LNG Energy Group Corp. (TSXV: LNGE) (TSXV: LNGE.WT) (OTCQB: LNGNF) (FRA: E26) (the “Corporation” or “LNG Energy Group”) is pleased to announce its financial and operating results for the year ended on December 31, 2023. On August 15, 2023 (the “Closing Date”), LNG Energy Group completed the acquisition of Lewis Energy Colombia, Inc. (“Lewis Energy Colombia”) and the financial and operational results are measured from the Closing Date to December 31, 2023. All dollar amounts are expressed in United States dollars, except where otherwise indicated.
“With the acquisition of Lewis Energy Colombia, in August of 2023, LNG Energy Group established itself as producer and operator in Colombia. In 2024, we are focused on growing the production of our Colombian portfolio in a capital efficient manner,” commented Pablo Navarro, Chief Executive Officer and Chairman of the Corporation. “We have also entered into two CPPs in Venezuela, providing LNG Energy Group with a tremendous opportunity in one of the most prolific hydrocarbon provinces in the world.”
2023 Financial and Operating Results(1)
- Production before royalties of 18,057 Mcf/d natural gas and 193 bbl/d condensate (3,361 boe/d). Realized Sales Volumes before royalties of 17,931 Mcf/d and 191 bbl/d condensate (3,336 boe/d).
- Net loss of $1.1 million.
- Adjusted EBITDAX(2) of $6.1 million.
- Sales Revenues net of royalties of $13.6 million.
- Net Capital Expenditures of $7.1 million.
- 4th Quarter operating netbacks(2) of $4.44/Mcf natural gas and $64.75/bbl condensate ($27.36/boe).
- Repayment of $6 million in senior bank indebtedness in 2023 and a total of $8.9 million to date.
Update
- Lewis Energy Colombia began selling natural gas volumes under new long-term natural gas sales contracts December 1, 2023.
- LNG Energy Group began its 2024 workover and optimization program in the first quarter.
- Currently preparing for development and exploration drilling programs.
- In Colombia, Lewis Energy Colombia commenced a project to install a new compressor in the producing Bullerengue field. The compressor is expected to be in operation by the end of the second quarter of 2024, help increase the life of the reserves, and facilitate access to an additional 1.67 Bcf of natural gas at the north side of the field. The compressor will also increase the ability to respond to regulatory requirements and improve general operational efficiencies.
2024 Outlook
For the remainder of 2024, LNG Energy Group is focused on the following objectives:
Colombia
In Colombia, the Company expects to complete the following: (1) a workover and optimization program targeting four to six wells; (2) drill one development well in the producing Bullerengue field in the Sinú-San Jacinto-1 (“SSJN-1”) Block; (3) drill two to four exploration wells in the SSJN-1 and Perdices Blocks; (4) continuing to evaluate and strengthen the Corporations’s commitment to environmental, social and governance initiatives; and (5) the repayment of its indebtedness and strengthening of its capital and liquidity resources. For more information, please see the Company’s news release dated March 5, 2024.
Venezuela
On April 17, 2024, LNG Energy Group’s wholly own subsidiary, LNGEG Growth I Corp. (“LNG Venezuela”) was conditionally entered into a binding agreement with PDVSA Petroleo S.A. (“PPSA”), a subsidiary of Petroleos de Venezuela S.A. (“PDVSA”), the Venezuelan national oil company, for the operation of the Nipa-Nardo-Niebla and the Budare-Elotes CPPs in onshore Venezuela (collectively, the “Venezuela Blocks”). These Blocks are currently producing 3,000 bbl/d of light and medium oil. The CPPs were executed within the term of General License 44 issued by the US Office of Foreign Assets Control (OFAC). License 44 has been replaced by License 44A requiring US persons to wind down oil operations in Venezuela before May 31, 2024. The Corporation will assess in the coming days the applicability of License 44A to its intended operations in Venezuela and determine the most appropriate course of action. The Corporation intends to operate in full compliance with the applicable sanction regimes. For more information, please see the Company’s news release dated April 24, 2024.