-- Q2 production and financial highlights: Q2 2026 natural gas and NGL sales
of US$10.8 million, a 14% increase over Q1 2026. YTD 2026 sales of
US$20.3 million, a 24% increase year-over-year.
-- Production growth since quarter-end: Combined current gross production
across both blocks during the first week of August 2026 was 44.48 MMcf/d
(24.21 MMcf/d net to NGE).
-- Sinú-9 production approximately doubled since the quarter: Gross
production at Sinú-9 stood at approximately 27.74 MMcf/d during the
first week of August 2026 (10.81 MMcf/d net to NGE), approximately double
the block's Q2 2026 average and at the technical limit of existing export
capacity.
-- Four wells remaining in current Sinú-9 drill program: Two wells are
scheduled for the balance of 2026, the first being Encantado, targeted on
stream in November 2026.
-- Export capacity at Sinú-9 set to increase to 40--45 MMcf/d:
Commissioning of the first INFRAES pipeline loop to Jobo is underway and
is expected to be completed within the coming weeks, increasing export
capacity at Sinú-9 from 30 MMcf/d to 40--45 MMcf/d (15.6--17.6
MMcf/d net to NGE).
-- Maria Conchita development advancing: Aruchara-5 was tied into the
central processing facility during Q2 2026 and the Aruchara-1 workover
was completed on July 15, 2026. Aruchara-6 was spudded on August 3, 2026
and is currently being drilled.
-- Balance sheet transformation complete: The final US$15 million instalment
from Maurel & Prom was received subsequent to quarter-end, completing
collection of the full US$150 million consideration. The Company received
a further US$20 million (C$26 million) from July 2026 Warrant proceeds.
-- Reduced cost of capital: Amendment No. 7 to the Macquarie credit
agreement reduced the applicable margin rate from 8.5% to 7.5%, with
further reductions available on achievement of production and reserves
thresholds with US$23 million remaining.
CALGARY, AB, Aug. 13, 2026 /PRNewswire/ -- NG Energy International Corp. ("NGE" or the "Company") (TSX: GASX) (OTCQX: GASXF) is pleased to announce that it has filed its financial results for the three and six months ended June 30, 2026. The Company's interim condensed consolidated financial statements and management's discussion and analysis for the three and six months ended June 30, 2026, are available on the Company's website (www.ngenergyintl.com) and profile on SEDAR+ (www.sedarplus.ca).
Q2 2026 Highlights
-- Revenue: Q2 2026 natural gas and NGL sales of US$10.8 million, a 14%
increase over Q1 2026 sales of US$9.5 million and an 8% increase over Q2
2025 sales of US$10.0 million. YTD 2026 natural gas and NGL sales of
US$20.3 million versus US$16.4 million in YTD 2025, a 24% increase
year-over-year.
-- Pricing: Blended realized natural gas price of US$8.35/Mcf in Q2 2026
versus US$7.20/Mcf in Q2 2025, a 16% increase year-over-year, reflecting
the Company's contracted pricing in a structurally favourable Colombian
natural gas pricing environment. Maria Conchita realized a natural gas
price of US$9.20/Mcf under long-term offtake agreements, with new
incremental volumes expected to be sold at US$11.50/Mcf in the Colombian
spot market. Sinú-9 realized a natural gas price of US$7.02/Mcf
under contracted offtake agreements up to 25 MMcf/d gross, with volumes
above this threshold expected to be sold at US$13.00/Mcf into the
Colombian spot market as production scales through the balance of the
ongoing drilling campaign.
-- Net Production: Combined average daily net production for sale of 14.222
Mcf/d in Q2 2026, a 15% increase over Q1 2026 net production for sale of
12.413 Mcf/d, comprising 8.654 Mcf/d net from Maria Conchita at the
Company's 80% working interest and 5.568 Mcf/d net from Sinú-9 at
the Company's 39% non-operating working interest. During the first week
of August 2026, gross production at Sinú-9 stood at approximately
27.74 MMcf/d (10.81 MMcf/d net to NGE), approximately double the block's
Q2 2026 average, and at the technical limit of existing export capacity,
with four firm wells remaining to be drilled under the current six well
drilling campaign. Following completion of the Aruchara-1 workover, gross
production at Maria Conchita has increased to 16.7 MMcf/d (13.3 MMcf/d
net to NGE). Combined current gross production across both blocks is
44.48 MMcf/d (24.21 MMcf/d net to NGE).
-- Take-Away Capacity: Export capacity at Sinú-9 is currently 30 MMcf/d,
representing net entitlement (39%) of 11.7 MMcf/d to the Company.
