Mr. Serafino Iacono reports

NG ENERGY ANNOUNCES 551% YOY INCREASE TO 3P RESERVES

With its partners Olympo and Duemav in the Maria Conchita block and with Clean Energy and Oleum in the SN9 block, NG Energy International Corp. has increased reserves at both Maria Conchita and Sinu-9 as part of an updated independent analysis by Sproule International Ltd. The updated reserves and resources incorporate the recently drilled Aruchara-3 well at Maria Conchita which includes the newly encountered section in zone H4 in addition to zones H1 and H2 and finalized plans for construction of infrastructure at Sinu-9. All dollar amounts are in U.S. dollars.

Highlights

Sinu-9 block:

• Company gross proved (1P) reserves of 26.7 billion cubic feet (37 BCF project gross) of natural gas for before-tax net present value (10 per cent) of $22-million;
• Company gross proved plus probable (2P) reserves of 114.36 BCF (158.8 BCF project gross) of natural gas for before-tax NPV (10 per cent) of $150.3-million;
• Company gross proved plus probable plus possible (3P) reserves of 245.3 BCF (340.8 BCF project gross) of natural gas for before-tax NPV (10 per cent) of $331-million;
• Company gross unrisked best estimate contingent resources (development pending) of 130.2 BCF for before-tax NPV (10 per cent) of $78.5-million;
• Company gross unrisked best estimate prospective resources of 131 BCF for before-tax NPV (10 per cent) of $264.4-million.

Maria Conchita block:

• Company gross proved (1P) reserves of 25 BCF (31.3 BCF project gross) of natural gas and 50,000 barrels (63,000 bbl project gross) of condensate for before-tax NPV (10 per cent) of $75.4-million;
• Company gross proved plus probable (2P) reserves of 47.2 BCF (59 BCF project gross) of natural gas and 75,000 bbl (94,000 bbl project gross) of condensate for before-tax NPV (10 per cent) of $34.1-million;
• Company gross proved plus probable plus possible (3P) reserves of 59.5 BCF (74.3 BCF project gross) of natural gas and 94,000 bbl (117,000 bbl project gross) of condensate for before-tax NPV (10 per cent) of $135.8-million;
• Company gross unrisked best estimate contingent resources (development pending) of 65.6 BCF for before-tax NPV (10 per cent) of $69.9-million;
• Company gross unrisked best estimate prospective resources (prospects) of 53 BCF for before-tax NPV (10 per cent) of $36-million.

Serafino Iacono, chief executive officer of NG Energy, commented: "We are very pleased to have our two greatest accomplishments of the year reflected in our reserves and resources report. The report validates the incredible achievements by our team and our partners after encountering a new naturally fractured natural-gas-bearing section in the drilling of Aruchara-3 and finalizing contracts to build production infrastructure at Sinu-9. We look forward to continuing to grow these numbers in 2024 as we aim to achieve significant free cash flow by the end of next year."

Additional disclosure regarding Sinu-9 and Maria Conchita

Sinu-9

The report entitled "Evaluation of the P&NG Reserves and Resources of NG Energy International in the Sinu-9 Block, Colombia" was prepared by Sproule with an effective date of Dec. 31, 2023, and a preparation date of Dec. 21, 2023. The company's working interest in Sinu-9 is 72 per cent, 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 Sinu-9 report. Contingent resources for Sinu-9 are petroleum and natural gas classified as development pending and are attributed a chance of development of 80 per cent. The prospective resources assigned to the Brujo-Porquero, Hechicero-Porquero and Milagroso fields are subclassified as prospects and are attributed a chance of discovery of 58 to 60 per cent and a chance of development of 66 per cent. The prospective resources assigned to the Embrujo, Ensalmo and Sortilegio fields are subclassified as lead and are attributed a chance of discovery of 25 to 30 per cent and a chance of development of 66 per cent.

Total gas is planned to be produced through new and existing wellbores and a pipeline to a processing facility using established recovery technology.

The development plan for the reserves area located within Sinu-9 includes the completion of the Brujo-1X, as well as drilling a total of 12 wells; five in the Hechicero field, four in the Magico field and three in the Brujo field. Production will be processed through a dehydration and compression facility as well as a gas pipeline from Sinu-9 to Jobo station.

