press release

NG ENERGY ANNOUNCES FILING OF ANNUAL AUDITED CONSOLIDATED FINANCIAL STATEMENTS

2025-04-29

TSX - Toronto Stock Exchange · Regulatory Filings

Canada NewsWire

Focus in FY 2024 was on the construction of critical infrastructure, which resulted in first natural gas production from the Company's second natural gas field, the 300,000+ acre Sinu-9 Block Over $70 million (over US$120 million including uncommitted credit) in fundraising from the Company's equity offering and debt refinancing, as well as the hiring of additional operational and technical team members to support the Company's reserves and production growth Subsequent to year end, the Company announced the sale of a 40% WI in Sinu-9 to Maurel & Prom for US$150 million resulting in additional operational strength along with a transformational change to the Company's balance sheet Record annual revenue of US$38.2 million versus US$12.0 million in FY 2023, a 218% increase YoY Record annual operating netback of US$4.93 /Mcf versus US$2.88 /Mcf in FY 2023, and a 61.8% operating income profit margin Subsequent to year end, production from Sinu-9 reached 12 MMcf/d (gross) as part of ongoing production tests, with production capacity expected to increase to over 40 MMcf/d (gross) in early Q3 2025 Slight decrease in production volumes from Maria Conchita due to downhole obstruction and compressor issues; work on a solution is ongoing and is expected to be completed by Q3 2025, alongside the drilling of the Aruchara-4 well in H2 2025 57% increase to 1P reserves to Company gross 81.0 Bcf for before tax NPV 10 of US$123.5 million 21% increase to 2P reserves to Company gross 196.0 Bcf for before tax NPV 10 of US$328.4 million 20% increase to 3P reserves to Company gross 364.7 Bcf for before tax NPV 10 of US$555.4 million Natural gas prices remain strong with recent fixed offtakes in place accounting for over $7.98 /Mcf

CALGARY, AB , April 29, 2025 /CNW/ - NG Energy International Corp. (" NGE " or the " Company ") (TSXV: GASX) (OTCQX: GASXF) is pleased to announce that it has filed on SEDAR+ its annual audited consolidated financial statements, annual management's discussion and analysis and its certification of annual filings for the fiscal year ended December 31, 2024 . The Company has also filed on SEDAR+ its Annual Information Form, dated April 28, 2025 , 51-101F1 – Statement of Reserves Data and Other Oil and Gas Information , Sproule International Limited's 51-101F2 – _Report on Reserves Data, Contingent Resources Data and Prospective Resources Data by Independent Qualified Reserves Evaluator or Auditor _and the Company's 51-101F3 – _Report of Management and Directors on Oil and Gas Disclosure _for the fiscal year ended December 31, 2024 .

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Highlights

Fiscal Year Ended December 31, 2024

Annual revenue of US$38.2 million versus US$12.0 million in FY 2023, a 218% increase YoY. Annual cash flow from operations of US$18.5 million versus US$(3.5) million in FY 2023. Realized average natural gas pricing during the year of US$7.98 /Mcf. Operating netback of US$4.93 /Mcf versus US$2.88 /Mcf in FY 2023, and a 62% operating income profit margin.

Q4 2024

Quarterly revenue of US$8.7 million versus US$4.6 million in Q4 2023, an 89% increase YoY. Quarterly cash flow from operations of US$2.2 million versus US$(1.2) million in Q4 2023.

Company Oil and Natural Gas Properties

Sinu-9

Over the course of FY 2024, the Company put in place all the necessary infrastructure required to begin commercial production at Sinu-9, including the construction of the Central Processing Facility 1 (the " CPF-1 ") and the 28.3 km pipeline connecting Sinu-9 to the national Promigas pipeline at Jobo. While the Company ran into issues in delivering natural gas under the Unified Transportation Regulation's quality conditions during the initial commissioning of the CPF-1, subsequent to year-end, the Company has taken the necessary steps to acquire the dew point handing equipment necessary to utilize the CPF-1 at full capacity and is in the process of installing such equipment. Additionally, subsequent to year-end, the Company successfully commissioned a mobile plant (the " INFRAES Plant ") on the Brujo-1X platform and has resumed production, first from the Magico-1X well, reaching 12 MMcf/d of steady production, and currently, from one zone in the Brujo-1X well at 10 MMcf/d with the ability to further increase production volumes. Following completion of the installation of the dew point handling equipment at the CPF-1, the Company is expected to see gross production capacity increase to over 40 MMcf/d by the beginning of Q3 2025.

