NG ENERGY ANNOUNCES FILING OF ANNUAL AUDITED CONSOLIDATED FINANCIAL STATEMENTS

Canada NewsWire

CALGARY, AB, April 29, 2025

   -- 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 
      NPV10 of US$123.5 million 
 
   -- 21% increase to 2P reserves to Company gross 196.0 Bcf for before tax 
      NPV10 of US$328.4 million 
 
   -- 20% increase to 3P reserves to Company gross 364.7 Bcf for before tax 
      NPV10 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.

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 NPV10 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 NPV10 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 NPV10 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 NPV10 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

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