NG ENERGY ANNOUNCES FILING OF Q3 FINANCIAL RESULTS
Canada NewsWire
CALGARY, AB, Nov. 26, 2024
CALGARY, AB, Nov. 26, 2024 /CNW/ - NG Energy International Corp. ("NGE" or the "Company") (TSXV: GASX) (OTCQX: GASXF) is pleased to announce that it has filed its financial results for the three and nine months ended September 30, 2024. The Company's consolidated financial statements and management's discussion and analysis for the three and nine months ended September 30, 2024 are available on the Company's website (www.ngenergyintl.com) and profile on SEDAR+ (www.sedarplus.ca).
Financial Highlights:
-- Quarterly revenue of US$9.1 million versus US$2.5 million in Q3 2023, a
270% increase YoY, and YTD revenue of US$29.5 million;
-- Quarterly cash flow from operations of US$6.3 million versus US$(1.1)
million in Q3 2023, and YTD cash flow from operations of US$16.2 million;
-- Quarterly funds flow from operations ("FFO") of US$3.7 million versus
US$(1.8) million in Q3 2023, and YTD FFO of US$13.7 million;
-- Record realized average natural gas pricing during the quarter of
US$8.07/Mcf;
-- Operating netback of US$5.45/Mcf versus US$1.92/Mcf in Q3 2023; and
-- Average gross production of 15.0 MMcf/d (12.0 MMcf/d net).
Operational Highlights:
-- Successful completion of the Brujo-1x well in 3 zones;
-- Successful completion of the construction of the Phase 1 28.3-kilometre
pipeline connecting the Sinu-9 Block to Promigas' national pipeline
transportation network at the Jobo Station;
-- Began commissioning of the pipeline to between 1,100 -- 1,400 PSI, which
has subsequently been completed;
-- Began commissioning of the early production phase of the Central
Processing Facility 1 (CPF-1), which has subsequently been completed; and
-- Signed a Memorandum of Understanding (the "MOU") with infrastructure
partner, INFRAES, for the completion of up to an additional 76 MMcf/d of
pipeline capacity from the Sinu-9 Block, which is anticipated to be
completed over the course of 15 months and constructed in two stages,
following the execution of a definitive agreement. The MOU will
accelerate the Sinu-9 Block development plan, which will help address
Colombia's domestic natural gas supply shortage.
Corporate Highlights:
-- Appointment of Mr. Don Sewell as President;
-- Appointment of Mr. Leonardo Chavez as Vice President of Operations; and
-- Successfully completed a C$30 million equity financing, which welcomed
several premier institutions as shareholders, as well as greater
commitments from existing strategic partners and insiders. The net
proceeds will be used to accelerate the next phase of the Company's
growth.
Brian Paes-Braga, Chairman and Chief Executive Officer, commented, "This quarter has seen significant progress for our company across all aspects of the business, highlighted by the successful completion of crucial works to Sinu-9 Phase 1 infrastructure, allowing us to bring the field into production subsequent to the end of the quarter. I want to again extend my gratitude to our operational and technical teams, our midstream partners, our working interest partners, as well as all our consultants and the communities in which we work that have been such key stakeholders throughout our development activities this year. We are excited about ramping up production at Sinu-9 and the next phase of expansion, as our company and partners continue to add much-needed capacity and supply to the Colombian marketplace which continues to experience a major deficit. The addition of key management and new employees has also led to better execution, a growing culture of excellence and has been the start of foundational building blocks in an effort to achieve all our ambitious operational goals as we look forward into continued industry leading growth for our critical domestic energy business."
The Company experienced a slight decrease in average daily production at Maria Conchita over the quarter due to temporary compressor issues and downtime with its contract partner. The Company is actively implementing a plan to reconfigure the compressor setup to enhance operational efficiency and mitigate risks, ensuring a reliable backup system. This work is ongoing and expected to be completed by the second week of December. In parallel, the Company is implementing expansionary compression plans in preparation for the drilling of the Aruchara-4 well, scheduled for the first quarter of 2025, which would see total capacity increase to up to 25 MMcf/d. Lastly, the Company is currently conducting a workover of the Aruchara-1 well, cleaning up 285 feet of sand using coiled tubing to better expose the 3 perforated zones to the wellbore, with the goal of enhancing productivity.
Brian Paes-Braga continued, "At Maria Conchita, we experienced intermittent downtime as a result of temporary compressor issues. Higher gas prices have offset some of these short-term challenges, leading to continued strong financial performance. These issues are actively being resolved and we look forward to the much anticipated drilling of Aruchara-4, which will be offsetting the extraordinary 65.2 MMcf/d test at Aruchara-3 last year. The re-scoping of Maria Conchita continues to be a focus for our technical team as we better interpret the over 1,000-foot gas pay zone experienced in drilling Aruchara-3 last year."
"Lastly, I want to welcome and thank our new institutional shareholders that supported us in our September equity raise. This was an opportunity for NGE to welcome long-term investors to our shareholder registry, something that will be a core focus into the end of the year and for 2025 as we continue to institutionalize the business and shareholder list."
Jorge Fonseca, Chief Financial Officer, commented, "Looking ahead to Q4, we are excited to see the commencement of production and the ramp-up from Sinu-9 and how this affects our financial performance for the first time. This milestone marks a significant transition for our company, as we move towards a profitable business and have successfully brought online our second gas field, resulting in regional diversification as well as doubling the number of wells in production, resulting in continued de-risking of the business. The successful completion of infrastructure at Sinu-9 provides a solid foundation for hyper growth, enabling us to scale up production while enhancing our financial and operational performance. We are committed to delivering long-term value for our shareholders as we accelerate our operations and solidify our position in the Colombian energy market."
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 the Americas, 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 a production increase of >150% exiting 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 32% of the Company. 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 completion of the pipeline capacity increase at the Sinu-9 Block, the timeline for completion of the compressor back-up system at the Maria Conchita Block and the drilling of the Aruchara-4 well. 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.
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