Mr. Brian Paes-Braga reports

NG ENERGY PROVIDES BUDGET AND PRODUCTION GUIDANCE FOR 2024

NG Energy International Corp. has released its capital budget for the fiscal year ended Dec. 31, 2024, and provides its production expectations for 2024. The 2024 budget is designed to progress the business toward 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 
                                                     
Average gross 
production (MMcf/d)         25 to 35  
              
Gross exit 
production (MMcf/d)         >45 (150% growth y/y)

Cash flow from 
operations (1) (U.S.$ 
millions)                   20 to 25 
               
Total capital 
(U.S.$ millions)            23 to 27 
               
Number of exploration
wells                       1                      


  
1. Assumes the company's long-term natural gas 
offtake agreements in place and a spot natural 
gas price of $7 (U.S.)/million British thermal 
units.


  

2024 budget -- the foundation for profitable production growth

Sinu-9 block:  Completion of continuing phase I infrastructure projects resulting in processing and transportation capacity of 30 million cubic feet per day 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 per cent (exit-to-exit), while growing the company's proved and probable reserves to achieve its corporate goal of profitably acquiring a 20-per-cent 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, chief executive officer 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-per-cent production growth and over 500 per cent 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 record of building companies and creating value in South America.

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