CALGARY, AB, June 23, 2025 – NG Energy International Corp. (“NGE” or the “Company”) (TSXV: GASX) (OTCQX: GASXF) is pleased to provide an update on its recent operational activities at Sinu-9 and Maria Conchita.
Sinu-9
Sinu-9 continues to achieve steady production volumes over 12 MMcf/d with the successful gathering, treatment, compression and delivery of the natural gas, under the Unified Transportation Regulation’s quality conditions, to the Promigas National Transportation System from the INFRAES plant. A second, backup compressor is currently being added to the plant with installation expected to be completed by the end of June. With a backup compressor in place, the Company expects to be able to increase production to a minimum of 15 MMcf/d through the INFRAES plant.
At the main Central Processing Facility (“CPF-1”), all the essential equipment has arrived on location. The equipment is now being inspected and maintained, while civil works are being finished and the Company’s supply chain team is finalizing the procurement of the auxiliary accessories, which are required for construction. Full installation of the dew point handling equipment is expected to be completed by the end of August 2025. Following installation of the dew-point handling equipment at the CPF-1, and including the operating INFRAES plant and backup compressor, the Company expects to reach total processing and compression capacity of 45-50 MMcf/d, with room for expansion.
Current transportation capacity at Sinu-9 is 30 MMcf/d. As previously disclosed in the Company’s May 28, 2025, news release, construction has commenced on a twin pipeline with the Company’s infrastructure partner INFRAES, which will double transportation capacity from Sinu-9. This project is being completed in two phases: (1) an 18-kilometer loop from Jobo along the existing right-of-way, which will increase transportation capacity to 40 – 45 MMcf/d and is expected to be completed by the end of October 2025; and (2) the full twin pipeline, which will increase transportation capacity to 60 MMcf/d and is expected to be completed in Q1 2026.
Maria Conchita
The Company remains on track to spud the Aruchara-4 well at the beginning of July. The Aruchara-4 well will target the Jimol formation to develop the H1A and H1B accumulations and define the potential extension of more reserves and resources in the H2B section and H4 fractures. The Aruchara-4 well will be drilled to a total depth of 10,000 feet, in three phases and, if successful, completed and tied in by the beginning of September 2025, which will support increasing production at Maria Conchita.
The compressor and plant expansion, which will increase production capacity at Maria Conchita to 28 MMcf/d, remains on track and in-line with the tie-in of the Aruchara-4 well by September 2025.
Immediately following the drilling of the Aruchara-4 well, the rig will be used to complete the previously announced workover and recompletion of the Aruchara-3 well, removing the downhole obstruction and returning the well to its full production capacity.
Extension of November 2022 Warrants
The Company is also pleased to announce that it intends to extend the expiry date of its outstanding common share purchase warrants to purchase up to 34,075,000 common shares at an exercise price of $1.08 per common share (the “Warrants”). The Warrants were originally issued in connection with the Company’s private placement of senior secured convertible debenture units, which was completed on November 30, 2022, and are governed by a warrant indenture dated as of the same date among the Company and TSX Trust Company. The Warrants are set to expire on November 30, 2025. Subject to acceptance by the TSX Venture Exchange, the Company will extend the expiry date of the Warrants to November 30, 2027. All other terms and conditions of the Warrants, including the exercise price, will remain unchanged.
About NG Energy International Corp.
NG Energy International Corp. is a growth-orientated natural gas exploration and production company focused on delivering long-term shareholder and stakeholder value through the discovery, delineation and development of large-scale natural gas fields in the Americas, supporting energy transition and economic growth. NGE’s team has extensive technical and capital markets expertise with a proven track record of building companies and creating significant value in South America. In Colombia, the Company is executing on this mission with a rapidly growing production base and an industry-leading growth trajectory, delivering natural gas into the premium-priced Colombian marketplace (~US$8/MMBtu) with projected triple digit production growth over the next 2-3 years towards a production goal of 200 MMcf/d. To date, the Company has raised over US$200 million in debt and equity and has constructed and commissioned 3 gathering, processing and treatment facilities and associated pipelines with gross processing and transportation capacity of 60 MMcf/d expected in Q3 2025 with significant capital contributions from insiders who currently own approximately 32% of the Company. For more information, please visit SEDAR+ (www.sedarplus.ca) and the Company’s website (www.ngenergyintl.com).
