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NG ENERGY ANNOUNCES FILING OF Q1 2026 FINANCIAL RESULTS

NG Energy Confirms Revenue Surge and Capacity Constraints as M&P Transaction Cash Flow Validates Growth Thesis

By The Northwire Desk — AI Analysis May 14, 2026 · 07:00 GASX · 1.79 NG Energy International Corp.

Executive Summary

Financial Performance: Q1 2026 revenues reached US$9.5 million, a 48% year-over-year increase compared to US$6.4 million in Q1 2025.
Production Milestones: Sinú-9 gross production hit the technical pipeline capacity limit of 31.5 MMcf/d following the Hechicero-1X well completion. Net production averaged 12,413 Mcf/d (8,227 from Maria Conchita; 4,186 from Sinú-9).
Drilling Progress: Aruchara-5 at Maria Conchita reached total depth with positive results across all target zones. Magico-2X at Sinú-9 is currently targeted by the drilling rig as part of a six-well 2026 program.
Balance Sheet & Liquidity: Cash balance stands at US$11.95 million as of March 31, 2026. Macquarie credit facility outstanding principal remains at US$23.0 million.
Transaction Proceeds: Sinú-9 transaction with Maurel & Prom (M&P) closed in January for US$150 million. US$87.5 million received through March 31, 2026; US$31.1 million received post-quarter; US$30 million due in two equal instalments in June and July 2026.
Infrastructure: Sinú-9 pipeline capacity expansion expected to reach 40 MMcf/d gross by June 2026, with potential for up to 90 MMcf/d gross by year-end pending INFRAES agreements. Maria Conchita infrastructure currently at 30 MMcf/d gross.
Corporate Updates: Company graduated to the Toronto Stock Exchange (TSX) on April 30, 2026. Intention announced to apply for a normal course issuer bid (NCIB).

Material Impact

Validation of Previous Catalysts: The Q1 results confirm the positive trajectory established by the January transaction closing and April discovery news. Revenue growth aligns with management guidance provided in prior quarters, indicating no surprises on the top line.
Capacity Constraint Risk: Reaching the technical limit of current pipeline capacity (31.5 MMcf/d) at Sinú-9 is a double-edged sword. While it validates production success, it caps immediate revenue growth until infrastructure expansion occurs in June/July 2026. This creates a short-term ceiling on cash flow generation despite high realized prices ($8.50/Mcf).
Liquidity Position: The cash balance of US$11.95 million is sufficient to cover near-term operations but remains tight relative to the US$23.0 million debt obligation and upcoming M&P installment payments (US$30M due June/July 2026).
TSX Graduation Impact: The move from TSXV to TSX improves liquidity and investor access, which is positive for valuation multiples but often triggers initial profit-taking or volatility as seen in the price action around April 30.
Overall Materiality: The news is positive but largely expected given the January and April announcements. It serves as a confirmation of execution rather than a new strategic pivot. Therefore, it does not qualify as "Material - Positive" in terms of unexpected market-moving information, but rather validates the existing bullish thesis.

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Company Overview

Company: NG Energy International Corp. is an oil and gas exploration and production company focused on Colombia.
Flagship Projects:
- Sinú-9 Block: Major growth engine with 39% non-operating working interest (Maurel & Prom operates 61%). Recently achieved significant discovery at Hechicero-1X with high initial flow rates (26.4 MMcf/d).
- Maria Conchita Block: Mature production asset with 80% working interest. Production stabilized after mechanical obstruction resolution in December 2025, currently producing ~8,227 Mcf/d net.
Development Status: Currently executing a six-well drilling program at Sinú-9 and one well at Maria Conchita for fiscal year 2026. Infrastructure expansion is underway to support higher throughput.

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