LNG Energy Group: Operational Update and Debt Repayment Progress

LNG Energy Group Corp. (TSXV: LNGE) (TSXV: LNGE.WT) (OTCQB: LNGNF) (FWB: E26) has recently provided an operational update, highlighting its progress in debt repayment and various initiatives aimed at enhancing production and sustainability. The company's commitment to environmental, social, and governance (ESG) principles is evident in its recent achievements.

The company has successfully repaid approximately U.S.$14.7 million in amortization on its long-term bank debt since August 2023. This significant debt repayment demonstrates LNG Energy Group's strong financial management and commitment to improving its liquidity and cash flow. By reducing its debt obligations, the company can focus on reinvesting in its operations and growth opportunities.

LNG Energy Group's ESG initiatives, particularly in Colombia, are driving its long-term sustainability. The company's wholly-owned subsidiary, Lewis Energy Colombia, Inc. (LEC), has successfully obtained ISO recertifications for Quality Management System (QMS), Environmental Management Systems (EMS), and Occupational Health and Safety (OH&S) Management System. These certifications recognize LEC's commitment to proactive measures in minimizing its environmental footprint, complying with legal requirements, and achieving its environmental objectives. Additionally, LEC is dedicating property to reforestation projects, contributing to a reduction in its carbon footprint and protecting local watersheds.

The company has also completed a new compressor project at the Bullerengue field, which began operation recently. This compressor will increase the reserves life of the field, facilitate access to an additional 1.67 Bcf of natural gas at the north side of the field, and enhance LEC's ability to respond to regulatory requirements and improve general operational efficiencies. The new compressor will play a crucial role in optimizing production and improving the company's financial performance.

LNG Energy Group is committed to maintaining a strong core rig crew while optimizing resource use to increase company income. The company is continuing studies to offer drilling rig services to third parties in Colombia, which will allow it to mobilize its equipment and personnel in the fourth quarter of 2024 to pursue workover and drilling activities.

The company's gas sales agreements amendments with off-takers allow for temporary lower nominations to facilitate maintenance and workover programs. This strategic move ensures the stability of the Colombian gas market while the company works on remediating production restrictions and expects to have production back to normal levels upon execution of well maintenance and drilling activity.

In conclusion, LNG Energy Group's operational update demonstrates its commitment to debt repayment, ESG initiatives, and enhancing production capabilities. The company's focus on sustainability, financial management, and operational efficiency positions it well for long-term growth and success in the energy sector.