NG ENERGY ANNOUNCES YEAR-END RESERVES AND RESOURCES AND COMMENCEMENT OF DRILLING OF HECHICERO-1X AT SINU-9
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Company gross 1P reserves BT NPV10increased 67% over the previous year Company gross 2P reserves BT NPV10increased 50% over the previous year Company gross 3P reserves BT NPV10increased 42% over the previous year Company gross unrisked best estimate contingent resources BT NPV10increased 73% over the previous year Company gross unrisked best estimate prospective resources BT NPV10increased 50% over the previous year Seven new wells planned for 2026 expected to meaningfully increase reserve and resource volumes M&P has commenced operations for drilling at the Hechicero-1X well at Sinu-9 The Aruchara-5 well at Maria Conchita expected to be spudded in March 2026
CALGARY, AB, Feb. 23, 2026/CNW/ - NG Energy International Corp. ("NGE" or the "Company") (TSXV: GASX) (OTCQX: GASXF) is pleased to announce the Company's 2025 year-end reserves and resources for both Sinu-9 and Maria Conchita as evaluated by the Company's independent qualified reserves evaluator Sproule International Limited ("Sproule ERCE").
Reserve and Resource Highlights
Total Reserves and Resources – Colombia:
The table below summarizes the Company's aggregated 2025 year-end reserves and resources based on the current working interests held by the Company through MKMS Enerji Sucursal Colombia ("MKMS Colombia"), the Colombian branch of the Company's indirect wholly owned subsidiary, MKMS Enerji Anonim Sirketi S.A. ("MKMS"), in the Sinu-9 Block and Maria Conchita Block, being a 39% non-operating working interest in the Sinu-9 Block and 80% working interest in the Maria Conchita Block.
| | Volumes1 (Bcf) | BT NPV101 (USD million) | Change in BT NPV10 over the previous year | | Company gross Proved (1P) reserves | 64.5 | $189.2 | 67 % | | Company gross Proved + Probable (2P) reserves | 132.3 | $368.7 | 50 % | | Company gross Proved + Probable + Possible (3P) reserves | 225.6 | $543.1 | 42 % | | Company gross unrisked best estimate contingent resources (development pending) | 114.2 | $292.5 | 73 % | | Company gross unrisked best estimate prospective resources | 263.9 | $642.5 | 50 % |
| Note: | | | | | 1. | The information included in the above table that pertains to the Sinu-9 Block has been adjusted by NGE from Sproule ERCE's evaluation contained in the Sinu-9 Report (as such term is defined below). |
The table below summarizes the Company's aggregated 2025 year-end reserves and resources as outlined in the Sinu-9 Report and Maria Conchita Report (as such terms are defined below).
| | Volumes (Bcf) | BT NPV10 (USD million) | Change in BT NPV10 over the previous year | | Company gross Proved (1P) reserves | 80.5 | $213.4 | 73 % | | Company gross Proved + Probable (2P) reserves | 192.3 | $493.2 | 50 % | | Company gross Proved + Probable + Possible (3P) reserves | 355.5 | $785.3 | 41 % | | Company gross unrisked best estimate contingent resources (development pending) | 170.6 | $398.1 | 72 % | | Company gross unrisked best estimate prospective resources | 326.7 | $802.4 | 43 % |
Sinu-9 Block (72% WI):
| | Project Volumes (Bcf) | NGE Share Volumes (Bcf) | BT NPV10 (USD million) | Change in BT NPV10 over the previous year | | Company gross Proved (1P) reserves | 48.1 | 34.6 | $52.8 | 137 % | | Company gross Proved + Probable (2P) reserves | 181.4 | 130.6 | $271.6 | 52 % | | Company gross Proved + Probable + Possible (3P) reserves | 393.8 | 283.5 | $528.5 | 40 % | | Company gross unrisked best estimate contingent resources (development pending) | 170.8 | 123.0 | $230.6 | 69 % | | Company gross unrisked best estimate prospective resources | 188.7 | 135.8 | $348.8 | 17 % |
Sinu-9 Block (39% WI):
As announced in the Company's news release dated January 6, 2026, subsequent to year-end (December 31, 2025), the Company, through MKMS and MKMS Colombia, completed its previously announced transactions with: (i) Etablissements Maurel & Prom S.A. ("Maurel & Prom" or "M&P") for the sale of a 40% operating working interest in the Sinú-9 Block for total cash consideration of US$150 million; and (ii) the minority partners at the Sinú-9 Block, together with Maurel & Prom, for the acquisition of a collective 28% working interest in the Sinú-9 Block (collectively, the "Sinu-9 Transactions"). The table below summarizes the adjusted reserves and resources reflecting the 39% non-operating working interest in the Sinú-9 Block that the Company now holds.