In the Company's news release dated April 24, 2025 , the Company reported gross Proved + Probable + Possible (3P) reserves of 286.8 Bcf (398.3 Bcf project gross) of natural gas for before-tax NPV 10 of US$377.1 million , which represents a 17% increase YoY and can be broken down as follows:

Company gross Proved (1P) reserves of 32.0 Bcf (44.5 Bcf project gross) of natural gas for before-tax NPV 10 of US$22.3 million , which represents a 20% increase YoY; and Company gross Proved + Probable (2P) reserves of 130.1 Bcf (180.7 Bcf project gross) of natural gas for before-tax NPV 10 of US$178.8 million , which represents a 14% increase YoY.

Maria Conchita

The Maria Conchita Block contributed most of the Company's FY 2024 average daily gross production of 13 MMcf/d. Initially, the Aruchara-3 well was producing, in conjunction with the Aruchara-1 well, a baseline of 14 MMcf/d with subsequent increases throughout FY 2024 to average daily gross production rates greater than 19 MMcf/d. Unfortunately, compressor issues during the second half of the year reduced the Company's ability to produce at these levels and as a result, the Company is transitioning its compressor system to enhance operational efficiency and mitigate risks, including installing a reliable backup system. At the same time, the Company is also expanding its processing and compression equipment to increase total production capacity to 28 MMcf/d in anticipation of drilling the Aruchara-4 well in H2 2025.

In the Company's news release dated April 24, 2025 , the Company reported gross Proved + Probable + Possible (3P) reserves of 78.0 Bcf (97.5 Bcf project gross) of natural gas and 115 Mbbl (143 Mbbl project gross) of condensate for before-tax NPV 10 of US$178.3 million , which represents a 31% increase YOY and can be broken down as follows:

Company gross Proved (1P) reserves of 49.0 Bcf (61.2 Bcf project gross) of natural gas and 76 Mbbl (95 Mbbl project gross) of condensate for before-tax NPV 10 of US$101.2 million , which represents a 96% YoY increase; and Company gross Proved + Probable (2P) reserves of 65.9 Bcf (82.4 Bcf project gross) of natural gas and 98 Mbbl (123 Mbbl project gross) of condensate for before-tax NPV 10 of US$149.6 million , which represents a 40% YoY increase.

Maurel & Prom Transaction

Subsequent to year-end and as disclosed in the Company's news release dated February 10, 2025 , the Company entered into a definitive asset purchase agreement with Etablissements Maurel & Prom S.A. (" Maurel & Prom ") for the sale of a 40% operating working interest in Sinu-9 for total cash consideration of US$150 million . The Company has received an initial payment of US$20 million with the balance of the consideration, US$130 million , to be received upon completion of the transaction. Completion is conditional on the satisfaction or waiver of all the conditions precedent outlined in the definitive asset purchase agreement, including, but not limited to, obtaining all necessary regulatory approvals, including the approval of the Colombian National Hydrocarbons Agency (" ANH "). The application has been filed with the ANH for approval of the transaction.

Brian Paes-Braga , Executive Chairman of the Board of Directors, commented, "2024 was a pivotal year for NGE. First, we were successful in raising the necessary capital to advance our business as well as strengthen our balance sheet. Second, we added key team members in an effort to strengthen our operational and technical capabilities. Third, we focused on working with our infrastructure partners to build out the critical infrastructure at Sinu-9, successfully connecting the field to Colombia's national transportation system through the completion of the CPF-1 and a 28.3 km pipeline. Fourth, after a long and competitive process, we also welcomed our valued strategic partners at Maurel & Prom, securing a significant US$150 million transaction for a 40% operating working interest in Sinu-9, which was announced subsequent to year-end. While we faced challenges with small amounts of condensate at Sinu-9 and compressor issues at Maria Conchita, our team is implementing solutions, including the commissioning of the INFRAES Plant, installing the necessary dew point handling equipment to the CPF-1 and upgrades to our compression systems. These efforts lay a strong foundation for 2025, which we expect to be a defining year for NGE. With a tier-1 operating partner at Sinu-9 and substantial production growth anticipated from both fields—reaching a minimum of 40 MMcf/d at Sinu-9 and 28 MMcf/d at Maria Conchita—we are well-positioned to contribute meaningfully to addressing Colombia's natural gas supply deficit with onshore, domestic production, providing jobs and revenue for the country."

