•  Expected 2024 capital expenditures of US$23 - US$27 million, which includes:
  • Sinu-9 Block - Phase I: Completion of infrastructure projects on schedule for H1, 2024;
  • Drilling of the Hechicero-1X exploration well in the Sinu-9 Block in Q4 from the same drill pad as the Brujo-1X well (783 feet of net gas pay, which tested 51 MMcf/d); and
  • Production enhancing activities and geophysics study of newly encountered fractured zones at the Maria Conchita Block as part of key re-scoping initiative following up on the 65.2 MMcf/d test at the Aruchara-3 well
• Expected average gross production in 2024 of 25 - 35 MMcf/d with the goal of exceeding 45 MMcf/d in gross production by the end of 2024
• Projected cash flow of US$20 - US$25 million in 2024

TORONTO, April 2, 2024 /CNW/ - NG Energy International Corp. ("NGE" or the "Company") (TSXV: GASX) (OTCQX: GASXF) is pleased to announce its capital budget for the fiscal year ended December 31, 2024 (the "2024 Budget") and provide its production expectations for 2024. The 2024 Budget is designed to progress the business towards its near-term and long-term strategic objectives by achieving prolific growth in production and reserves and resources, while maintaining a healthy balance sheet and achieving top-tier returns for shareholders.

Key Highlights

2024 Budget – The Foundation for Profitable Production Growth

• Sinu-9 Block:
  • completion of ongoing Phase I infrastructure projects resulting in processing and transportation capacity of 30 MMcf/d by the end of Q2 2024 and an additional 10 MMcf/d by year-end 2024;
  • completion and tie-in of the Brujo-1X well in Q2 2024;
  • tie-in of the Magico-1X well in Q2 2024; and
  • drilling of the Hechicero-1X well in Q4 2024.
• Maria Conchita Block: Completion of production enhancing activities, as well as a geophysics study on the H3/H4 fractured zones and an evaluation of various production growth development programs.
• Social Initiatives: Continued commitment to supporting the communities in which the Company operates.

Message to Shareholders

The Company believes that the 2024 Budget will allow it to execute its strategic plan and achieve profitable production growth of over 150% (exit-to-exit), while growing the Company's Proved + Probable reserves to achieve our corporate goal of profitably acquiring a 20% market share in the Colombian natural gas market. The Company believes that through the continued (and ever growing) support of its financing, infrastructure and commercial partners and a high and low volatility natural gas pricing environment, it is well-positioned to continue to grow its market share in the Colombian natural gas market, which is in dire need of significant new investment in both natural gas production and reserves. The 2024 Budget is a foundational step for the Company in achieving sustainable growth and future yield, while driving top-tier returns for shareholders and achieving the Company's long-term strategic objectives.

Brian Paes-Braga, CEO of NGE, commented: "NGE's 2024 Budget prioritizes our commitment to maintaining a healthy balance sheet while achieving top-tier year-over-year production growth and continued growth of reserves. After laying significant groundwork in both development and production in 2023, achieving over 200% production growth and over 500% in reserve growth, we look forward to another year of triple digit production growth in 2024 as we bring on-line the much-anticipated Phase 1 of our Company's flagship Sinu-9 Block. Our early exploration success at Sinu-9 has demonstrated the field's potential to be one of the most critical sources of onshore natural gas supply in Colombia; in this regard, we are very excited to resume upstream drilling activities at Sinu-9 with the drilling of the Hechicero-1X exploration well included in our 2024 Budget. At Maria Conchita, the Company is focused on the necessary activities related to maintaining and increasing our production, including a workover program at the Aruchara-1 well and the analysis of production facilities and marketing routes for a potential meaningful expansion. We are also very encouraged by the discovery of the new H3/H4 zones, which contributed 570 feet of net gas pay during the successful drilling of the Aruchara-3 development well in 2023 and we look forward to the findings of a geophysics study and the analysis of the fractured areas in these zones in 2024."

About NG Energy International Corp.  

NG Energy International Corp. is a natural gas exploration and production company with operations in Colombia. The Company is on a mission to discover, delineate and develop meaningful natural gas fields in developing counties to support energy transition and economic growth. In Colombia, the Company is executing on this mission with a rapidly growing production base that is being delivered to the premium priced Colombian market. NGE's team has extensive technical expertise and a proven track record of building companies and creating value in South America. 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, the information contained in this news release regarding the Company's planned capital expenditures, the 2024 Budget, the growth of the Company's production base, the drilling, completion or tie-in of any wells in the Sinu-9 Block, the completion of any exploration activities or development programs in the Maria Conchita Block, the growth of the Company's Proved + Probable reserves, the potential of the Sinu-9 Block and the Company's market share in the Colombian natural gas market.  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 June 30, 2023, 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, volatility of pricing for oil and natural gas, changing investor sentiment about the oil and natural gas industry, competition in the markets where the Company operates, any delays in production, marketing and transportation of natural gas, drilling costs and availability of equipment, regulatory approval risks and environmental 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:

SOURCE NG Energy International Corp.

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