NG Energy initiates drilling at Aruchara-3 at Maria Conchita field, Colombia

NG Energy International Corp. has initiated drilling at the Aruchara-3 well at the producing Maria Conchita field in La Guajira, Colombia. The project’s focus is to develop the H1A and H1B accumulations and explore the potential extension of more reserves and resources within the H2B section by testing this prospect. The well will be drilled to a total depth of 8,950 feet in three phases, and if successful, will be integrated into existing production facilities by the start of Q4 2023, boosting production in the area.

Targeting the Jimol Formation for Expansion of Reserves

The well at Aruchara-3 is being drilled from the same pad as Aruchara-1, with a 22° deviation, targeting the Jimol formation. The intention behind this initiative is to further understand and develop the area’s reserves, potentially supporting an increase in production at the Maria Conchita site toward 20 MMSCFPD. This development could contribute to making NG Energy International cash flow positive.

NG Energy International initiates drilling at Aruchara-3 to develop reserves and boost production at the Maria Conchita field in Colombia. Photo courtesy of CNW Group/NG Energy International Corp.

Implications for Future Development Plans

In addition to enhancing the existing reserves, the success of Aruchara-3 could significantly impact NGE’s financial future. According to Serafino Iacono, CEO of NG Energy International, “We are very pleased to be underway at Aruchara-3 and are confident that the well will allow for better development of the 3P reserves of the field and further definition of the contingent resources identified in our reserves analysis in the H2B section of the formation.”

He further noted that the company expects the positive free cash flow from the well, combined with the successful closing of recent financing, to facilitate the execution of development plans for Maria Conchita and Sinu-9 without requiring any additional capital.

Expected Completion and Market Update

NG Energy International Corp. anticipates the completion and tying into the existing production facilities of Aruchara-3 by Q4 2023, aiming to boost the area’s production. The market is keenly waiting for updates on testing results, which will provide insights into the well’s success and its implications for future projects.