NG ENERGY ANNOUNCES ARUCHARA-5 WELL DRILLING RESULTS AT MARIA CONCHITA
Rhea-AI Summary
NG Energy (TSX:GASX, OTCQX:GASXF) reported successful drilling of the Aruchara-5 well at the Maria Conchita Block in Colombia.
Aruchara-5 reached 9,097 feet, encountered gas across H1–H6 zones, and is producing 11 MMcf/d gross, lifting Maria Conchita output to 18 MMcf/d gross and total Company net production to about 23.2 MMcf/d.
Positive
- Aruchara-5 initial production of 11 MMcf/d gross (8.8 MMcf/d net) from H1
- Maria Conchita field production increased to 18 MMcf/d gross (14.4 MMcf/d net)
- Total Company net production reached approximately 23.2 MMcf/d across Maria Conchita and Sinu-9
- Gas encountered across six zones (H1–H6) at Aruchara-5 with positive indications
- Maria Conchita infrastructure supports up to 30 MMcf/d gross (24 MMcf/d net) capacity
- Premium Colombian spot gas pricing around US$11.50–13.00/Mcf for incremental volumes
Negative
- None.
News Market Reaction – GASXF
In the May 28 session, GASXF gained 3.48%, reflecting a moderate positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
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- Aruchara-5 successfully drilled to a total depth of 9,097 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 the surface and through wireline logs
- Aruchara-5 has been completed and connected to the central processing facility and an evaluation of well performance is underway through the CPF with new gas volumes being sold into the Colombian marketplace
- Initial production from the H1 target has come up to 11.0 MMcf/d gross (8.8 MMcf/d net) with a THP of 1600 psi with a choke of 32/64
- Total field production at Maria Conchita has increased to 18 MMcf/d gross (14.4 MMcf/d net) following the addition of Aruchara-5, bringing combined Company net production across both Maria Conchita and Sinu-9 to approximately 23.2 MMcf/d
- The work program at Maria Conchita through year-end includes a well intervention at Aruchara-3, a workover at Aruchara-1, and planning of the Aruchara-6 development well
Aruchara-5 Well Drilling Results
The Aruchara-5 well has been successfully drilled to a total depth of 9,097 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 the surface and through wireline logs. Aruchara-5 has been completed and connected to the central processing facility at Maria Conchita (the "CPF") and an evaluation of well performance is underway through the CPF, with new gas volumes being sold into the Colombian marketplace.
Initial production from Aruchara-5 has delivered rates of 11 MMcf/d gross (8.8 MMcf/d net) at a wellhead pressure of 1,600 psi across the H1 zone. The addition of Aruchara-5 has brought total field production at Maria Conchita to 18 MMcf/d gross (14.4 MMcf/d net). Combined with average gross daily production of 22.5 MMcf/d (8.8 MMcf/d net) at Sinú-9 since Hechicero-1X was brought online, total Company net production is approximately 23.2 MMcf/d.
The Company's contracted offtake agreements at Maria Conchita cover volumes up to 15 MMcf/d gross, with all incremental volumes above this threshold being sold into the Colombian spot market at approximately
Maria Conchita 2026 Work Program
With Aruchara-5 now connected and producing, the Company is advancing a comprehensive work program at Maria Conchita through the remainder of 2026, which is designed to optimize production across the field and sustain capacity growth:
- Aruchara-3 – Well Intervention: a sand cleanup operation is planned to optimize and increase production rates from Aruchara-3, while also advancing the Company's understanding of the H4 zone.
- Aruchara-1 – Workover: a workover is planned at Aruchara-1, incorporating sand management to restore and increase production while testing new zones.
- Aruchara-6 – New Well: following the results of Aruchara-5, the Company plans to drill Aruchara-6 as the next development well at Maria Conchita, with spudding targeted in Q3 2026.
The Maria Conchita Block benefits from infrastructure supporting up to 30 MMcf/d gross (24 MMcf/d net) of processing and transportation capacity, providing the runway to monetize production growth from the ongoing work program.
Brian Paes-Braga, Executive Chairman of NGE, commented: "Aruchara-5 has confirmed productive gas across all six zones from H1 through H6 and is now connected and selling into the market – we are already seeing the commercial benefit of this program. Combined with Sinú-9 averaging 22.5 MMcf/d since Hechicero-1X was brought online, total Company net production has reached approximately 23.2 MMcf/d, with pace of growth increasing into the second half of this year as Maurel & Prom advances the six-well campaign at Sinú-9 and we execute our expanding work program at Maria Conchita. With Aruchara-6 on the horizon and a fully funded program in place through year-end, NGE has never had a more active operational program than it does today."
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
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 drilling activities at both the Sinu-9 Block and the Maria Conchita Block, future spot market prices of the Company's natural gas and the Company's 2026 work program at Maria Conchita. 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 | |||||
Mcf/d | thousand cubic feet per day | ||||
MMcf/d | million cubic feet per day | ||||
NGL | natural gas liquids | ||||
Other | |||||
psi | pounds per square inch | ||||
Q3 | third quarter | ||||
THP | tubing head pressure | ||||
Information Regarding the Company's Working Interest Disclosure
With regard to the Company's working interests held in both the Maria Conchita and Sinu-9 Blocks, which are held by MKMS Enerji Sucursal Colombia ("MKMS Colombia"), the Colombian branch of the Company's indirect wholly-owned subsidiary, Operadora NG Energy International, S.A. (formerly, MKMS Enerji Anonim Sirketi S.A.) ("Operadora"), in both the context of 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 by virtue of joint operating agreements. Once such conditions are fulfilled, the acquisition of a registered contractual interest, as party of record, in the exploration and production contract may materialize, by way of a request for approval of assignment before the ANH. For this reason, as is common practice within the oil and natural gas industry as a whole, the disclosed "working interest" may not coincide with the Company's current contractual interest in the exploration and production contract.
The assignment and allocation of "working interests" does not affect or undermine, in any way, the rights and obligations of registered parties under the relevant exploration and production contracts. Registered parties, such as Operadora, remain wholly and totally liable before the ANH, the Colombian authorities and third parties in connection with any and all obligations, risks and liabilities derived from the execution, performance or termination of the exploration and production contracts. Conversely, the rights and obligations that comprise "working interests" are only enforceable vis a vis between the executing parties under private agreements, and have no legal effects before the ANH, the Colombian authorities or third parties.
With respect to the Sinu-9 Block, the Company (through Operadora and MKMS Colombia) is a party of record and holds a
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SOURCE NG Energy International Corp.