NG Energy increases year-end reserves with 57% rise in 1P gas volumes

BOGOTA, April 24, 2025 – NG Energy has seen major increases in year-end reserves and resources for its star Colombia assets, driven by higher volumes and stronger price outlooks, the company said Thursday.

The company reported a 57% increase in 1P reserves at its Maria Conchita and Sinu-9 assets to a gross 81 bcf, with a before-tax NPV10 of USD 123.5 million. Its 2P reserves rose by 21% to 196 bcf with a value of USD 328.4 million, while 3P reserves climbed 20% to 364.7 bcf for a valuation of USD 555.4 million. Additionally, unrisked best estimate contingent resources stood at 173.6 bcf, valued at USD 231.4 million, and unrisked best estimate prospective resources reached 332.5 bcf, valued at USD 562.0 million.

For the Sinu-9 block, NG Energy’s 72% working interest yielded 1P reserves of 32 bcf, 2P reserves of 130.1 bcf and 3P reserves of 286.8 bcf. In contrast, after accounting for the pending 40% interest sale to Etablissements Maurel & Prom, the 32% WI results in 1P reserves of 14.2 bcf, 2P of 57.8 bcf and 3P of 127.5 bcf.

The Maria Conchita block, where NG Energy holds an 80% interest, accounted for 1P reserves of 49 bcf of gas and 76 Mbbl of condensate. Its 2P reserves totalled 65.9 bcf and 98 Mbbl, and 3P reserves reached 78 bcf and 115 Mbbl.

“We are delighted to report significant reserve volumes growth at year-end 2024, highlighted by a 98% increase in 1P reserves at Maria Conchita, as the company transitions into the production growth phase,” CEO and chairman Brian Paes-Braga said. “While 2024 was a year focused on infrastructure, including the construction and commissioning at Sinu-9 of the 28-kilometre pipeline connecting to the Promigas pipeline network, the Central Processing Facility, and the INFRAES plant, there was still a meaningful increase in reserve volumes from production data from the Brujo-1X and Magico-1X wells in addition to increased reserve volumes due to changes in Sproule ERCE’s views of the long-term high natural gas price environment in Colombia.”

Sproule ERCE estimates Colombia’s natural gas prices will remain at around USD 8/MMBtu through the decade due to structural supply shortages.

“There will be increased drilling activity at both Sinu-9 and Maria Conchita in 2025 as the company looks forward to releasing its updated capital budget alongside the closing of the M&P transaction,” Paes-Braga added.

NG Energy is a Canadian exploration and production company focused on developing natural gas assets in Colombia. It holds interests in three blocks: Maria Conchita, its first producing asset; Sinu-9, its flagship development with significant reserves and infrastructure; and Tiburón, an exploration block in La Guajira. The company aims to become Colombia’s largest gas producer, targeting daily production of 5.66 million cubic metres by 2026-2027 and building a reserve base exceeding 28.3 bcm.

For more insights into NG Energy’s strategy and operations, read our latest interview with CFO Jorge Fonseca: Reversing Colombia’s gas supply shortage.

Photo courtesy of NG Energy

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