Q3 2025 Highlights:
The Company achieved gross average daily production of 27.2 MMcf/d in Q3 2025, as at the date of the Interim Filings, November month to date gross daily production has increased to 33.8 MMcf/d following the successful completion of the Aruchara-4 well at Maria Conchita. The Company expects this trend to continue through the balance of the year following the recompletion of the Aruchara-3 well at Maria Conchita and the drilling of the Hechicero-1X well at Sinú-9.
The Company achieved natural gas and NGL sales of US$13.9 million in Q3 2025, representing a 53% increase over Q3 2024. Such increase was driven by continued strong performance from Sinú-9 following first production in late March 2025.
The Company generated positive cash flow from operations of US$7.9 million in Q3 2025.
Operating expenses totaled US$4.5 million in Q3 2025 and total US$12.7 million year-to-date. Per-unit operating costs at Sinú-9 improved significantly to US$1.49 per Mcf in Q3 2025 from the year-to-date average of US$2.81 per Mcf, representing a 47% decrease, which reflects the absorption of one-time condensate handling and well servicing costs incurred earlier in the ramp-up phase. This improvement underscores the scalable, low-cost nature of the Sinú-9 asset as production volumes continue to grow.
The Company realized prices of US$8.23 per Mcf from Maria Conchita during Q3 2025, which is expected to continue to climb in a favourable natural gas pricing environment with new natural gas volumes expected to be sold at prices >$11.00 per MMBtu.
The Company realized prices of US$7.20 per Mcf from Sinú-9 during Q3 2025, which is a function of natural gas marketing contracts established with infrastructure partners for providing the capital to build the facilities and pipeline. The Company expects realized prices to increase as daily sales volumes increase from the block.
The Company ended Q3 2025 with cash and cash equivalents of US$13.8 million, with the remaining US$110 million from the Etablissements Maurel & Prom S.A. ("Maurel & Prom" or "M&P") transaction expected upon and following closing, which is anticipated to occur in Q4 2025.
Jorge Fonseca, Chief Executive Officer, commented: "Importantly, production quantities and realized natural gas prices are both increasing while unit operating costs continue to decrease, a powerful combination that will significantly expand margins and overall profitability for the Company. November month to date gross daily production has increased to 33.8 MMcf/d across the two fields and, with key infrastructure now in place, the Company expects to see continuing increases in natural gas sales from Maria Conchita in Q4 as production is optimised from the Aruchara-4 well and recompletion work is completed at the Aruchara-3 well. This trend is expected to continue into Q1 2026 and throughout the whole of 2026 as additional transportation capacity comes online at Sinú-9, first looping the ...
