NG ENERGY ANNOUNCES DEFINITIVE AGREEMENT FOR THE SALE OF A 40% WORKING INTEREST IN SINU-9 FOR US$150 MILLION

In This Article:

  • NGE has entered into a definitive agreement to sell a 40% operating working interest, retaining a 32% working interest, in Sinu-9 to Maurel & Prom for total cash consideration of US$150,000,000

CALGARY, AB, Feb. 10, 2025 /CNW/ - NG Energy International Corp. ("NGE" or the "Company") (TSXV: GASX) (OTCQX: GASXF) is pleased to announce that further to its news release dated January 20, 2025, it has entered into a definitive asset purchase agreement (the "APA") with Etablissements Maurel & Prom S.A. ("Maurel & Prom" or "M&P") for the sale of a 40% operating working interest in the Sinu-9 Block ("Sinu-9") for total cash consideration of US$150 million (the "Transaction"). The transfer of the 40% operating working interest in Sinu-9 to M&P is effective as of February 1, 2025.

NG Energy International Corp. Logo (CNW Group/NG Energy International Corp.)
NG Energy International Corp. Logo (CNW Group/NG Energy International Corp.)

Sinu-9

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 Licences to drill 22 wells from 11 locations. As of December 31, 2023, Sinu-9 has1,2:

  • Company gross 1P reserves of 26.7 Bcf (37.0 Bcf project gross) of natural gas;

  • Company gross 2P reserves of 114.36 Bcf (158.8 Bcf project gross) of natural gas;

  • Company gross 3P reserves of 245.3 Bcf (340.8 Bcf project gross) of natural gas;

  • Company gross unrisked best estimate contingent resources (development pending) of 130.2 Bcf; and

  • Company gross unrisked best estimate prospective resources of 131.0 Bcf.

Prior to the Transaction, the Company held a 72% operating working interest in Sinu-9. Following the Transaction and the sale of the 40% effective operating working interest in Sinu-9 to M&P, the Company holds a 32% effective operating working interest in Sinu-9.

Brian Paes-Braga, Chairman and Chief Executive Officer, commented, "We are very pleased to have had our team work quickly and effectively with the Maurel & Prom teams to finalize negotiations and get all the required definitive documents completed over the past two weeks in order to consummate this important partnership in a timely manner. Both NGE's and Maurel & Prom's technical and operational teams have already been working closely together and will continue to from this day forward, which was a critical part of this partnership. Working closely with the Maurel & Prom team recently has made it ever more clear to me that this partnership will urgently, and sustainably, bear fruit for all stakeholders as we unlock this giant oil and gas concession for all Colombians. We look forward to informing shareholders of our updated 2025 work program shortly."