NG ENERGY ANNOUNCES ANH APPROVAL FOR SINU-9 TRANSACTIONS

Executive Summary

• NG Energy International Corp. received Colombian ANH approval for the sale of a 40% working interest and operatorship in the Sinú‑9 Block to Maurel & Prom for US$150 million, and for acquiring an additional 28% working interest from minority partners.
• All required regulatory approvals are now in place; the company will proceed to closing, after which it will hold a 39% non‑operating working interest while Maurel & Prom holds 61% operating interest.
• The approval removes the final major hurdle, enabling NG Energy to launch a six‑well drilling campaign at Sinú‑9 in the coming year.

Key Details

• Transaction Overview:
• Sale of 40% working interest and operatorship to Maurel & Prom – cash consideration US$150 million (the “M&P Transaction”).
• Concurrent acquisition of a collective 28% working interest from minority partners (the “Minority Partner Transaction”).
• Regulatory Status: ANH approval received; all other regulatory approvals secured; parties to satisfy customary closing conditions imminently.
• Post‑Closing Ownership Structure: NG Energy – 39% non‑operating working interest; Maurel & Prom – 61% operating working interest in the Sinú‑9 Block.
• Strategic Impact: Enables a six‑well drilling program with Maurel & Prom, positioning NG Energy for accelerated development and production growth at Sinú‑9.
• Financial Consideration: Total cash outflow to minority partners not disclosed; primary cash inflow of US$150 million from the sale to Maurel & Prom.

Notable Quotes

“With ANH Approval received, the last major hurdle to complete the Sinú‑9 Transactions has been met… we look forward to a pivotal year of development at Sinú‑9 as we launch a six‑well drilling campaign with our new operating partner Maurel & Prom.” – Jorge Fonseca, Chief Executive Officer

Materiality Assessment: Material – Positive (regulatory clearance for a $150 M transaction and imminent commencement of a multi‑well development program).