NG ENERGY ANNOUNCES COMMISSIONING OF 28.3KM PIPELINE AT SINU-9 BY ITS PARTNERS INFRAES AND KRONOS

CALGARY, AB, Aug. 26, 2024 /CNW/ - NG Energy International Corp. ("NGE" or the "Company") (TSXV: GASX) (OTCQX: GASXF) is pleased to announce the commissioning of the 28.3 km pipeline from Jobo to the Brujo Central Processing Facility (the "CPF") at Sinu-9 by its partners INFRAES and Kronos. The permitting, engineering, procurement and construction to commissioning of this pipeline project has taken place over nine months and is the result of the tireless efforts of our partners at INFRAES and Kronos as well as the community's accommodation in Cordoba to bring this greenfield project to life. The commissioning of this pipeline marks a significant milestone in the Company's mission of bringing natural gas to the national transportation system from one of the most prolific onshore natural gas discoveries in Colombia in the last twenty years.  

Mr. Hugo Giraldo, CEO of INFRAES commented. "As we celebrate this significant milestone together, I'd like to acknowledge that our collaboration with NG Energy on Phase 1 of the Sinu-9 project has fostered a strong foundation of trust. We're looking forward to a long-term collaboration with NG Energy on this first phase and future phases that will significantly contribute to urgently addressing Colombia's current gas supply challenges."

Sinu-9 Development Update

Over the last three weeks, the Company and its partners have completed the following:

• The successful completion of the Brujo-1x well;
• Completion of the construction of the 28.3 km pipeline from the CPF to Jobo;
• Delivery of vital equipment including treatment plant and compressors;
• Began the commissioning of the pipeline with natural gas tests; and
• Continued electrical and mechanical work critical for full commercial operations of the CPF.

Don Sewell, President and a Director of NGE commented, "I am pleased to see everyone involved with this critical transition energy project come together and execute over the last three weeks, highlighted by the successful delivery and mobilization of vital equipment, including the treatment plant and two compressors as the Company enters the commissioning phase of our Phase-1 infrastructure project at Sinu-9. The team has worked hard to coordinate all 14 partners and contractors to ensure a safe and successful commissioning of the full commercial operation at the CPF. After this week's continued standard safety testing for the pipeline, we expect to start gas sales by the first week of September, with a gradual safe and steady ramp-up to full production by the end of September."

Appointment of Vice President Operations

The Company is pleased to announce the appointment of Leonardo Chavez as Vice President of Operations, as part of the Company's human resource strategy as it executes the successful completion of Phase-1 and enters Phase-2 at Sinu-9 along with evaluating production optimization and growth opportunities at Maria Conchita.

Leonardo Chávez brings over 23 years of experience in the oil and natural gas industry, with a background that includes serving as Chief Operating Officer for Bond Energy Solutions in Colombia, and a 19-year tenure at Schlumberger, where he held various leadership positions such as Sales & Marketing Manager for Colombia, Peru, and Ecuador, Operations Manager for Latin America North, and other key roles. Mr. Chávez holds a degree in Mechanical Engineering from Universidad Simon Bolivar in Caracas, Venezuela, and two executive MBAs from Mannheim Business School in Germany and ESSEC Business School in France.

Brian Paes-Braga, Chairman and CEO of NGE commented "This marks a historic day for NG Energy, our shareholders and for all Colombians as our partners commission the long anticipated 28.3km pipeline that will alone represent 4% of Colombia's current gas needs. I want to personally thank Hugo from INFRAES, our partners at Kronos, and their remarkable teams, as well as our entire team for working tirelessly throughout the summer to complete Phase 1, which represents the first gateway to bringing our desperately needed transition fuel to the Colombian market from our two major discoveries at Brujo and Magico on the world class Sinu-9 concession. Q3 will be a turning point for our Company as we ramp up production at Sinu-9 from Phase 1 and set our sights on continued industry-leading organic growth as part of our mission to be Colombia's natural gas champion."

