NG Energy International has reached an agreement to sell a 40% operating working interest in the Sinu-9 gas block to Maurel & Prom (M&P) for a total cash consideration of $150m (C$216.13m).
NG Energy currently operates Sinu-9 and holds a 72% working interest with partners Desarrolladora Oleum (15%), Clean Energy Resources (7.8%) and FG Oil & Gas (5.2%).
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The transaction, set to take effect from 1 February 2025, is part of a letter of intent (LOI) that outlines the terms of the sale.
M&P will also have the option to purchase an additional 5% working interest in Sinu-9 from NG Energy for $18.75m within 12 months of closing, under the same terms and effective date.
M&P chief executive officer Olivier de Langavant said: “This acquisition represents a key step in M&P’s growth, bringing the group an operating stake in a prolific and highly prospective gas licence.
“The asset is at an early stage of development, which allows us to leverage our operational expertise to develop all the resources in place and bring a domestic source of gas to the Colombian market.
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By GlobalData“This marks a significant milestone in our history in Colombia, re-establishing M&P as an operator in the country with significant organic growth potential. NG Energy has done a great job at bringing this asset to first gas, and we look forward to growing the relationship as partners on Sinu-9.”
The Sinu-9 block is located in Colombia’s Lower Magdalena Valley, approximately 75km from the Caribbean coast.
It spans an area of around 1,260km² in the department of Córdoba in the Sinu San Jacinto basin, near gas blocks operated by Canacol and Hocol.
As of 31 December 2023, Sinu-9 was reported to have gross 2P and 3P reserves of 158.8 billion cubic feet (bcf) and 340.8bcf, respectively, according to a certified reserves report by Sproule International.
The block benefits from established infrastructure, including access to the Promigas pipeline and Colombia’s northern natural gas trunk line, at the Jobo connection point.
The infrastructure can support gross production up to 40 million cubic feet per day (mcf/d), equating to 16mcf/d net for the 40% interest acquired by M&P.
Sinu-9 commenced gas production in November 2024, as part of an ongoing long-term test.
Sinu-9 has also received environmental approval from Colombia’s National Authority of Environmental Licences to drill 22 wells from 11 locations, with infrastructure already in place for the initial development phase.