Senior Management Changes

Subject to the approval of the TSX Venture Exchange, the Company is pleased to announce the appointment of Mr. David Prieto as Chief Financial Officer of the Company effective as of April 28, 2025 . The Company's former Chief Financial Officer, Mr. Jorge Fonseca , will transition to the role of Chief Executive Officer with the Company's former Chief Executive Officer, Mr. Brian Paes-Braga , transitioning to the role of Executive Chairman of the Board of Directors of the Company. Additionally, the Company has accepted Mr. Don Sewell's resignation as President of the Company, which will be effective upon the earlier of: (i) September 30, 2025 ; or (ii) the completion of the Company's transaction with Maurel & Prom. Following his resignation, Mr. Sewell will continue on in his role as a member of the Board of Directors of the Company.

Mr. Prieto has over 18 years of experience, primarily in the oil & natural gas industry in Colombia , specializing in treasury, capital markets, structured finance, M&A, debt restructuring and energy asset commercialization. He has led the structuring of banking financings and the issuance of international bonds exceeding $10 billion . He previously served as Director of Treasury, Capital Markets, Commercialization, and Transportation at Sierracol Energy and held various roles at Frontera Energy Corp., including Director of Treasury and New Business. Mr. Prieto began his career at S&P BRC ratings and Incorbank investment banking. He has also been a member of the board of directors of Oleoducto de los Llanos. In addition to his corporate career, he has been a university professor for ten years, teaching finance at both the undergraduate and graduate levels. Mr. Prieto holds a Bachelor's degree in Finance and International Relations from Universidad Externado de Colombia and a Master's in Financial Management from Instituto Europeo de Posgrados.

In connection with the appointment of Mr. Prieto as Chief Financial Officer, he will be granted 300,000 restricted share units of the Company, subject to vesting and performance requirements.

Brian Paes-Braga , Executive Chairman, continued, "I am delighted to welcome David to our management team. David brings with him wealth of experience in the Colombian oil & natural gas industry, through his time at Sierracol and Frontera, and we are very excited to add an executive of David's calibre to our team at this critical moment for NGE as we address Colombia's natural gas supply deficit. Additionally, I would like to congratulate Jorge on his appointment as CEO. Jorge originally joined the Company back in December of 2022 and has played a pivotal role in the Company's growth to date. I can think of no better person to lead NGE into this next stage of growth and I look forward to continuing to work with Jorge in my capacity as Executive Chairman. Lastly, I would like to express a sincere thank you to Don Sewell for his commitment to the Company during his time as President. I wish Don all the best in his future endeavours and look forward to continuing to work with him as a member of the board of directors."

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 production growth at the Sinu-9 Block, the timeline for brining processing and production capacity online at the Sinu-9 Block, the drilling of the Aruchara-4 well and completion of the Company's transaction with Maurel & Prom. 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 | | | | | | Mbbl | thousand barrels | | | | | Mcf | thousand cubic feet | | | | | MMcf | million cubic feet | | | | | MMcf/d | million cubic feet per day | | | | | Bcf | billion cubic feet | | | | | MMBtu | one million British thermal units | | | | | | | | | | | Other | | | | | | FY | fiscal year | | | | | H2 | second half | | | | | km | kilometre | | | | | NPV 10 | net present value using a 10% forward discount rate | | | | | Q3 | third quarter | | | | | Q4 | fourth quarter | | | | | WI | working interest | | | | | YoY | year-over-year | | | |

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.