CALGARY, AB, July 2, 2026 – NG Energy International Corp. (“NGE” or the “Company”) (TSX: GASX) (OTCQX: GASXF) is pleased to provide an operational update on activities at its Maria Conchita and Sinú-9 Blocks in Colombia. The Company’s working interests in the Maria Conchita Block and the Sinú-9 Block are held through Operadora NG Energy Sucursal en Colombia (formerly, MKMS Enerji Sucursal Colombia) (“Operadora Colombia”), the Colombian branch of the Company’s indirect wholly-owned subsidiary, Operadora NG Energy International, S.A. (formerly, MKMS Enerji Anonim Sirketi S.A.) (“Operadora”).
Sinu-9 Block
The Magico-2X well – the second well of the current six-well drilling program at Sinú-9 operated by Maurel & Prom Colombia Sociedad Limitada (“M&P Colombia”) – was spudded on June 26, 2026, with the Pre-CDO–San Cayetano formation as its primary target. The well is designed with three sections (16 inch, 12-1/4 inch and 6-3/4 inch) to a total measured depth of 7,500 feet. Drilling and completion of the well is expected to take approximately 35 days, with the well to be connected to the central processing facility for production thereafter.
Magico-2X’s focus on the Pre-CDO–San Cayetano formation follows the strong deliverability demonstrated at the Hechicero-1X well, which has tested at rates of up to 26.4 MMcf/d gross (10.3 MMcf/d net) from this zone – the newly discovered formation that has opened a wider area for natural gas presence at this stratigraphic level across the Sinú-9 Block. Following this testing, M&P Colombia has determined to manage the well at a sustainable production rate of approximately 15 MMcf/d gross (5.85 MMcf/d net) from the Pre-CDO–San Cayetano zone, consistent with sound reservoir management practices to protect the long-term performance and integrity of the well.
The initial pipeline loop to Jobo, constructed by the Company's infrastructure partner INFRAES S.A.S. E.S.P., has been completed. Mechanical commissioning activities at the Jobo and Guayabal facilities are underway over the coming weeks and are expected to increase transportation capacity at Sinú-9 from its current 30 MMcf/d gross (11.7 MMcf/d net) to between 40 and 45 MMcf/d gross (15.6 to 17.6 MMcf/d net).
Current production at Sinú-9 is approximately 17.5 MMcf/d gross (6.8 MMcf/d net).
María Conchita Block
Total field production at Maria Conchita is currently approximately 14.8 MMcf/d gross (11.8 MMcf/d net). The Maria Conchita Block benefits from current infrastructure supporting up to 30 MMcf/d gross (24.0 MMcf/d net) of processing and transportation capacity.
The next development well at Maria Conchita, Aruchara-6, is expected to spud immediately following completion of the ongoing Aruchara-1 workover. Workover operations at Aruchara-1 commenced on June 15, 2026, and are expected to be completed by July 10, 2026, targeting the isolation of currently produced zones, the opening of new zones, the deployment of sand control equipment, characterization of upper intervals, and recompletion of the well. Civil works at the Aruchara-6 location are expected to commence during the coming week, with the drilling rig to be mobilized to the well immediately following completion of the Aruchara-1 workover.
M&P Transaction Update
The Company has received the US$15 million instalment payment from Etablissements Maurel & Prom S.A. due in June 2026 in connection with the Sinú-9 Transactions (see Company news release dated January 6, 2026), bringing total consideration received on the transaction to approximately US$135 million to date. The remaining US$15 million instalment is expected to be received in July 2026, which will bring total consideration received on the transaction to the full US$150 million.
Jorge Fonseca, CEO of NG Energy, commented: “We are pleased that M&P Colombia, as operator of the Sinú-9 Block, delivered the spud of Magico-2X on schedule, targeting the Pre-CDO–San Cayetano formation as its primary target. Hechicero-1X has already demonstrated the strength of this zone, testing at rates of up to 26.4 MMcf/d gross and now sustaining steady production at 15 MMcf/d – exactly why we believe Pre-CDO–San Cayetano has the potential to be a key driver of production growth across the Sinú-9 Block as the six-well campaign advances. Combined with the completion of the INFRAES pipeline loop to Jobo, we are positioning the block for a meaningful step-up in takeaway capacity as commissioning progresses over the coming weeks. At Maria Conchita, our team is advancing the Aruchara-1 workover ahead of spudding Aruchara-6, our next development well at the block. It is a productive period across both of our assets, and we look forward to providing further updates as this work progresses.”
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 oil and 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 North and 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 with a goal of being a material supplier of clean natural gas to Colombia and a broader vision of becoming a global energy platform business and providing prosperity for all stakeholders. Over the past 3 years, the Company has successfully raised and deployed over US$200 million in debt and equity, monetized 40% of one of it’s assets for US$150 million in cash and has partnered in the construction and commissioning of 3 gathering, processing and treatment facilities and associated pipelines 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 the drilling of the Magico-2X well, the timeline for increased transportation capacity at the Sinú-9 Block, the timeline for completion of the Aruchara-1 workover and the timeline for spudding of the Aruchara-6 well. 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 March 26, 2026, 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.
No securities regulatory authority has either approved or disapproved the contents of this news release. The Toronto Stock Exchange accepts no responsibility for the adequacy or accuracy of this news release.
Abbreviations
The abbreviations set forth below have the following meanings:
| Oil, Natural Gas Liquids and Natural Gas | |
| MMcf/d | million cubic feet per day |
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, which are held by Operadora Colombia, the Colombian branch of the Company’s indirect wholly-owned subsidiary, Operadora,, 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, such as Operadora, 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.
With respect to the Sinu-9 Block, the Company (through Operadora and Operadora Colombia) is a party of record and holds a 39% contractual interest in the exploration and production contract for the Sinu-9 Block granted by and entered into with ANH. With respect to the Maria Conchita Block, the Company (through Operadora and Operadora Colombia) 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
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NG Energy International Corp.
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