NG Energy Brings Badly Needed Natural Gas Production Online In Colombia at Sinu-9 SIte
Summary
This funding will support the expansion of infrastructure at Sinu-9 and provide assurances to Colombias Agencia Nacional de Hidrocarburos as Phase II of the Sinu-9 development progresses.In March 2024, Macquarie Group had already committed US$50 million in financing, part of a larger US$100 million credit facility. This recent increase in credit is designated for advancing the Sinu-9 project, including the construction of additional pipeline capacity, expected to increase by up to 76 MMcf/d over 15 months as outlined in a Memorandum of Understanding with INFRAES.In connection with the credit facility, NG Energy will issue Macquarie 5,714,286 common share purchase warrants, allowing the purchase of one common share at C$0.98 until December 29, 2028. The companys production goals aim to meet the countrys premium-priced gas demand, currently estimated at approximately US$8/MMBtu. With a target of reaching 200 MMcf/d, NG Energy projects substantial growth over the next few years, following a year-over-year increase in reserves across all categories (3P, 2P, and 1P). To date, over US$100 million has been invested in its Sinu-9 and Maria Conchita projects, with a substantial portion contributed by insiders holding roughly 32% of the companys equity.