NG Energy hits 40 MMcf/d at Sinu-9, Maria Conchita

Mr. Jorge Fonseca reports NG ENERGY ANNOUNCES THE COMPLETION OF THE ARUCHARA-4 ST-1 WELL AND MAJOR INFRASTRUCTURE ACHIEVEMENTS AT MARIA CONCHITA AND SINU-9 NG Energy International Corp. has released operational achievements at its Maria Conchita and Sinu-9 natural gas projects in Colombia, including the completion of the drilling of the Aruchara-4 ST-1 well at Maria Conchita and major infrastructure achievements at Maria Conchita and Sinu-9. These achievements mark significant progress in scaling production capacity, optimizing current assets and positioning the company for substantial growth in Colombia's energy market. The Aruchara-4 ST-1 well was successfully tied into the central processing facility (CPF) at Maria Conchita and is now producing up to 15.9 MMcf/d (million cubic feet per day) with significant wellhead pressure of 1,434 psi. With a minor modification to the compressor lines in the CPF, production could increase from 15.9 MMcf/d up to 19.8 MMcf/d while maintaining wellhead pressure above 650 psi. The new gas volumes are expected to be sold at prices greater than $11.00 (U.S.) per MMBtu (million British thermal units) with payback of the Aruchara-4 ST-1 well expected within three months. Based on the results from the completion of the Aruchara-4 ST-1 well, the company anticipates it will be cash flow positive in Q4 2025. The drilling rig is being moved to the Aruchara-3 well for recompletion, which the company anticipates will return the Aruchara-3 well to its full production capability by the end of November, 2025. Dew point handling equipment has been successfully installed at the main central processing facility (CPF-1) at Sinu-9 with 60 MMcf/d of processing capacity between the two plants now in place and room for further expansion. Steady state production at Sinu-9 has increased to 24.0 MMcf/d, which is being processed through the main CPF-1. The company and its joint venture partners target spudding the Hechicero-1X well at Sinu-9 at the end of November, 2025. The initial pipeline loop, which will increase transportation capacity to 40 to 45 MMcf/d at Sinu-9, is expected to be completed by the end of the year. The company has achieved gross production of 40 MMcf/d representing approximately 4.0 per cent of Colombia's domestic gas market. This achievement marks a significant production milestone for the company. Maria Conchita The Aruchara-4 ST-1 well has been successfully drilled, perforated and completed across five zones, and is now tied into the CPF. Initial production from the H1 and H2 zones has reached up to 15.9 MMcf/d with significant wellhead pressure of 1,434 psi. Following a minor modification to the CPF, management anticipates that the well capacity could increase to 19.8 MMcf/d with wellhead pressure of 650 psi. This minor modification to the CPF could also increase the absolute open flow to 20 MMcf/d or higher. Gas volumes in excess of those already sold under the company's existing contracts are expected to be sold into the Colombian marketplace at prices greater than $11.00 (U.S.) per MMBtu. Thus, management expects payback on the Aruchara-4 ST-1 well within three months. While drilling the Aruchara-4 ST-1 well, the company identified gas in three additional zones (H3, H4 and H5) which have been perforated and completed. The company plans to test these three additional zones (H3, H4 and H5) after the recompletion of the Aruchara-3 well is finished and the well is put back on production. Two of the additional zones, the H3 and H4 zones, are a continuation of the naturally fractured section which the company encountered while drilling the Aruchara-3 well. The additional H5 zone was encountered during the drilling of the Aruchara-4 ST-1 well. Further testing of these zones is part of the company's rescoping of the potential of Maria Conchita. Following the completion of the Aruchara-4 ST-1 well, the drilling rig will be moved to the Aruchara-3 well to perform the necessary recompletion operations. This work aims to restore the Aruchara-3 well to its full production capability, where the well was producing 12 MMcf/d prior to downhole mechanical obstruction getting stuck in the wellbore. Completion of the Aruchara-3 well workover is expected to take two weeks. Furthermore, the company is in the final stages of expanding its processing facilities at Maria Conchita, bringing the block's total processing and transportation capacity to 30 MMcf/d, with final upgrades expected to be completed in the month of November, alongside the recompletion of the Aruchara-3 well. Management expects that the Aruchara-4 ST-1 well will be able to consistently deliver over 15 MMcf/d and following the recompletion of the Aruchara-3 well, the two wells should be able to deliver a total field production close to 30 MMcf/d for filling, processing and transportation capacity. The company will also be drilling the Aruchara-5 well in the first quarter of 2026 to support sustaining this level of production at Maria Conchita. Sinu-9 At Sinu-9, the company and its joint venture partners have successfully installed additional dew point handling equipment at the CPF-1, increasing processing capacity at the block to 60 MMcf/d (40 MMcf/d through CPF-1 Surenergy and 20 MMcf/d through the INFRAES plant) with room for further expansion. This critical upgrade enhances CPF-1's ability to handle higher volumes of natural gas while maintaining dew point levels below RUT conditions and enhancing operational reliability, positioning Sinu-9 as a key growth driver for the company and Colombia. Construction of the initial pipeline loop at Sinu-9 is progressing, with completion targeted for the end of the year. Once complete, the company expects transportation capacity to increase to 40 to 45 MMcf/d. The Hechicero-1X well, the first new well in a planned six-well drill program, is expected to be spudded in the last week of November, 2025. Closing of the transactions with Establissemens Maurel & Prom S.A. remains subject to the receipt of regulatory approvals, including the approval of the Colombian Agencia Nacional de Hidrocarburos (the ANH) and the satisfaction of other customary closing conditions. Management is anticipating receipt of regulatory approval in Q4 2025. Jorge Fonseca, chief executive officer of NGE, commented: "After a year of building out infrastructure capacity and addressing the dew point issue at Sinu-9, NGE is now in a position to significantly increase production volumes and poised to exit the year with 50 to 55 MMcf/d of gross production between the two fields. The Aruchara-4 ST-1 well has been an outstanding success, exceeding management's expectations and we expect to fill the 30 MMcf/d of capacity at Maria Conchita following the recompletion of the Aruchara-3 well. We look forward to continuing our drilling efforts with our upcoming six well campaign at Sinu-9 and drilling the Aruchara-5 well thereby unlocking the full potential at this high-impact asset." Brian Paes-Braga, executive chairman of NG Energy, further commented: "I want to thank the team for the exceptional work that has been done over the past year putting the company in a position to continue to meaningfully scale production in the year ahead. Market pricing has continued to increase, with new volumes from Maria Conchita expected to be sold at greater than $11.00 (U.S.) per MMBtu and the Aruchara-4 ST-1 well expected to be paid back within three months. The company is expecting to become cash flow positive with ongoing capex being funded from internally generated cash flow. The company has a clean balance sheet, have amortized $14-million (U.S.) of debt with Macquarie Group, leaving a balance of just $26-million (U.S.) and expects to receive $110-million (U.S.) in cash in 2025 based on the expected closing schedule with Maurel & Prom. I am confident we have the right team and infrastructure in place as we enter this exciting new period of growth and make a meaningful impact on delivering sustainable natural gas to Colombia's energy market in the years to come." 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 the Americas, 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 Colombian marketplace (approximately $8 (U.S.)/MMBtu) with projected triple digit production growth over the next two to three years toward a production goal of 200 MMcf/d. To date, the company has raised over $200-million (U.S.) in debt and equity, and has constructed and commissioned three gathering, processing and treatment facilities, and associated pipelines with gross processing and transportation capacity of 60 MMcf/d expected in Q4 2025 with significant capital contributions from insiders who currently own approximately 32 per cent of the company. We seek Safe Harbor.