Mr. Paes-Braga continued "I want to personally welcome Leonardo to the NG team. Leonardo's impressive track record operationally in the energy sector, combined with his deep understanding of Latin American markets, makes him an exceptional addition to our team. We are fortunate to have him join us as he focuses his attention on working closely with our exploration team in executing our development program as well as further optimizing our production and development operations as we enter our next phase at Sinu-9 and as a business where operational excellence becomes a key factor in sustainable value creation."

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 developing countries, 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. The Company expects to achieve >150% increase in 2024 and has seen a 551% year-over-year increase in 3P reserves, 314% year-over-year increase in 2P reserves and 241% increase in 1P reserves. To date, over US$100 million has been invested in the exploration and development of Sinu-9 and Maria Conchita with significant contributions from insiders who currently own approximately 34% of the Company. Recently, Macquarie Group provided financing of up to US$100 million, including initial committed funding of US$50 million, resulting in a fully-funded 2024/2025 development plan and aligning NGE with a global financial institution. 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 timeline for commencing production at Sinu-9, the commencement of  gas sales by the first week of September, and the ramp-up to full production by the end of September. 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 26, 2024, 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:

	Natural Gas
	MMcf/d	million cubic feet per day
	MMBtu	one million British thermal units

	Other
	3P reserves	Proved + Probable + Possible reserves
	2P reserves	Proved + Probable reserves
	1P reserves	Proved reserves

Information Regarding the Preparation of Reserves and Resource Information

Sproule International Limited ("Sproule"), 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.

The Company's Form 51-101F1 – Statement of Reserves Data and Other Oil and Gas Information for the fiscal year ended December 31, 2023, prepared by Sproule in accordance with the COGE Handbook and has an effective date of December 31, 2023 (the "2023 51-101F1") was filed on SEDAR+ on April 26, 2024. As per the requirements of Form 51-101F1, since Maria Conchita and Sinú-9 are both located in Colombia, the Company has disclosed its reserves in the 2023 51-101F1 on an aggregated basis. The reserves in the 2023 51-101F1, which are attributed to Sinú-9 are based on the Sinú-9 Report (as defined below) and the reserves in the 2023 51-101F1, which are attributed to Maria Conchita are based on the Maria Conchita Report (as defined below). The Company uses natural gas liquids and conventional natural gas as the two product types to report the Company's reserves.

The report entitled "Evaluation of the P&NG Reserves and Resources of NG Energy International in the Sinú-9 Block, Colombia" (the "Sinú-9 Report") was prepared by Sproule with an effective date of December 31, 2023 and a preparation date of December 21, 2023. Sinú-9 is located in the Department of Córdoba, Colombia. The Company's working interest in Sinú-9 is 72%, subject to payment of ANH sliding scale royalties. Reserves and resources attributed to the Hechizo, Brujo, Magico, Mago, Hechicero, Encanto, Milagroso, Porquero, Embrujo, Ensalmo and Sortilegio zones have been included in the Sinú-9 Report.

The report entitled "Evaluation of the P&NG Reserves and Resources of NG Energy International in the Maria Conchita Block, Colombia" (the "Maria Conchita Report") was prepared by Sproule with an effective date of December 31, 2023 and a preparation date of December 20, 2023. The Company holds an 80% working interest in Maria Conchita, which is located in the Department of La Guajira, Colombia. Reserves and resources attributed to the H1, H1A, H1A1, H1B, H2, H2B, H3, H4 and LM2 zones have been included in the Maria Conchita Report.

For additional information regarding the Sinú-9 Report, the Maria Conchita Report and the reserves information contained in this news release please see the 2023 51-101F1 filed on SEDAR+ on April 26, 2024, and the Company's news release dated December 27, 2023 entitled "NG Energy Announces 551% YOY Increase to 3P Reserves".

Caution Respecting Reserves Information

The determination of oil and natural gas reserves involves the preparation of estimates that have an inherent degree of associated uncertainty. Categories of Proved, Probable and Possible reserves have been established to reflect the level of these uncertainties and to provide an indication of the probability of recovery. The estimation and classification of reserves requires the application of professional judgement combined with geological and engineering knowledge to assess whether or not specific reserves classification criteria have been satisfied. Knowledge of concepts including uncertainty and risk, probability and statistics, and deterministic and probabilistic estimation methods is required to properly use and apply reserves definitions.

