Turning Limited Data into Investment-Grade Reserves: Sinú-9 and Maria Conchita
Sproule ERCE independently evaluated NG Energy International Corp.’s reserves and resources at the Maria Conchita and Sinú-9 blocks in Colombia. The reserves evaluator helped underpin a major farm-down transaction, support infrastructure investment decisions, and demonstrate the growth potential of a high-impact gas portfolio in a premium-priced domestic market.
Project Highlights
- NG Energy had assembled a portfolio of high-quality gas assets in Colombia, but to unlock capital at scale, it needed rigorously defined reserves and resources that would stand up to public market, lender, and strategic-partner scrutiny.
- High-impact Colombian gas portfolio at Maria Conchita (La Guajira) and Sinú-9 (Córdoba).
- Robust reserves and resources base independently evaluated by Sproule ERCE under the COGE Handbook and NI 51-101.
- Financing from Macquarie Group of up to US$100 million with an initial advance of US$40 million, resulting in reduced company leverage, a fully funded development plan and additional available committed liquidity for future development.
- Transformational farm-down of a 40% operating working interest in Sinú-9 to Maurel & Prom (M&P) for US$150 million.
- Consolidation of minority interests at Sinú-9, leading to a post-transaction split of 39% NGE / 61% M&P, with M&P assuming operatorship.
Challenges:
Turning geological potential into bankable, transparent reserves: Limited geological and production data required interpretation and interpolation across large, uncertain areas that would withstand public-market, lender, and strategic-partner scrutiny.
Market & Regulatory Uncertainty: Absence of a local market, coupled with evolving local regulations and socio-economic factors, created commercial and compliance challenges.
Operational and Environmental Constraints: Complex deliverables, tight turnaround times, data availability issues, and local environmental challenges impacted project execution.
Market & Regulatory Uncertainty: Absence of a local market, coupled with evolving local regulations and socio-economic factors, created commercial and compliance challenges.
Operational and Environmental Constraints: Complex deliverables, tight turnaround times, data availability issues, and local environmental challenges impacted project execution.
Solutions:
Independent reserves and resources evaluation to anchor the growth story: Sproule ERCE prepared NI 51-101 compliant reserves and resources evaluations for Sinú-9 and Maria Conchita, applying the Canadian Oil and Gas Evaluation Handbook (COGE) and industry-standard probabilistic and deterministic techniques.
The report highlighted significant year-over-year reserves growth across the portfolio, which reinforced the scale and quality of the opportunity being developed.
These independently prepared numbers served as the backbone of NG Energy’s public disclosures, supporting both investor communications and negotiations with strategic partners
Structured financing and balance sheet optimization with Macquarie: Definitive credit and guarantee agreement with Macquarie Group for a financing of up to US$100 million, of which US$50 million is committed funding.
The Company intends to use the proceeds to simplify its capital structure and deleverage approximately US$26 million, which is allocated to enable conversion of ~US$52 million of secured debentures, with a further US$14 million earmarked to repay shareholder loans, fund a debt reserve account and cover transaction fees, and US$10 million reserved for future CAPEX.
Strategic farm-down and minority consolidation at Sinú-9: Armed with a clearly defined reserves and resource base, NG Energy executed a two-step restructuring at Sinú-9:
1. Definitive sale of a 40% operating working interest to Maurel & Prom for US$150 million in cash, while retaining a 32% effective working interest and exposure to future upside.
2. Acquisition of 28% minority interests in the block, split 7% to NGE / 21% to M&P, with revised payment terms aligned to regulatory milestones and transaction closing.
Upon completion of both steps and regulatory approvals, the working-interest profile transitions to 39% NGE / 61% M&P, with M&P assuming operatorship.
This structure delivered substantial upfront and staged cash proceeds while bringing in a technically strong, well-capitalized partner to operate the block.
Sustainable growth and resilience: Combining near-term production uplift with facility/pipeline expansions and exploration drilling to support long-term deliverability.
• Looking back to 2025:
o Aruchara-4 was drilled and tied into existing processing and pipeline infrastructure.
o Aruchara-3 was recompleted to resolve a downhole mechanical obstruction, restoring the well to full capacity.
o Installed dew point handling equipment in Sinú-9, increasing processing capacity to 40 MMcf/d.
o Transportation capacity in Maria Cochita increased to 30 MMscf/d by end-December 2025.
• Looking forward:
o Aruchara-5 and Hechicero-1 are planned for Q1 2026, advancing the exploration program, extending development and sustaining production levels.
o Construction of a twin pipeline is underway with infrastructure partner INFRAES S.A.S. E.S.P., targeting transportation capacity of 45 MMcf/d by end-January 2026, with a 60 MMcf/d target during 2026.