Cautionary Statement Regarding Forward-Looking Information
This news release contains “forward-looking information” and “forward-looking statements” (collectively, “forward-looking statements”) within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release, including, without limitation, statements related to installation of a back-up compressor at Sinu-9, installation of dew point handling equipment at Sinu-9, timeline for completion of the twin pipeline with INFRAES, timeline for completion of the drilling of the Aruchara-4 well, timeline for completion of the workover of the Aruchara-3 well and the extension of the expiry date of the Warrants.. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as “expects”, or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans”, “budget”, “scheduled”, “forecasts”, “estimates”, “believes” or “intends” or variations of such words and phrases or stating that certain actions, events or results “may” or “could”, “would”, “might” or “will” be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements.
Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Factors that could cause actual results to differ materially from those anticipated in these forward-looking statements are described under the caption “Risk Factors” in the Company's most recent Management Discussion and Analysis and its Annual Information Form dated April 28, 2025, which are available for view on SEDAR+ at www.sedarplus.ca. These risks include but are not limited to, the risks associated with the oil and natural gas industry, such as exploration, production and general operational risks, the volatility of pricing for oil and natural gas, the inability to market natural gas production and changes in natural gas sale prices, changing investor sentiment about the oil and natural gas industry, any delays in production, marketing and transportation of natural gas, drilling costs and availability of equipment, regulatory approval risks and environmental, health and safety risks. Forward-looking statements contained herein are made as of the date of this news release, and the Company disclaims, other than as required by law, any obligation to update any forward-looking statements whether as a result of new information, results, future events, circumstances, or if management's estimates or opinions should change, or otherwise. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, the reader is cautioned not to place undue reliance on forward-looking statements.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Abbreviations
The abbreviations set forth below have the following meanings:
| Oil, Natural Gas Liquids and Natural Gas | |||||
| Mcf | thousand cubic feet | ||||
| MMcf/d | million cubic feet per day | ||||
| MMBtu | one million British thermal units | ||||
| Other | |||||
| Q1 | first quarter | ||||
| Q3 | third quarter | ||||
Information Regarding the Company’s Working Interest Disclosure
With regard to the Company’s working interests held in both the Maria Conchita and Sinu-9 Blocks, in both the context of this news release and the Company’s previous news releases, the term “working interest”, ultimately refers to the rights and obligations agreed to, eventually, materialize a contractual interest in an exploration and production contract before the ANH, subject to the fulfillment of certain conditions. These conditions involve the assumption of financial risks and are generally linked to exploration by virtue of joint operating agreements. Once such conditions are fulfilled, the acquisition of a registered contractual interest, as party of record, in the exploration and production contract may materialize, by way of a request for approval of assignment before the ANH. For this reason, as is common practice within the oil and natural gas industry as a whole, the disclosed “working interest” may not coincide with the Company’s current contractual interest in the exploration and production contract.
The assignment and allocation of “working interests” does not affect or undermine, in any way, the rights and obligations of registered parties under the relevant exploration and production contracts. Registered parties remain wholly and totally liable before the ANH, the Colombian authorities and third parties in connection with any and all obligations, risks and liabilities derived from the execution, performance or termination of the exploration and production contracts. Conversely, the rights and obligations that comprise “working interests” are only enforceable vis a vis between the executing parties under private agreements, and have no legal effects before the ANH, the Colombian authorities or third parties.
As of the date hereof, the Company is a party of record and holds a 51% contractual interest, in the exploration and production contract for the Sinu-9 Block granted by and entered into with ANH. However, under the private agreements regarding the working interests in the Sinu-9 Block, the Company holds a 72% working interest. This means a 21% working interest is yet to be assigned and acknowledged as a contractual interest in the exploration and production contract, given the conditions to do so, including ANH approval, are yet to be fulfilled. Once these conditions are met, the Company will submit an approval request with ANH.
As disclosed in the Company’s news release dated February 10, 2025, the Company has agreed to sell a 40% contractual interest in the exploration and production contract for the Sinu-9 Block to Etablissements Maurel & Prom S.A., effective as of February 1, 2025. Additionally, Clean Energy Resources S.A.S. remains the operator of record under such exploration and production contract and before the ANH.
With respect to the Maria Conchita Block, the Company holds 100% of the contractual interest as the sole party and operator of record under the relevant exploration and production contract entered into with the ANH, and holds an 80% working interest under private agreements with third parties.
For further information:
NG Energy International Corp.
Brian Paes-Braga, Executive Chairman
Jorge Fonseca, CEO
Tel: +44 7498 236338
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NG Energy International Corp.
Suite 800, 365 Bay Street
Toronto, ON
Canada M5H 2V1
[email protected]