FN Media Group Presents Microsmallcap.com Market Commentary
New York, NY – January 5, 2021 – After experiencing the worst drop since the Great Depression, demand for fossil fuels like coal, natural gas, and oil are roaring back to pre-pandemic levels. Despite hopes that the COVID-19 crisis would lead to a faster transition to clean energy, the fact remains that over three-quarters of global energy needs are still being met by fossil fuels. Until the world makes a full transition to clean energy, fossil fuel demand will likely remain high. Meanwhile, several factors such as global shortages, the offline Russian Nord Stream 2 pipeline, cold weather, and a power crunch in China are expected to keep prices elevated in Europe and the US, creating a perfect storm for oil and gas companies like NG Energy International Corp. (TSXV:GASX) (OTCQX:GASXF), Cardinal Energy Ltd. (TSX:CJ) (OTCPK:CRLFF), Crescent Point Energy Corp. (NYSE:CPG) (TSX:CPG), Contango Oil & Gas Co. (NYSE:MCF) and Cheniere Energy Inc. (NYSE:LNG).
On December 21, 2021, European gas prices soared 16% to $193.46 per megawatt hour, the highest since hitting a record in early October due to rising demand expectations and renewed concerns over Russia’s inactive Nord Stream 2 pipeline.
NG Energy International Corp. (TSXV:GASX) (OTCQX:GASXF) has been working diligently to advance exploration programs to help curb supply deficit of natural gas in Colombia while advancing the construction of production facilities at Maria Conchita.
On January 4, NG Energy International Corp. announced it is nearing completion of the pipeline and production facilities that will connect its most advanced block Maria Conchita to the national pipeline system. The completion of this infrastructure, along with receival of an amended environmental permit expected in January, will mark a significant milestone for the young company as it transitions from an explorer to a producer.
Simultaneously, NG Energy is getting ready to mobilize the drill rig for its fully funded, phase 1 four well drilling campaign at its flagship SINU-9. SINU-9 is a 311,353-hectare block adjacent to Canacol, Colombia’s largest independent gas producer, with 1.5 TCF in prospective resources that NG will endeavor to unlock. In September 2021, the company received approval from the National Authority of Environmental Licences (“ANLA) for the drilling of 22 wells and related work programs on the property. Phase I will be focused in the northern area of the block which is the most prospective area of the property from a resource’s standpoint.
In early October 2021, NG Energy closed a C$7,000,000 financing which will be used to fast track the company’s exploration timeline at SINU-9 by funding upfront infrastructure buildout of roads and pads, in addition to US$27.7 million in financing already committed by CPVEN for the drilling and completion of the first four wells.
CEO Serafino Iacono has been adding to his shareholdings with open market purchase over the past several months; on November 10, 2021 he purchased 100,000 shares at $1.56 and an additional 26,000 shares at $1.89 on November 17, 2021.
For more information on NG Energy International Corp. (TSXV:GASX) (OTCQX:GASXF), click here.
Gas and Energy Companies Gear Up For Industry Changes Ahead
Cardinal Energy Ltd. (TSX:CJ) (OTC:CRLFF) recently acquired Venturion Oil Limited in an arrangement agreement, in hopes of developing low decline oil production. This strategic move by Cardinal Energy will lead to operations in the Wainwright area, and the company will be able to achieve economies of scale while utilizing pre-existing infrastructure to reduce operating costs per boe. Cardinal will also be operating Venturion’s asset in central Alberta, which consists of an estimated 2,500 boe/d of production (~83% oil).
For Contango Oil & Gas Co. (NYSEAMERICAN:MCF), a new adventure lies ahead as the company announced it has entered into a definitive agreement to combine with Independence Energy in an all-stock merger and bring a premier U.S. independent oil and gas company. The objective is to bring a combined company that will be KKR’s leading platform for pursuing upstream oil and natural gas opportunities.
While other gas companies are moving ahead with their new arrangements, Crescent Point Energy Corp. (NYSE:CPG) (TSX:CPG) is looking ahead to 2022 and what is in store for the company. Crescent Point shared its preliminary 2022 budget and is expected to generate further shareholder value. Additionally, the outlook for production is between 131,000-135,000 boe/d with development capital expenditures of $825-$900 million.
Cheniere Energy Inc. (NYSEAMERICAN:LNG) is heading in a different direction and announced in the late summer of 2021 that it will be publishing the life cycle of greenhouse gas after a thorough assessment. This peer-reviewed study has been an ongoing journey since 2018 in order to understand and demonstrate future efforts to improve the environmental performance of gas emissions.
NG Energy International Corp. (TSXV:GASX) (OTCQX:GASXF) is gearing up for a busy start to the year as the company looks to reach production from Maria Conchita and commerce drilling at its flagship SINU-9.
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