Mr. Brian Paes-Braga reports

NG ENERGY PROVIDES CORPORATE AND OPERATIONAL UPDATE

NG Energy International Corp. has provided an update on its recent operational activities as well as its previously announced transaction with Etablissements Maurel & Prom SA (M&P).

Operational update

Sinu-9 block

At Sinu-9, the company is pleased to announce the commissioning of the mobile plant on its Brujo-1X platform. The mobile plant is now successfully installed, commissioning is advancing and the company has received the necessary approvals from Promigas SA ESP to begin selling gas. It has total current processing and dew point handling capacity of 12 million cubic feet per day, with room for expansion. Additionally, the company continues to work through the mobilization and construction of the additional dew point handling equipment at its central processing facility 1 (CPF-1), with commissioning scheduled during Q2 2025. The dew point handling equipment will have total capacity of 50 million cubic feet per day; however, the CPF-1 will be limited by compression and transportation capacity to 30 million cubic feet per day in the near term. Following installation of the dew point handling equipment at the CPF-1 and including the operating mobile plant, the company expects to reach total processing and compression capacity of 42 million cubic feet per day, with room for expansion.

Maria Conchita

At Maria Conchita, the company is pleased to announce that it continues to transition its compression system and has begun the civil work for the expansion of its processing and compression equipment to increase total production capacity to 28 million cubic feet per day. As previously indicated in the company's news release dated Nov. 26, 2024, production at Maria Conchita has been lower than expected in recent months due to compressor challenges and, more recently, downhole obstruction issues from a well servicing tool lodged and blocking the lower zone (H1) in Aruchara-3 as the company undertook a normal-course workover to optimize flow from the well. As a result, gross natural gas sales at Maria Conchita averaged 10.4 million cubic feet per day for the first two months of 2025. In response to these challenges, the company has initiated the following activities:

• The transition of the company's compressor system operating and maintenance contract from a third party to the facility owner, which has subsequently acquired a 10-million-cubic-foot-per-day compressor model of the type that has a strong operating history at Maria Conchita;
• The transfer, installation and commissioning of two compressors with capacities of 10 million cubic feet per day and six million cubic feet per day, respectively;
• Various other expansion activities, including the procurement of another 10-million-cubic-foot-per-day compressor, TEG (triethylene glycol) electrical pumps with variable frequencies and control valves for higher production rates;
• A workover campaign of the Aruchara-1 and Aruchara-3 wells to enhance the flow of natural gas from the H1 and H2 zones.

The company is also pleased to announce that it has acquired the necessary land for the flow-line right-of-way and new platform at Maria Conchita, which will allow the company to drill its next target, the Aruchara-4 well, and the company is in the process of completing the environmental and civil work with the expectation that it will spud the well in late Q2 2025. The company anticipates reaching production volumes greater than 25 million cubic feet per day at Maria Conchita upon tie-in of the Aruchara-4 well, completion of the workover campaign on the producing wells and the completion of the facility expansion in Q3 2025.

Colombia continues to experience rising prices for natural gas as the country becomes increasingly dependent on natural gas imports. Since 2016, liquefied natural gas has been imported to Colombia to fuel power plants along the Caribbean coast; however, given that Colombia is now experiencing a growing structural shortage, gas distributors are being forced to fulfill demand from liquefied natural gas. The Gestor del Mercado de Gas Natural de Colombia's daily posted natural gas spot prices have been greater than $15 (U.S.) per million British thermal units since the beginning of February, 2025.

Transaction update

Further to the company's news release dated Feb. 10, 2025, the company is pleased to announce that it has received the initial payment of $20-million (U.S.) from M&P for the sale of a 40-per-cent operating working interest in Sinu-9 for total cash consideration of $150-million (U.S.). The remaining $130-million (U.S.) will be paid to the company upon completion, which remains subject to the satisfaction of all conditions precedent outlined in the definitive asset purchase agreement for the transaction. The application for M&P to become operator on the block has been submitted to the Agencia Nacional de Hidrocarburos and the transaction is expected to close during Q2 2025.

"We are pleased with the progress made towards not only closing this transformational transaction with M&P, but the set-up of the joint venture and continued work by both organizations on the development and execution plan to be carried out following the close of the transaction," said Brian Paes-Braga, chief executive officer and chairman. "Our business continues to be unaffected by Brent crude price weakness or any of the ongoing international trade tensions as we supply a cleaner fuel domestically for Colombia through long-term take-or-pays. Although we too have been disappointed with some of our operational challenges this past year, we are confident that the worst of our start-up challenges are behind us and that 2025 will be a foundational year for our company as we successfully and safely ramp up production at both Maria Conchita and Sinu-9."

Normal course issuer bid

The company is pleased to announce that it has filed with the TSX Venture Exchange a notice of intention to make a normal course issuer bid (NCIB) to purchase for cancellation up to 17,545,859 common shares of the company, which represents up to 10 per cent of the company's public float, over a 12-month period. As of the date of this news release, the company has 257,774,340 common shares issued and outstanding.

The company expects the NCIB to commence on June 1, 2025, subject to acceptance by the TSX-V, and as such, the NCIB will terminate on May 31, 2026, or such earlier date on which purchases under the NCIB have been completed. Purchases of common shares under the NCIB will be made through the facilities of the TSX-V in accordance with TSX-V requirements. During the past 12 months, the company has not purchased any common shares under a normal course issuer bid through the facilities of the TSX-V.

Common shares acquired by the company under the NCIB will be purchased at the market price at the time of purchase and will be purchased on behalf of the company by Haywood Securities Inc., the company's broker in connection with the NCIB. During the bid term, the aggregate total of all purchases made by the company in the preceding 30 days will not exceed 2 per cent of the total issued and outstanding common shares at the time the purchases are made.

The company is pursuing the NCIB as it believes that, from time to time, its common shares may trade in price ranges that do not fully reflect their value; therefore, the company's board of directors has determined that acquiring such common shares would be an attractive and desirable use of the company's available funds in light of the potential benefits to remaining shareholders.

About NG Energy International Corp. NG Energy International 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. NG Energy's team has extensive technical and capital markets expertise with a proven 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, structurally short Colombian marketplace (spot price of greater than $15 (U.S.) per million British thermal unit in March, 2025). The company is pursuing triple-digit gross production growth over the next two to three years toward a gross production goal of 200 million cubic feet per day and has seen a 551-per-cent year-over-year increase in 3P reserves, a 314-per-cent year-over-year increase in 2P reserves and a 241-per-cent increase in 1P reserves. To date, over $100-million (U.S.) has been invested in the exploration and development of Sinu-9 and Maria Conchita with significant contributions from insiders, who currently own approximately 32 per cent of the company. On Feb. 10, 2025, the company announced the sale of a 40-per-cent operating working interest in Sinu-9 to Establissements Maurel & Prom for $150-million (U.S.).

We seek Safe Harbor.