| | Project Volumes1 (Bcf) | NGE Volumes1 (Bcf) | BT NPV101 (USD million) | Change in BT NPV10 over the previous year | | Company gross Proved (1P) reserves | 48.1 | 18.7 | $28.6 | 137 % | | Company gross Proved + Probable (2P) reserves | 181.4 | 70.7 | $147.1 | 52 % | | Company gross Proved + Probable + Possible (3P) reserves | 393.8 | 153.6 | $286.3 | 40 % | | Company gross unrisked best estimate contingent resources (development pending) | 170.8 | 66.6 | $124.9 | 69 % | | Company gross unrisked best estimate prospective resources | 188.7 | 73.1 | $188.9 | 17 % |
| Note: | | | | | 1. | The information included in the above table that pertains to the Sinu-9 Block has been adjusted by NGE from Sproule ERCE's evaluation contained in the Sinu-9 Report (as such term is defined below). |
Maria Conchita Block (80% WI):
| | Project Volume (Bcf) | NGE Share Volumes (Bcf) | BT NPV10 (USD million) | Change in BT NPV10 over the previous year | | Company gross Proved (1P) reserves | 57.3 | 45.8 | $160.6 | 59 % | | Company gross Proved + Probable (2P) reserves | 77.0 | 61.6 | $221.6 | 48 % | | Company gross Proved + Probable + Possible (3P) reserves | 90.0 | 72.0 | $256.8 | 44 % | | Company gross unrisked best estimate contingent resources (development pending) | 59.5 | 47.6 | $167.6 | 77 % | | Company gross unrisked best estimate prospective resources | 238.5 | 190.8 | $453.6 | 72 % |
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Commencement of Drilling Hechicero-1X
The Company is also pleased to announce that Maurel & Prom, the operator of the Sinú-9 Block, has commenced drilling operations at the Hechicero-1X exploration well. Hechicero-1X represents the first well in a planned six-well drilling program at the Sinú-9 Block for 2026, leveraging Maurel & Prom's extensive operational expertise in onshore natural gas development, positioning the joint venture to efficiently fast-track and unlock Sinu-9's potential.
The Hechicero-1X well is being drilled from the same platform as the Brujo-1X well (which previously tested 51 MMcf/d) and is targeting prospective natural gas-bearing sands in the Ciénaga de Oro formation, with additional potential in underlying Basal sandstones. Drilling is being conducted using a state-of-the-art 1,500-horsepower hydraulic / automated rig, with an anticipated total vertical depth of approximately 8,800 feet.
In support of ongoing development, the Sinú-9 Block benefits from existing transportation infrastructure with a current capacity of 30 MMcf/d to deliver natural gas to market. This capacity is scheduled to expand to 40 MMcf/d at the beginning of Q2 2026, enhancing the project's ability to monetize discoveries promptly and contribute to Colombia's growing demand for clean, reliable natural gas.
Maria Conchita Operational Update
The Company is also pleased to provide an operational update on the Maria Conchita Block.
The workover of the Aruchara-3 well was successfully completed on December 22, 2025, with the recovery of mechanical obstructions and subsequent recompletion of the well. The field is currently producing at a stable rate of 12.0 MMcf/d. The Company is planning a sand cleanup operation in the wellbores of the Aruchara-3 and Aruchara-4 wells during March 2026, which is expected to further optimize and increase production rates.
The Company has received drilling approval for the Aruchara-5 development well from the Agencia Nacional de Hidrocarburos (ANH) and has initiated the contracting process for civil works and key service providers. The Company anticipates spudding the well by the end of March 2026.