The recovery and reserve estimates of natural gas liquids and natural gas reserves provided herein are estimates only. Actual reserves may be greater than or less than the estimates provided herein. The estimated future net revenue from the production of the disclosed natural gas reserves does not represent the fair market value of these reserves.

Information Regarding Reserves

Reserves are estimated remaining quantities of commercially recoverable oil, natural gas and related substances anticipated to be recoverable from known accumulations, as of a given date, based on the analysis of drilling, geological, geophysical and engineering data; the use of established technology; and specified economic conditions, which are generally accepted as being reasonable. Reserves are further classified according to the level of certainty associated with the estimates and may be subclassified based on development and production status.

"Proved reserves" are those reserves that can be estimated with a high degree of certainty to be recoverable. It is likely that the actual remaining quantities recovered will exceed the estimated Proved reserves.

"Probable reserves" are those additional reserves that are less certain to be recovered than Proved reserves. It is equally likely that the actual remaining quantities recovered will be greater or less than the sum of the estimated Proved plus Probable reserves.

"Possible reserves" are those additional reserves that are less certain to be recovered than Probable reserves. It is unlikely that the actual remaining quantities recovered will exceed the sum of the estimated Proved plus Probable plus Possible reserves. There is a 10% probability that the quantities actually recovered will equal or exceed the sum of Proved plus Probable plus Possible reserves.

The qualitative certainty levels referred to in the definitions above are applicable to "individual reserves entities" (which refers to the lowest level at which reserves calculations are performed) and to "reported reserves" (which refers to the highest-level sum of individual entity estimates for which reserves estimates are presented). Reported reserves should target the following levels of certainty under a specific set of economic conditions:

• at least a 90% probability that the quantities actually recovered will equal or exceed the estimated Proved reserves; and
• at least a 50% probability that the quantities actually recovered will equal or exceed the sum of estimated Proved plus Probable reserves.

A qualitative measure of the certainty levels pertaining to estimates prepared for the various reserves categories is desirable to provide a clearer understanding of the associated risks and uncertainties. However, the majority of reserves estimates will be prepared using deterministic methods that do not provide a mathematically derived quantitative measure of probability. In principle, there should be no difference between estimates prepared using probabilistic or deterministic methods.

Each of the reserve categories (Proved and Probable) may be divided into developed and undeveloped categories as follows:

"Developed Producing reserves" are those reserves that are expected to be recovered from completion intervals open at the time of the estimate. These reserves may be currently producing or, if shut-in, they must have previously been on production, and the date of resumption of production must be known with reasonable certainty.

"Developed Non-Producing reserves" are those reserves that either have not been on production, or have previously been on production, but are shut-in, and the date of resumption of production is unknown.

"Undeveloped reserves" are those reserves expected to be recovered from known accumulations where a significant expenditure (e.g., when compared to the cost of drilling a well) is required to render them capable of production. They must fully meet the requirements of the reserves classification (Proved, Probable and Possible) to which they are assigned and expected to be developed within a limited time.

In multi-well pools it may be appropriate to allocate total pool reserves between the developed and undeveloped subclasses or to subdivide the developed reserves for the pool between developed producing and developed nonproducing. This allocation should be based on the estimator's assessment as to the reserves that will be recovered from specific wells, facilities and completion intervals in the pool and their respective development and production status.

Estimates of reserves and future net revenue for individual properties may not reflect the same confidence level as estimates of reserves and future net revenue for all properties, due to the effects of aggregation. Additionally, all estimates of future net revenue, whether calculated without discount or using a discount rate, do not represent fair market value.

SOURCE NG Energy International Corp.

For further information: NG Energy International Corp., Brian Paes-Braga, Chairman & CEO, Jorge Fonseca, CFO, Tel: [phone]