The development plan for the contingent resources area located within Sinu-9 includes the drilling of five locations for the low-estimate scenario, 12 locations for the best-estimate scenario and 18 locations for the high-estimate scenario. Production will be processed through new facilities to be built by the company. Due to the number of reservoirs identified in the area, the number of wells may change by category according to the uncertainty identified in the reservoir areas, since they are not completely concentric with respect to each other.

The development plan for the prospective resources area located within Sinu-9 includes the drilling of 13 locations. Production will be processed through new facilities to be built by the company. Due to the number of reservoirs identified in the area, the number of wells may change by category according to the uncertainty identified in the reservoir areas, since they are not completely concentric with respect to each other.

The natural gas resources were estimated based on the technically recoverable volume, budgeted operating and capital costs, and the terms of the fiscal regime. Forecasts of net revenue were prepared by predicting the annual production from the resources and product prices. Gas reserves and resources have only been assigned based on the gas contracts and the gas contract precedents expected to be in place at production start-up. There is no certainty it will be commercially viable to produce any portion of the contingent resources and there is no certainty that any portion of the prospective resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the resources.

In sum, the development forecast presented in the Sinu-9 report was based on a complete evaluation of the company's lands for the zones identified by the company to be prospective for economic development at the time of the Sinu-9 report. The development forecast represents full development of the lands for which reserves and resources could be assigned. Additional potential could exist within zones which were not identified by the company, within the scope of the Sinu-9 report.

Maria Conchita

The report entitled "Evaluation of the P&NG Reserves and Resources of NG Energy International in the Maria Conchita Block, Colombia" was prepared by Sproule with an effective date of Dec. 31, 2023, and a preparation date of Dec. 20, 2023. The company holds an 80-per-cent working interest in Maria Conchita. 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. Contingent resources for Maria Conchita are petroleum and natural gas classified as development pending and are attributed a chance of development of 0.73. The prospective resources for Maria Conchita are subclassified as prospect and are attributed a chance of discovery of 0.41 and chance of development of 0.73.

Total gas is planned to be produced through new and existing wellbores and a pipeline to a processing facility using established recovery technology.

The development plan for the reserves area located within Maria Conchita includes the production maintenance of Aruchara-1 and Aruchara-3, as well as the drilling of a total of five wells; two in the Aruchara field and three in the Tinka field on 425 acres spacing. Production will be processed through an existing facility.

The development plan for the contingent resources area located within Maria Conchita includes the drilling of a total of 10 wells; nine in the Aruchara field and one in the Tinka field on 425 acres spacing. Additionally, expansion of the existing facility is included to a total capacity of 60 million cubic feet per day for the best estimate scenario. Due to the number of reservoirs identified in the area, the number of wells may change by category according to the uncertainty identified in reservoir areas, since they are not completely centric with respect to each other.

The development plan for the prospective resources area located within Maria Conchita include the drilling of 10 wells on 425 acres spacing across the intervals of interest H2, H2B and H3.

The natural gas and condensate reserves and resources were estimated based on the technically recoverable volume, operating and capital costs, and the terms of the fiscal regime. Forecasts of net revenue were prepared by predicting the annual production from the reserves, resources and product prices. Gas reserves and resources have only been assigned based on the gas contracts and the gas contract precedents in effect as of date of the Maria Conchita report. There is no certainty it will be commercially viable to produce any portion of the contingent resources and there is no certainty that any portion of the prospective resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the resources.

In sum, the development forecast presented in the Maria Conchita report was based on a complete evaluation of the company's lands for the zones identified by the company to be prospective for economic development at the time of the Maria Conchita report. The development forecast represents full development of the lands for which reserves and resources could be assigned. Additional potential could exist within zones which were not identified by the company, within the scope of the Maria Conchita report.

With regard to the costs associated with achieving additional commercial production at Maria Conchita and Sinu-9, and the general timeline of the projects, please see the company's annual information form dated June 30, 2023, and its most recent management's discussion and analysis, both of which can be found on SEDAR+.

Sproule International, an independent qualified reserves and resources evaluator, has conducted the reserves and resource evaluation for Maria Conchita and Sinu-9 in accordance with the Canadian Oil and Gas Evaluation 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.

About NG Energy International Corp.

NG Energy International 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. NG Energy's team has extensive technical expertise and a proven record of building companies and creating value in South America.

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