These activities support the Company's ongoing efforts to expand production capacity at Maria Conchita, where current infrastructure supports up to 30 MMcf/d following recent expansions.
"Our 2025 year-end reserves and resources reports demonstrated a substantial increase in net present value across our two conventional onshore natural gas fields, driven by Sproule ERCE's updated price deck that acknowledges Colombia's ongoing natural gas supply deficit, which is expected to persist for years to come," said Brian Paes-Braga, Executive Chairman of NGE. "After a year dedicated to infrastructure expansion, we now have the processing and transportation capacity in place to swiftly bring new production online. We are thrilled to collaborate with Maurel & Prom on the six-well drilling program at Sinu-9, capitalizing on their proven expertise in onshore natural gas operations to accelerate production growth and help meet Colombia's domestic natural gas needs. Infrastructure enhancements continue, with drilling and development activities advancing concurrently throughout the year. At Maria Conchita, the Aruchara-5 well is set to be spudded by the end of March, with further optimizations planned for the field's existing producing wells."
Additional Disclosure Regarding Sinu-9 and Maria Conchita
Sinu-9
The report entitled "Detailed Property Report - Sinu-9 Block, Colombia - Evaluation of the P&NG Reserves and Resources of NG Energy International" (the "Sinu-9 Report") was prepared by Sproule ERCE with an effective date of December 31, 2025 and a preparation date of February 13, 2026. The Company's working interest in Sinu-9, located in the Lower Magdalena Valley basin in the Cordoba department, Colombia, was, as of the effective date of the Sinu-9 Report, 72%, subject to payment of ANH sliding scale royalties and was reduced to 39% upon completion of the Sinu-9 Transactions as announced in the Company's news release dated January 6, 2026. In the Sinu-9 Report, reserves have been assigned in the Brujo, Encanto, Hechicero, Magico and Mago fields, contingent resources have been assigned in the Encanto, Hechizo and Mago fields and prospective resources have been assigned in the Embrujo, Ensalmo, Sortilegio, Milagroso, Brujo-Porquero and Hechicero-Porquero prospects and leads. Contingent resources for Sinu-9 are petroleum and natural gas classified as "development pending" and are attributed a chance of development of 80%. The prospective resources assigned to the Brujo-Porquero, Hechicero-Porquero and Milagroso fields are subclassified as "prospects" and are attributed a chance of discovery of 58-60% and a chance of development of 66%. The prospective resources assigned to the Embrujo, Ensalmo and Sortilegio fields are subclassified as "lead" and are attributed a chance of discovery of 25-30% and a chance of development of 41%.
Total natural gas is planned to be produced through new or existing wellbores and a pipeline to a processing facility using established recovery technology.
The development plan for the reserves area includes producing from the Brujo-1X and Magico-1X wells as well as drilling a total of 17 additional wells; 5 in the Hechicero field, 7 in the Magico field, 3 in the Brujo field, 1 in the Encanto field and 1 in the Mago field. Production will be processed through a dehydration and compression facility as well as a natural gas pipeline from Sinu-9 to Jobo station.
The development plan for the contingent resources area located within Sinu-9 includes the drilling of 5 locations for the low estimate scenario, 11 locations for the best estimate scenario (7 in the Hechizo field and 4 in the Mago field) and 16 locations for the high estimate scenario (9 in the Hechizo field, 4 in the Mago field and 3 in the Encanto field). Production will be processed through new facilities to be built by the Company. Due to the number of reservoirs identified in the area, the number of wells may change by category according to the uncertainty identified in the reservoir areas.
The development plan for the prospective resources area located within Sinu-9 includes the drilling of 13 locations: 4 in the Milagroso field, 2 in the Embrujo field, 3 in the Ensalmo field, 2 in the Sortielgio field and 2 in the Porquero formation. Production will be processed through new facilities to be built by the Company. Due to the number of reservoirs identified in the area, the number of wells may change by category according to the uncertainty identified in the reservoir areas.
