TORONTO, Nov. 20, 2024 (GLOBE NEWSWIRE) -- LNG Energy Group Corp. (TSXV: LNGE) (TSXV: LNGE.WT) (OTCQB: LNGNF) (FWB: E26) (the "Company” or "LNG Energy Group”) today provided an operational update in respect of its Colombian operations.
Gas Sales Agreements
As previously announced on October 21, 2024, as a result of unexpected production restrictions at certain wells in the Bullerengue natural gas field, the Company has had to limit natural gas deliveries under certain gas sales agreements dedicated to supplying natural gas demand. Lewis Energy Colombia, Inc. ("LEC”), a wholly-owned subsidiary of the Company, entered into amendment to certain gas sales agreements to reduce the applicable volumes by 5.0 MMbtu/d for a period of four months with no significant changes to the average natural gas sales price.
LEC's attempts to address the production disruptions by way of an extensive workover campaign and drilling initiatives have not resulted in production increases. As a result, LEC has issued notice to the applicable regulator in Colombia regarding a restriction in the natural gas deliveries under certain supply contracts. LEC continues to receive the proceeds from the natural gas sales and has notified its senior lenders of the foregoing notice.
Corporate Reorganization Initiatives
In order to reduce costs, the Company is in the process of implementing a corporate reorganization at its operations in Colombia resulting in annualized savings of approximately $1 million. The Company continues to review ways to optimize costs, its business and operations.
Interim COO Appointment
The Company announced today the resignation of Nicolas Ziperovich as Chief Operating Officer of the Company to pursue new endeavours. LNG Energy Group would like to thank Mr. Ziperovich for his service to the Company and wishes him much success in his future endeavours.
Stan Jumper, a director of the Company, has been appointed as Interim Chief Operating Officer. Prior to LNG Energy Group, he was the Vice President of Exploration and Development at Lewis Energy Group, L.P. for more than 30 years. In that role, he presided over geological well location approvals, prospect development and new exploration ventures. Mr. Jumper holds an MBA (Executive Management Studies) from Southern Methodist University, a M.S. (Geology) from the University of Texas at Arlington and a B.S. (Geology) from East Texas State University.
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About LNG Energy Group
The Company is focused on the acquisition and development of oil and gas exploration and production assets in Latin America.
For more information, please see below:
Website:
Investor Relations:
Pablo Navarro, Chief Executive Officer and Chairman
Email: investor.relations@lngenergygroup.com
Telephone: 917-612-6331
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X: @LNGEnergyCorp
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This news release contains "forward-looking information” and "forward-looking statements” (collectively, "forward-looking statements”) within the meaning of applicable Canadian securities laws. All statements other than statements of historical fact are forward-looking statements, and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often using phrases such as "expects”, "anticipates”, "plans”, "budget”, "scheduled”, "forecasts”, "estimates”, "believes” or "intends”, or variations of such words and phrases, or stating that certain actions, events or results "may” or "could”, "would”, "should”, "might” or "will” be taken to occur or be achieved, are not statements of historical fact and may be forward-looking statements. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties and other factors which may cause actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include: general business, economic, competitive, political and social uncertainties; delay or failure to receive any necessary board, shareholder or regulatory approvals, factors may occur which impede or prevent LNG Energy Group's future business plans; and other factors beyond the control of LNG Energy Group. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this news release. Except as required by law, LNG Energy Group assumes no obligation to update the forward-looking statements, whether they change as a result of new information, future events or otherwise, except as required by law.