NG Energy announces binding LOI with Plus+ Energy E.S.P. for 8,000 MMBTU of gas produced from Maria Conchita block

NG Energy International release

VANCOUVER, B.C., October 13, 2022 – NG Energy International Corp. (“NGE” or the “Company”) (TSXV: GASX) (OTCQX: GASXF) is pleased to announce that the Company has reached an agreement with Plus+ Energy E.S.P. for the purchase and sale of natural gas produced from the Aruchara-1 well and coming wells at the Maria Conchita block. The binding offer is for the acquisition of up to 8,000 million British Thermal Units (MMBTU) per day on a firm volume purchase agreement, or the equivalent volume corresponding to NGE’s 80% participating interest in the Maria Conchita block’s production. The date of delivery is between January 2023 and February 2026, for three years with a set price of US$6.50 per MMBTU.

The Company is currently producing at a rate of 4,355 MMBTU per day from the Maria Conchita block with good performance and expects to increase production to 20,740 MMBTU per day. The Company has been selling gas on an interruptible contract at a price of US$5.08 per MMBTU to Grupo Vanti and Enel Colombia and will continue selling on an interruptible basis for production from Maria Conchita above 8,000 MMBTU per day.

Serafino Iacono, Chief Executive Officer of NGE, commented “we are very pleased to have received a binding letter of intent for the sale of our gas from Maria Conchita and look forward to fulfilling further demand, from the country of Colombia, as we develop more wells at both our Maria Conchita and SINU-9 blocks.”