NG ENERGY PROVIDES BUDGET AND PRODUCTION GUIDANCE FOR 2024
- Expected 2024 capital expenditures of
US$23 -US$27 million , which includes:- Sinu-9 Block - Phase I: Completion of infrastructure projects on schedule for H1, 2024;
- Drilling of the Hechicero-1X exploration well in the Sinu-9 Block in Q4 from the same drill pad as the Brujo-1X well (783 feet of net gas pay, which tested 51 MMcf/d); and
- Production enhancing activities and geophysics study of newly encountered fractured zones at the Maria Conchita Block as part of key re-scoping initiative following up on the 65.2 MMcf/d test at the Aruchara-3 well
- Expected average gross production in 2024 of 25 - 35 MMcf/d with the goal of exceeding 45 MMcf/d in gross production by the end of 2024
-
Projected cash flow of
US$20 -US$25 million in 2024
Key Highlights
2024 Budget |
|
Average Gross Production (MMcf/d) |
25 - 35 |
Gross Exit Production (MMcf/d) |
>45 (150% growth y/y) |
Cash Flow from Operations1 (US$ millions) |
20 - 25 |
Total Capital (US$ millions) |
23 - 27 |
Number of Exploration Wells |
1 |
1
Assumes the Company's long-term natural gas offtake agreements in-place and a spot natural gas price of |
2024 Budget –
-
Sinu-9 Block:
- completion of ongoing Phase I infrastructure projects resulting in processing and transportation capacity of 30 MMcf/d by the end of Q2 2024 and an additional 10 MMcf/d by year-end 2024;
- completion and tie-in of the Brujo-1X well in Q2 2024;
- tie-in of the Magico-1X well in Q2 2024; and
- drilling of the Hechicero-1X well in Q4 2024.
-
Maria Conchita Block : Completion of production enhancing activities, as well as a geophysics study on the H3/H4 fractured zones and an evaluation of various production growth development programs. - Social Initiatives: Continued commitment to supporting the communities in which the Company operates.
Message to Shareholders
The Company believes that the 2024 Budget will allow it to execute its strategic plan and achieve profitable production growth of over 150% (exit-to-exit), while growing the Company's Proved + Probable reserves to achieve our corporate goal of profitably acquiring a 20% market share in the Colombian natural gas market. The Company believes that through the continued (and ever growing) support of its financing, infrastructure and commercial partners and a high and low volatility natural gas pricing environment, it is well-positioned to continue to grow its market share in the Colombian natural gas market, which is in dire need of significant new investment in both natural gas production and reserves. The 2024 Budget is a foundational step for the Company in achieving sustainable growth and future yield, while driving top-tier returns for shareholders and achieving the Company's long-term strategic objectives.
About NG Energy International Corp.
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 the Company's planned capital expenditures, the 2024 Budget, the growth of the Company's production base, the drilling, completion or tie-in of any wells in the Sinu-9 Block, the completion of any exploration activities or development programs in the Maria Conchita Block, the growth of the Company's Proved + Probable reserves, the potential of the Sinu-9 Block and the Company's market share in the Colombian natural gas market. 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
Neither the
Abbreviations
The abbreviations set forth below have the following meanings:
Natural Gas |
|
MMcf/d |
million cubic feet per day |
MMBtu |
One million British thermal units |
SOURCE