Etablissements Maurel & Prom (M&P) has signed a definitive agreement with NG Energy International to acquire a 40% operating working interest in the Sinu-9 gas licence in Colombia.
This strategic move is set to enhance Maurel & Prom’s presence in the region and contribute to its portfolio of assets.
The transaction, valued at $150m, will be funded through Maurel & Prom’s existing cash reserves and available credit facilities, which stood at $260m as of 31 December 2024.
A $20m deposit has been made, with the balance due upon completion, subject to customary adjustments.
The closing of the deal is contingent on the receipt of regulatory approvals including a sanction from the Colombian National Hydrocarbons Agency (ANH), and other standard closing conditions.
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.”
The Sinu-9 gas block, located in the Lower Magdalena Valley, spans approximately 1,260km² and is positioned 75km from the Caribbean coast of Colombia.
Sinu-9 is strategically located in the Sinu San Jacinto basin, next to producing gas blocks operated by Canacol and Hocol.
NG Energy currently operates the block, holding a 72% working interest, with partners Desarrolladora Oleum (15%), Clean Energy Resources (7.9%) and FG Oil & Gas (5%).
The Sinu-9 block commenced gas production in November 2024, with ongoing long-term tests at the Magico-1X and Brujo-1X wells.
Existing infrastructure supports gross production up to 40 million cubic feet per day (mcf/d), with Maurel & Prom’s acquired interest equating to 16mcf/d.
Further development is expected to significantly boost production levels.
The block benefits from established infrastructure, including access to the Promigas pipeline, Colombia’s northern natural gas trunk line, at the Jobo connection point.
Sinu-9 also holds an environmental licence from Colombia’s National Authority of Environmental Licences to drill 22 wells across 11 locations.
As of 31 December 2023, the block’s gross proven plus probable (2P) reserves were 158.8 billion cubic feet (bcf), with proven plus probable plus possible (3P) reserves at 340.8bcf.
Over the next 18 months, multiple prospects are set to be drilled, which is expected to substantially increase the resource base.