Commissioning of the first 18-kilometre loop of the pipeline from the
Jobo connection point, constructed by the Company's infrastructure
partner INFRAES, is underway and is expected to be completed within the
coming weeks, which will increase export capacity at Sinú-9 to
40--45 MMcf/d and net entitlement (39%) to the Company to 15.6--17.6
MMcf/d. With gross production at Sinú-9 currently at the technical
limit of existing export capacity, completion of the loop is expected to
unlock capacity for the additional volumes targeted from the remaining
wells in the drilling campaign. At Maria Conchita, the Company has 30
MMcf/d (24 MMcf/d net to NGE 80%) of infrastructure capacity in place.
-- Capital Investment: Capital expenditures of US$18.1 million in Q2 2026
and US$24.7 million YTD 2026, directed principally to the Sinú-9
drilling campaign and to the Aruchara-5 well at Maria Conchita. The
Company's 2026 capital program is funded from cash on hand and proceeds
received from the Company's transaction with Etablissements Maurel & Prom
S.A. ("Maurel & Prom").
-- Liquidity: Cash of US$33.2 million at June 30, 2026, compared to US$11.95
million at March 31, 2026, with US$15 million of consideration from the
Company's transaction with Maurel & Prom received subsequent to
quarter-end, completing receipt of the full US$150 million consideration.
The Company also received aggregate proceeds of C$26.5 million from the
exercise of the July 2026 Warrants (as defined below), with C$21 million
received subsequent to quarter-end.
-- Debt: The outstanding principal on the Macquarie credit facility is
US$23.0 million, with the next scheduled principal repayment of US$3.0
million due in December 2026 and the facility maturing in December 2028.
The Company was in compliance with all financial covenants as at June 30,
2026.
Subsequent to Quarter-End
-- The drilling campaign at Sinú-9 operated by Maurel & Prom is
continuing and comprises six firm wells and two contingent wells, of
which four firm wells remain to be drilled. Two are scheduled to be
drilled during the balance of 2026, the first being Encantado, for which
well pad construction has commenced and the drilling rig is being
mobilised, targeted to come on stream in November 2026. Magico-2X,
drilled between June 26, 2026 and the end of July 2026, encountered gas
intervals within the target formation that did not exhibit sufficient
thickness to support commercial production, and the well was plugged and
abandoned on July 30, 2026. The data acquired will be incorporated into
the geological characterisation of the licence to optimise the
continuation of the drilling campaign.
-- Aruchara-6, the Company's next development well at Maria Conchita, was
spudded on August 3, 2026 and is currently being drilled, targeting the
Jimol formation (H1 and H2) with additional upside in the H3, H4 and H5
fractured zones, to a planned total depth of 9,124 feet. Completion is
expected in September 2026.
-- The Aruchara-1 workover and recompletion at Maria Conchita was completed
on July 15, 2026, restoring well integrity, enabling the evaluation of
new productive intervals and returning the well to production at
increased rates.
-- The Company received aggregate proceeds of C$26,509,500 from the exercise
of 29,455,000 common share purchase warrants issued on July 31, 2023 (the
"July 2026 Warrants") at an exercise price of C$0.90 each, of which
23,266,000 warrants were exercised subsequent to June 30, 2026. All
unexercised July 2026 Warrants expired on July 31, 2026 in accordance
with their terms. As of the date of this news release, the Company has
296,334,964 common shares and 65,930,943 common share purchase warrants
issued and outstanding.
-- On July 29, 2026, the Company executed Amendment No. 7 to its credit and
guarantee agreement with Macquarie, reducing the applicable margin rate
from 8.5% to 7.5%, with further reductions to as low as 5.5% available
upon achievement of specified natural gas production and proven reserves
thresholds. The amendment also eliminated the Colombian trust structure,
streamlined certain administrative requirements and reduced
administrative fees, and permits the Company to enter into unsecured
letters of credit with other banks and to undertake unsecured hedging.
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