NG ENERGY ANNOUNCES FILING OF Q2 FINANCIAL RESULTS

Executive Summary

• NG Energy International Corp. filed its financial results for the three and six months ended June 30, 2025, reporting quarterly sales revenue of US$10.0 million and a cash flow from operations of -US$1.6 million in Q2 2025.
• The company highlighted significant production ramp-ups, particularly at the Sinú-9 asset, which reached 22.0 MMcf/d by the end of Q2 and is expected to reach 60.0 MMcf/d by Q1 2026 following the installation of condensate handling equipment.
• The release included updated reserve and resource estimates announced in April 2025, showing a 57% increase to 1P reserves to 81.0 Bcf and substantial increases in 2P and 3P reserves, alongside detailed operational plans for the remainder of 2025.

Key Details

• Financial Performance (Q2 2025):
  • Quarterly sales revenue: US$10.0 million.
  • Cash flow from operations: -US$1.6 million (attributed to operating expenses for Sinú-9 commencement and one-time re-engineering costs for processing/compression facilities).
  • Realized price from Sinú-9: US$6.23/Mcf (YTD 2025), with expectations to increase as spot market pricing averages >US$12/Mcf in August 2025.
  • Realized price from Maria Conchita: US$8.33/Mcf (YTD 2025).
• Production Updates:
  • Sinú-9: Achieved average daily production of 8.04 MMcf/d in Q2 2025; production increased to 22.0 MMcf/d by the date of financial statements. Condensate handling equipment expected operational by end of August 2025. Production targets: 30.0 MMcf/d short-term, rising to 60.0 MMcf/d by Q1 2026.
  • Maria Conchita: Achieved average daily production of 7.09 MMcf/d in Q2 2025 (down from Q2 2024 due to mechanical obstruction in Aruchara-3 well). Expected to increase significantly following recompletion of Aruchara-3 and drilling of Aruchara-4 and Aruchara-5. CEO guidance suggests ending the year around 25 MMcf/d.
  • YTD 2025 Average Daily Production: 15.67 MMcf/d.
• Reserves and Resources (as of April 24, 2025 announcement):
  • 1P Reserves: 81.0 Bcf (57% increase), before-tax NPV10 of US$123.5 million.
  • 2P Reserves: 196.0 Bcf (21% increase), before-tax NPV10 of US$328.4 million.
  • 3P Reserves: 364.7 Bcf (20% increase), before-tax NPV10 of US$555.4 million.
  • Contingent Resources: 173.6 Bcf (best estimate), before-tax NPV10 of US$231.4 million.
  • Prospective Resources: 332.5 Bcf (best estimate), before-tax NPV10 of US$562.0 million.
• Operational Plans & Strategy:
  • Commencement of extensive drilling campaign at Sinú-9 led by incoming operating partner Maurel & Prom.
  • Drilling of two additional wells at Maria Conchita (Aruchara-4 and Aruchara-5).
  • Recompletion of Aruchara-3 well to restore full production capabilities.
  • Gross processing and transportation capacity of 60 MMcf/d expected in Q3 2025.
• Working Interests:
  • Sinú-9: Company holds 72% working interest (subject to ANH approval for assignment of remaining 21% to bring contractual interest to 51%); 40% contractual interest sold to Maurel & Prom effective Feb 1, 2025.
  • Maria Conchita: Company holds 100% contractual interest and 80% working interest.

Notable Quotes

• "Q2 2025 laid the groundwork for a very exciting second half of the year for the Company," said Jorge Fonseca, CEO of NG Energy International Corp. "Our focus for the rest of the year will be on optimising operations and ramping up production, with Sinú-9 expected to steadily climb from 22 MMcf/d today toward 60 MMcf/d at the start of 2026 and Maria Conchita expected to end the year around 25 MMcf/d. We will also commence an extensive drilling campaign at Sinú-9 led by our incoming operating partner, Maurel & Prom, as well as drill two additional wells at Maria Conchita and complete the workover of Aruchara-3 restoring the well to its full production capabilities. These efforts, combined with favorable market conditions, position NGE for strong performance and value creation in 2025."