Highlights:

• LNG Energy Group expects to issue a reserves update by month-end in respect of the reserves to be acquired in Venezuela.

• Debt Repayments – Approximately U.S.$14.7 million amortization of term-loan debt principal.

• ESG Initiatives – Lewis Energy Colombia obtains ISO certification and dedicates property to reforestation in advance of its carbon reduction initiatives in Colombia.

• Natural Gas Compressor – New compressor will be used to optimize production and improve reserves life.

• Commencement of new Oilfield Services Division.

• Gas Sales Agreements – Amendments with off-takers allow for temporary lower nominations to facilitate maintenance and workover program.

• Capital Expenditures – Expecting to drill a development and a re-entry at an existing development well in the fourth quarter of 2024.
  

TORONTO, Oct. 21, 2024 (GLOBE NEWSWIRE) -- LNG Energy Group Corp. (TSXV: LNGE) (TSXV: LNGE.WT) (OTCQB: LNGNF) (FWB: E26) (the “Company” or “LNG Energy Group”) is pleased to an operational update on its projects in Venezuela and Colombia.

Corporate

Since August 2023, the Company has been able to repay approximately U.S.$14.7 million in amortization on its long-term bank debt.

Colombia

Environmental, Health and Safety and sustainability Practices

The Company is pleased to announce that its wholly owned subsidiary, Lewis Energy Colombia, Inc. (“LEC”), has successfully completed the following ISO recertifications, after an audit performed by Bureau Veritas:

• 9001:2015 – Quality Management System (QMS): this certification recognizes LEC for its successful implementation and continual improvement of its QMS.

• 14001:2015 – Environmental Management Systems (EMS): this certification recognizes LEC’s commitment to take proactive measures to minimize its environmental footprint, comply with relevant legal requirements and achieve their environmental objectives.

• 45001:2018 – Occupational Health and Safety (OH&S) Management System: this certification recognizes LEC’s commitment to systematically assess hazards and implement risk control measures, leading to reduced workplace injuries, illnesses and incidents.
  

LEC is also in the process of assigning 25 hectares (62 acres) to the Corporación Autónoma Regional del Atlántico (“CRA”), the environmental agency for the Atlántico state in northern Colombia. This land will be used for reforestation projects and for the purpose of protecting the local watershed. Currently, LEC has approximately 360 hectares (900 acres) in the area and this is land that will be used for environmental compensation purposes, contributing to a reduction in LEC’s carbon footprint.

Compressor at the Bullerengue Field

The Company is pleased to announce the completion of its new compressor project at the Bullerengue field. The compressor recently began operation and will be instrumental in increasing the reserves life of the field while facilitating access to an additional 1.67 Bcf of natural gas at the north side of the field. The compressor will also serve to increase LEC’s ability to respond to regulatory requirements and improve general operational efficiencies.

Source: Company images of the new compressor and facilities at the Bullerengue field.

Oilfield Services Division

LEC is continuing studies to offer drilling rig services to third parties in Colombia, as a way of optimizing resource use to increase company income, while allowing us to maintain a strong core rig crew, which helps improve our operational efficiency.

LEC has three rigs on the ground in its Sinú-San Jacinto Norte-1 Block (the “SSJN-1 block”) near Barranquilla, Colombia. They include one 1,600 HP top-drive drilling rig, one 1,000 HP top-drive drilling rig and one 550 HP workover rig. These rigs come complete with generators, pumps, BOPs, mud systems, tanks and other equipment needed to fully execute drilling and workovers operations. Together, the rigs and associated equipment have an estimated value of approximately U.S.$10 million.

The Company looks to mobilize its equipment and personnel in the fourth quarter of 2024 to pursue workover and drilling activities.

Gas Sales Agreements

As a result of unexpected production restrictions at certain wells in the Bullerengue natural gas field, the Company has had to limit natural gas deliveries under certain gas sales agreements dedicated to supplying natural gas demand. As a result of careful review of the legal, social and security circumstances, the natural gas supply needs of the Colombian gas market, and the Company’s commitment to meet its commercial obligations with its off-takers and strategic partner contracts, the Company considers it prudent to pursue short term volume delivery amendments reducing volumes by 5.0 MMbtu/d for a period of four months with no significant changes to LEC’s average natural gas sales price.

