Etablissements Maurel & Prom (M&P) has signed a definitive agreement with NG Energy International (NG Energy) to acquire a 40% operating working interest in the Sinu-9 gas licence in Colombia. This follows the letter of intent signed last month.
The transaction, effective from 1 February 2025, is valued at $150m and will be financed through M&P’s existing cash resources and available credit facilities, which totalled $260m as of 31 December 2024.
An initial deposit of $20m is payable by M&P, with the remaining balance due upon completion, subject to adjustments based on cash flows between the effective date and closing.
Completion of the transaction remains contingent on regulatory approvals, including clearance from Colombia’s National Hydrocarbons Agency (ANH), as well as the fulfilment of customary closing conditions.
Additionally, M&P retains a 12-month option from closing to acquire a further 5% working interest in Sinu-9 under the same terms. This optional acquisition is valued at $18.75m and carries the same effective date of 1 February 2025.
M&P CEO Olivier de Langavant said: “We are very happy to have swiftly finalised this agreement with NG Energy. Sinu-9 is a great asset with tremendous potential, which suits perfectly our growth strategy in the region.
“The partners on the block have done a fantastic job in bringing the asset to first production, and Sinu-9 is set to contribute substantially to Colombia’s energy security. Our agreement provides for the involvement of M&P in the work programme starting from now, and our teams are already joining efforts with NG Energy to progress on the development and exploration of the asset.”
Sinu-9 is located in the Lower Magdalena Valley, approximately 75km from Colombia’s Caribbean coast, within the Córdoba department. The gas block spans around 1,260 square kilometres in the Sinu San Jacinto basin and is adjacent to producing gas blocks operated by Canacol and Hocol.
NG Energy is currently the operator of Sinu-9, holding a 72% working interest in the licence. Other stakeholders include Desarrolladora Oleum (15%), Clean Energy Resources (7.8%), and FG Oil & Gas (5.2%).
Sinu-9 commenced gas production in November 2024, with ongoing long-term testing of the Magico-1X and Brujo-1X wells. The existing infrastructure supports a gross production capacity of up to 40 million cubic feet per day (mmcfd), equating to 16 mmcfd net to M&P’s acquired 40% working interest. Future development is expected to significantly boost production levels.
The site is well-connected to infrastructure, with access to the Promigas pipeline, which serves as Colombia’s northern natural gas trunk line, via the Jobo connection point. Sinu-9 also holds an environmental licence issued by Colombia’s National Authority of Environmental Licences (ANLA), permitting the drilling of 22 wells from 11 locations.
As of 31 December 2023, Sinu-9 had gross proven plus probable (2P) reserves of 158.8 billion cubic feet (bcf) and gross proven plus probable plus possible (3P) reserves of 340.8 bcf. The reserves net to M&P’s acquired 40% working interest are estimated at 63.5 bcf (2P) and 136.3 bcf (3P), according to NG Energy’s latest certified reserves report by independent evaluator Sproule. The report follows guidelines set by the Canadian Oil and Gas Evaluation Handbook.
Sinu-9 block also offers significant exploration and appraisal opportunities, with several drilling prospects planned over the next 18 months that could further expand the resource base.
