Ng Energy Announces Aruchara-6 Well Results at Maria Conchita and Spudding of Encantado-1x at Sinú-9

NG Energy boosts Colombian gas output and captures premium spot prices with Aruchara-6 tie-in.

What the company is saying

NG Energy International Corp. reports the successful drilling, completion, and tie-in of the Aruchara-6 well at Maria Conchita in Colombia, emphasizing immediate operational progress. The company highlights initial flow rates of up to 8.7 MMcf/d gross (6.96 MMcf/d net) and projects total field production at Maria Conchita to rise to 23.0 MMcf/d gross (18.4 MMcf/d net), nearing the facility's 30.0 MMcf/d capacity. Management stresses that incremental gas volumes above the 15.0 MMcf/d gross contracted offtake are fetching strong spot prices, averaging US$14.00–16.00/Mcf and occasionally exceeding US$20.00/Mcf. The announcement also details ongoing infrastructure upgrades at the CPF and the completion of the Sinú-9 pipeline loop, which raises gross transportation capacity to 40–45 MMcf/d (15.6–17.6 MMcf/d net). Drilling of the Encantado-1X well at Sinú-9 began on October 6, 2026, with at least one more well planned for 2026. The tone is confident, focusing on operational execution, capacity expansion, and premium market pricing.

What the data suggests

The Aruchara-6 well has achieved initial flow test rates of 8.7 MMcf/d gross and 6.96 MMcf/d net, with a 30/64 choke and 780 psi tubing head pressure. With Aruchara-6 online, Maria Conchita's field production is expected to reach 23.0 MMcf/d gross (18.4 MMcf/d net), which would utilize over 75% of the 30.0 MMcf/d installed processing capacity. The company has a contracted offtake of 15.0 MMcf/d gross, and incremental volumes are being sold into the Colombian spot market at robust prices of US$14.00–16.00/Mcf, with some sales above US$20.00/Mcf. Combined net production across Maria Conchita and Sinú-9 is projected to increase to 29.1 MMcf/d. The Sinú-9 pipeline loop is now commissioned, expanding gross transportation capacity to 40–45 MMcf/d (15.6–17.6 MMcf/d net). Facility upgrades at the CPF, including a new compressor and improved cooling and dehydration, are underway to support higher throughput and reliability. The Encantado-1X well at Sinú-9 was spudded on October 6, 2026, and drilling is ongoing, with at least one more well planned this year. The data reflects a clear ramp-up in production and infrastructure, but actual post-tie-in field production and realized financial outcomes are not yet reported.

Analysis

The announcement provides a mix of realised operational milestones (successful drilling, completion, and tie-in of Aruchara-6; initial flow test rates; commissioning of the Sinú-9 pipeline loop) and forward-looking projections (expected total field production, combined company net production, and future drilling plans). The tone is upbeat, emphasizing production growth and strong spot market pricing, but actual post-tie-in production rates and combined output are only stated as expectations, not as realised facts. The company is undertaking additional capital-intensive upgrades at the CPF, but the immediate earnings impact is not quantified, and no profitability or cash flow metrics are disclosed. While the operational data is specific and credible, the narrative inflates the signal by projecting near-capacity production and future drilling without providing realised consolidated production or financial outcomes. The gap between narrative and evidence is moderate: operational progress is real, but the full benefits and financial impact remain to be demonstrated.

Risk flags

• ●Production expectations at Maria Conchita are based on initial flow tests and projections, not sustained field data; actual performance may differ due to reservoir variability or operational issues.
• ●The company's ability to consistently realize premium spot prices (US$14.00–16.00/Mcf, with some above US$20.00/Mcf) depends on ongoing market conditions in Colombia, which can fluctuate and impact revenue.
• ●Facility upgrades at the CPF are still underway; delays or technical challenges could limit throughput or reliability, especially as production approaches installed capacity.
• ●Future production increases rely on timely and successful drilling at Sinú-9, where the Encantado-1X well is in progress and at least one more well is planned for 2026, introducing execution and subsurface risk.

Bottom line

NG Energy International has delivered a tangible operational milestone by bringing Aruchara-6 online at Maria Conchita, with initial flow rates and infrastructure upgrades supporting a near-term boost in gas output. The company is capturing strong spot market prices for incremental volumes, which should enhance near-term revenue, but actual realized production and consolidated financial results are not yet disclosed. The Sinú-9 pipeline loop is now operational, and ongoing drilling at Sinú-9 could further lift production if successful. Execution risks remain around sustaining projected output, completing CPF upgrades, and maintaining premium pricing in the Colombian market. Investors should focus on upcoming disclosures of realized field production, sustained spot price achievement, and the impact of new wells on total output. The key takeaway is that NG Energy is rapidly scaling Colombian gas production and infrastructure, but the full financial impact will depend on operational follow-through and market dynamics in the coming quarters.

Announcement summary

(TSX:GASX, OTCQX:GASXF) NG Energy International Corp. announced the successful drilling, completion, and tie-in of the Aruchara-6 well at the Maria Conchita Block in Colombia. The Aruchara-6 well has produced at rates of up to 8.7 MMcf/d gross (6.96 MMcf/d net) during initial flow tests through the CPF, using a choke of 30/64 and an average tubing head pressure of 780 psi. With the addition of Aruchara-6, total field production at Maria Conchita is expected to increase to 23.0 MMcf/d gross (18.4 MMcf/d net), compared to the installed processing capacity of 30.0 MMcf/d. Incremental volumes above the company's 15.0 MMcf/d gross contracted offtake at Maria Conchita are being sold into the Colombian spot market at average prices of approximately US$14.00–16.00/Mcf, with some volumes realizing in excess of US$20.00/Mcf. Combined company net production across Maria Conchita and Sinú-9 is expected to increase to 29.1 MMcf/d. Additional upgrades are underway at the CPF, including installation of an additional compressor and improvements to heat exchangers, cooling, and dehydration facilities, to increase plant reliability as the facility operates at or near capacity. At Sinú-9, the Encantado-1X well was spudded on October 6, 2026, and drilling is currently underway. Commissioning of the Sinú-9 pipeline loop is now complete, increasing gross transportation capacity to 40–45 MMcf/d (15.6–17.6 MMcf/d net). Following Encantado-1X, the Sinú-9 Consortium expects at least one additional well to be drilled at Sinú-9 in 2026. The company's contractual interest in both the Maria Conchita Block and the Sinú-9 Block is held through its indirect wholly-owned subsidiary, Operadora NG Energy International, S.A., which operates in Colombia through its registered branch.

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