The Company is presently working on remediating this disruption and expects to have production back to normal levels upon execution of well maintenance and drilling activity. The Company is working on workover and drilling initiatives to make up for these sales volumes in the future and meet its average production and long-term valuation creation objectives and therefore does not expect this situation to have a long-term material impact on its operations and results.

Capital Expenditures

For the remainder of 2024, the Company expects to drill at least one additional development well and conduct a re-entry at an existing well at the SSJN-1 block onshore in Colombia in addition to its remaining workover campaign. The workover campaign is designed to address maintenance declines in production as well as increase production from the Company’s existing wells.

Venezuela

On April 17, 2024, LNG Energy Group’s wholly own subsidiary, LNGEG Growth I Corp. (“LNG Venezuela”) was conditionally entered into a binding agreement with PDVSA Petroleo S.A. (“PPSA”), a subsidiary of Petroleos de Venezuela S.A., the Venezuelan national oil company, for the operation of the Nipa-Nardo-Niebla and the Budare-Elotes CPPs in onshore Venezuela (collectively, the “Venezuela Blocks”). The Venezuela Blocks are currently producing 3,000 bbl/d of light and medium oil.

The Company is preparing a baseline to understand the work program and activities required to take over operations of these fields and optimize production and is in the process of certifying the reserves at certain of the Venezuela Blocks in accordance with National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities. The disclosure of these reserves is subject to review and approval of PPSA.

The CPPs were executed within the term of General License 44 issued by the US Office of Foreign Assets Control (OFAC). License 44 has been replaced by License 44A, and the Corporation is following the applicable regulatory procedures to operate in full compliance with the applicable sanction regimes. LNG Venezuela and PPSA have mutually agreed to extend the outside date of the CPPs to November 30, 2024.

Transfer Agent

LNG Energy Group announces that Odyssey Trust Company (“Odyssey”) has replaced Computershare Investor Services Inc. (“Computershare”) as the registrar and transfer agent of the Company effective September 11, 2024. Shareholders need not take any action in respect of the change in transfer agent.

All inquiries and correspondence relating to shareholders’ records, transfer of shares, lost certificates, or change of address should now be directed to Odyssey as follows:

Odyssey Trust Company
Trader’s Bank Building
702 – 67 Yonge Street
Toronto ON M5E 1J8

Phone: 1-587-885-0960
Fax:1-800-517-4553
Email: clients@odysseytrust.com
Website: www.odysseytrust.com/contact

As of the date hereof, Computershare remains the trustee of any applicable warrants and escrow arrangements.

Neither 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.

About LNG Energy Group

The Company is focused on the acquisition and development of oil and gas exploration and production assets in Latin America.

For more information, please see below:

Website:
www.lngenergygroup.com

Investor Relations:
James Morris, Vice-President, Business Development and Investor Relations
Email: investor.relations@lngenergygroup.com
Telephone: 205-835-0676

Find us on social media:
LinkedIn: https://www.linkedin.com/company/lng-energy-group-inc/
Instagram: @lngenergygroup

X: @LNGEnergyCorp

CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION:

This news release contains “forward-looking information” and “forward-looking statements” (collectively, “forward-looking statements”) within the meaning of applicable Canadian securities laws. 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. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often using phrases such as “expects”, “anticipates”, “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”, “should”, “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 are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties and other factors which may cause actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include: general business, economic, competitive, political and social uncertainties; delay or failure to receive any necessary board, shareholder or regulatory approvals, factors may occur which impede or prevent LNG Energy Group’s future business plans; and other factors beyond the control of LNG Energy Group. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this news release. Except as required by law, LNG Energy Group assumes no obligation to update the forward-looking statements, whether they change as a result of new information, future events or otherwise, except as required by law.

CPPs

Please see the Company’s news release dated April 24, 2024 for additional information with respect to the CCPs. There can be no guarantee that the Company or LNG Venezuela shall be able to complete the acquisition terms required by PPSA.

The CPPs were executed within the term of General License 44 issued by the US Office of Foreign Assets Control (OFAC). License 44 has been replaced by License 44A requiring US persons to wind down oil operations in Venezuela before May 31, 2024. License 44 has been replaced by License 44A, and the Corporation is following the applicable regulatory procedures to operate in full compliance with the applicable sanction regimes.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/2891cdb5-62b8-4666-80a7-49014f2eb929

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