PARIS: Maurel & Prom S.A. (“M&P”) announced Monday that it has signed a letter of intent with NG Energy International Corp. (“NG Energy”), a company listed on the TSX Venture Exchange of Toronto, to acquire a 40% operated working interest in the Sinu-9 gas license in Colombia for $150 million, effective February 1, 2025.

Olivier de Langavant, CEO of M&P, stated, “This acquisition represents a key step in M&P’s growth, bringing the Group an operating stake in a prolific and highly prospective gas license. 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.”

The Sinu-9 gas block is located in the Lower Magdalena Valley, about 75 kilometers from Colombia’s Caribbean coast, covering approximately 1,260 square kilometers in the department of Córdoba. NG Energy currently operates the block and holds a 72% working interest, alongside other partners.

The area has established infrastructure with access to the Promigas pipeline, the northern natural gas trunk line of Colombia. Sinu-9 achieved first gas production in November 2024, with infrastructure in place for gross production of up to 40 million cubic feet per day (16 million cubic feet per day net to the acquired 40% working interest).

The block has gross 2P and 3P reserves of 158.8 billion cubic feet and 340.8 billion cubic feet, respectively, as of December 31, 2023. The acquisition positions M&P to build size and scale in Colombia, leveraging its operational capabilities.

Closing of the transaction is subject to negotiation and execution of a definitive agreement, receipt of regulatory approvals, and satisfaction of other customary closing conditions. M&P will have a 12-month option from closing to acquire an additional 5% working interest in Sinu-9 from NG Energy for $18.75 million.

Hannam & Partners is acting as exclusive financial advisor to M&P, with Herbert Smith Freehills LLP, Torys LLP, and Martínez Quintero Mendoza González Laguado & De La Rosa serving as legal advisors.

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