The natural gas reserves and resources were estimated based on the technically recoverable volume, budgeted operating and capital costs and the terms of the fiscal regime. Forecasts of net revenue were prepared by predicting the annual production from the reserves, resources and product prices. Natural gas reserves and resources have only been assigned based on the natural gas contracts and the natural gas contract precedents provided by the Company and expected to be in place at production start-up. There is no certainty it will be commercially viable to produce any portion of the contingent resources and there is no certainty that any portion of the prospective resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the resources.
Maria Conchita
The report entitled "Detailed Property Report - Maria Conchita Block, Colombia - Evaluation of the P&NG Reserves and Resources of NG Energy International" (the "Maria Conchita Report") was prepared by Sproule ERCE with an effective date of December 31, 2025 and a preparation date of February 13, 2026. The Company holds an 80% working interest in Maria Conchita, located in the Guajira Basin, Colombia. In the Maria Conchita Report, reserves have been assigned in the area delimited by the activities to which the Company is committed to performing, contingent resources have been assigned in the additional areas of the reservoirs based on the incremental activity required to recover all technically recoverable volumes from known accumulations and prospective resources have been assigned in certain areas of the reservoirs that are geologically separated from known accumulations and that are considered undiscovered accumulations. Contingent resources for Maria Conchita are petroleum and natural gas classified as "development pending" and are attributed a chance of development of 0.73. The prospective resources for Maria Conchita are subclassified as "prospect" and are attributed a chance of geological success of 32-41% and a chance of development of 0.73.
Total natural gas is planned to be produced through new and existing wellbores and a pipeline to a processing facility using established recovery technology.
The development plan for the reserves area located within Maria Conchita includes the production maintenance of Aruchara-1, Aruchara-3 and Aruchara-4 wells, as well as the drilling of a total of 7 wells; 4 in the Aruchara field and 3 in the Tinka field on 425 acres spacing. Production will be processed through an existing facility.
The development plan for the contingent resources area located within Maria Conchita includes the drilling of a total of 15 wells; 13 in the Aruchara field and 2 in the Tinka field on 425 acres spacing. Additionally, expansion of the existing facility is included to a total capacity of 60 MMcf/d. Due to the number of reservoirs identified in the area, the number of wells may change by category according to the uncertainty identified in reservoir areas, since they are not completely centric with respect to each other.
The development plan for the prospective resources area located within Maria Conchita (undeveloped area related to the Aruchara and Tinka fields) includes the drilling of 29 wells and the deepening of 1 well on 425 acres spacing across the intervals of interest H2, H2B, H3, H4 and H5.
The natural gas reserves and resources were estimated based on the technically recoverable volume, operating and capital costs and the terms of the fiscal regime. Forecasts of net revenue were prepared by predicting the annual production from the reserves, resources and product prices. Natural gas reserves and resources have only been assigned based on the natural gas contracts and the natural gas contract precedents in effect as of date of the Maria Conchita Report. There is no certainty it will be commercially viable to produce any portion of the contingent resources and there is no certainty that any portion of the prospective resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the resources.
With regard to the costs associated with achieving additional commercial production at Maria Conchita and Sinú-9, and the general timeline of the projects, please see the Company's Annual Information Form dated April 28, 2025 and its most recent Management's Discussion & Analysis, both of which can be found at www.sedarplus.ca.
Sproule International Limited, an independent qualified reserves and resources evaluator, has conducted the reserves and resource evaluation for Maria Conchita and Sinú-9 in accordance with the Canadian Oil and Gas Evaluation Handbook (the "COGE Handbook"). It adheres in all material aspects to the principles and definitions established by the Calgary Chapter of the Society of Petroleum Evaluation Engineers regarding annual reserve and resource reports that are being released in the public domain. The COGE Handbook is incorporated by reference in National Instrument 51-101 - _Standards of Disclosure for Oil and Gas Activities_("NI 51-101").
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 energy assets 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, successfully monetized a US$150 million farm down and has constructed and commissioned 3 gathering, processing and treatment facilities and associated pipelines with gross processing and transportation capacity of 60 MMcf/d 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 any development forecast, the completion of the drilling of the Hechicero-1X well, transportation capacity at the Sinu-9 Block, the timeline for spudding the Aruchara-5 well, the timeline for completing additional work at the Aruchara-3 well and any information concerning the intentions, plans and future actions of the Company. 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.