The report highlighted significant year-over-year reserves growth across the portfolio, which reinforced the scale and quality of the opportunity being developed.
These independently prepared numbers served as the backbone of NG Energy’s public disclosures, supporting both investor communications and negotiations with strategic partners
Structured financing and balance sheet optimization with Macquarie: Definitive credit and guarantee agreement with Macquarie Group for a financing of up to US$100 million, of which US$50 million is committed funding.
The Company intends to use the proceeds to simplify its capital structure and deleverage approximately US$26 million, which is allocated to enable conversion of ~US$52 million of secured debentures, with a further US$14 million earmarked to repay shareholder loans, fund a debt reserve account and cover transaction fees, and US$10 million reserved for future CAPEX.
Strategic farm-down and minority consolidation at Sinú-9: Armed with a clearly defined reserves and resource base, NG Energy executed a two-step restructuring at Sinú-9:
1. Definitive sale of a 40% operating working interest to Maurel & Prom for US$150 million in cash, while retaining a 32% effective working interest and exposure to future upside.
2. Acquisition of 28% minority interests in the block, split 7% to NGE / 21% to M&P, with revised payment terms aligned to regulatory milestones and transaction closing.
Upon completion of both steps and regulatory approvals, the working-interest profile transitions to 39% NGE / 61% M&P, with M&P assuming operatorship.
This structure delivered substantial upfront and staged cash proceeds while bringing in a technically strong, well-capitalized partner to operate the block.
Sustainable growth and resilience: Combining near-term production uplift with facility/pipeline expansions and exploration drilling to support long-term deliverability.
• Looking back to 2025:
o Aruchara-4 was drilled and tied into existing processing and pipeline infrastructure.
o Aruchara-3 was recompleted to resolve a downhole mechanical obstruction, restoring the well to full capacity.
o Installed dew point handling equipment in Sinú-9, increasing processing capacity to 40 MMcf/d.
o Transportation capacity in Maria Cochita increased to 30 MMscf/d by end-December 2025.
• Looking forward:
o Aruchara-5 and Hechicero-1 are planned for Q1 2026, advancing the exploration program, extending development and sustaining production levels.
o Construction of a twin pipeline is underway with infrastructure partner INFRAES S.A.S. E.S.P., targeting transportation capacity of 45 MMcf/d by end-January 2026, with a 60 MMcf/d target during 2026.
Values:
For NG Energy and its shareholders:
• Stronger financial profile and self-funded growth
• Fully funded development
o The Macquarie agreement, together with existing cash flow, supported a fully funded work program, enabling NG Energy to advance infrastructure at Sinú-9 and development drilling at Maria Conchita without relying on near-term equity issuance.
• De-risked, partner-backed development of a significant gas resource
o A clear, third-party-validated reserves and resources base provides credibility with regulators, investors, and lenders.
o Farm-down to M&P shares technical and execution risk while preserving meaningful upside exposure through NG Energy’s retained interest.
For Colombia and the energy transition:
• Reliable domestic gas supply: By reaching around 40 MMcf/d of gross production (approximately 4% of Colombia’s domestic gas market) and targeting materially higher levels, NG Energy contributes to national energy security and reduced reliance on imports.
• Lower-carbon transition fuel: Gas developed at Maria Conchita and Sinú-9 supports Colombia’s transition away from higher-carbon fuels, aligning with broader regional decarbonization and economic growth objectives.
• Stronger financial profile and self-funded growth
• Fully funded development
o The Macquarie agreement, together with existing cash flow, supported a fully funded work program, enabling NG Energy to advance infrastructure at Sinú-9 and development drilling at Maria Conchita without relying on near-term equity issuance.
• De-risked, partner-backed development of a significant gas resource
o A clear, third-party-validated reserves and resources base provides credibility with regulators, investors, and lenders.
o Farm-down to M&P shares technical and execution risk while preserving meaningful upside exposure through NG Energy’s retained interest.
For Colombia and the energy transition:
• Reliable domestic gas supply: By reaching around 40 MMcf/d of gross production (approximately 4% of Colombia’s domestic gas market) and targeting materially higher levels, NG Energy contributes to national energy security and reduced reliance on imports.
• Lower-carbon transition fuel: Gas developed at Maria Conchita and Sinú-9 supports Colombia’s transition away from higher-carbon fuels, aligning with broader regional decarbonization and economic growth objectives.