFRAES S.A.S
E.S.P
Infraestructura Estratégica S.A.S E.S.P (INFRAES) is a
partnership for natural gas infrastructure development between
Kronos Energy S.A E.S.P and Convías Terrapin S.A.S. Kronos Energy
S.A E.S.P is a public service company dedicated to the execution of
infrastructure projects for the transport and commercialization of
hydrocarbons and natural gas. Kronos was established in 2012 and
has a head office located in Bogota,
Colombia. Convias Terrapin S.A.S is a highly experienced
infrastructure company located in Barranquilla, Colombia that has developed major construction
projects.
About Surenergy S.A.S
E.S.P
Surenergy S.A.S E.S.P is a company that develops projects for
the entire natural gas value chain including extraction in the
field, treatment, compression, storage, transport of CNG and LNG,
decompression and generation of electricity across Colombia. Surenergy S.A.S E.S.P has an
environmentally sensitive approach and is focused on reducing gas
flaring and improving the production and profitability of the
fields in compliance with the regulations in Colombia.
About S.A.S ESP GEAM
Grupo Energético de las Americas S.A.S E.S.P (GEAM) is a public
service company certified by Energy and Gas Regulatory Commission
of Colombia and the Colombian
Ministry of Mines and Energy. Since establishment in 2016, GEAM's
core business has been natural gas trading. GEAM has also
developed an infrastructure and services portfolio focused on
the design and implementation of integral solutions that enable
commercialization of natural gas and energy supply projects. GEAM
has its head office located in Barranquilla, Colombia.
About NG Energy International
Corp.
NG Energy International Corp. is a publicly traded E&P
company on a mission to provide a clean and sustainable solution to
Colombia's energy needs. The
Company intends on executing this mission by producing and bringing
gas to the premium priced Colombian gas market from SN-9, a 311,353
acres block which is adjacent to Canacol's Nelson field, as well as
Maria Conchita, a 32,518-acre block
located in the region of La Guajira. NGE's team has extensive
technical expertise and a proven track record of building companies
and creating value in South
America. 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, the information contained
in this news release regarding any development forecast and
our statements related to anticipated business plans or
strategies, including the Company's plans to complete
infrastructure construction required for commercial production from
Sinu-9, completion of the transactions contemplated by the pipeline
agreement and the completion of any updated resource
assessment and reclassification of contingent resources to
reserves. 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
June 30, 2023, 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, volatility of pricing for oil and natural gas, changing
investor sentiment about the oil and natural gas industry,
competition in the markets where the Company operates, any delays
in production, marketing and transportation of natural gas,
drilling costs and availability of equipment, regulatory approval
risks and environmental risks. Forward-looking statements contained
herein, including but not limited to the Company's
statements related to anticipated business plans or strategies,
including the Company's plans to complete infrastructure
construction required for commercial production from Sinu-9;
completion of the transactions contemplated by the pipeline
agreement; and the completion of any updated resource
assessment and reclassification of contingent resources to
reserves. 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.
Neither the TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE NG Energy International Corp.