Business
NG ENERGY PROVIDES UPDATE ON THE MARIA CONCHITA PRODUCTION AND SINU-9 MAGICO WELL
NG ENERGY PROVIDES UPDATE ON THE MARIA CONCHITA PRODUCTION AND SINU-9 MAGICO WELL ...
About this update from Ng Energy International Corp
[{"type":"text","content":"\n \n \n \n NG ENERGY PROVIDES UPDATE ON THE MARIA CONCHITA PRODUCTION AND SINU-9 MAGICO WELL\n \n \n /* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n \n \n \n \n \n \n Canada NewsWire\n \n \n \n \n \n \n VANCOUVER, BC\n \n \n ,\n \n \n May 5, 2022\n \n \n /CNW/ -\n \n NG Energy International Corp.\n \n (\"\n \n NGE\n \n \" or the \"\n \n Company\n \n \") (TSXV: GASX) (OTCQX: GASXF) is pleased to provide an update on the anticipated commencement of Maria Conchita production and the spudding of the SINU-9 Magico well.\n \n \n \n \n Key Highlights:\n \n \n \n \n \n Production of gas from the Maria Conchita block is expected to commence this month\n \n \n Prepayment agreement reached for up to four months of estimated production at Maria Conchita\n \n \n Spudding of the SINU-9 Magico-1 well expected by the week of\n \n May 15\n \n \n th\n \n , 2022\n \n \n Anticipated that there will be almost 50% insider and associate participation in up to\n \n CAD$20,000,000\n \n convertible debenture unit offering\n \n \n \n \n \n Maria Conchita\n \n \n \n \n The Company has reached an agreement with Energy Transitions S.A.S E.S.P. to acquire 80% of the total gas production volume from the Maria Conchita field. This agreement provides for an interruptible gas supply period between\n \n May 2022\n \n , when operations are expected to begin, and\n \n December 2022\n \n . The Company anticipates then entering into a firm gas trading contract with Energy Transitions in\n \n December 2022\n \n , as required by Colombian law, with an expected 5 year term.\n \n \n The agreement provides for the possibility that the parties will enter into a prepayment contract upon the beginning of production, for the equivalent amount of up to four months of estimated production from the extended well testing period. The Company, cognizant of the importance of guaranteeing the future performance of the well by not stressing the initial production, has agreed with Energy Transitions that such prepayment would be at a price of\n \n US$5\n \n .08 per MMBtu, for 4 MMSCFD for the first 15 days of gas production, thereby giv...