NG Energy Fuels Colombia's Grid with Major Natural Gas Discovery

CALGARY, AB – May 28, 2026 – NG Energy International Corp. (TSX: GASX) today announced a significant operational success that promises to bolster Colombia's domestic energy supply, revealing highly positive drilling results from its Aruchara-5 well at the Maria Conchita Block. The well is already completed, connected, and selling new gas volumes into a nation grappling with a growing energy deficit.

This development marks a critical milestone for the Calgary-based company, substantially increasing its production capacity and strengthening its position as a key emerging player in South America's premium natural gas market. The news comes as Colombia actively seeks to enhance its energy security amidst dwindling national reserves and rising demand.

A Surge in Production from Aruchara-5

The Aruchara-5 well was successfully drilled to a total depth of 9,097 feet, encountering six distinct gas-bearing zones. According to the company, wireline logs and surface tests confirmed productive natural gas across all targeted zones from H1 through H6, validating the block's geological potential.

Following its successful drilling, the well was immediately connected to the nearby central processing facility. Initial production, drawn from just the H1 zone, has already reached a robust rate of 11 million cubic feet per day (MMcf/d) gross, or 8.8 MMcf/d net to the company. This single well's output has pushed total field production at the Maria Conchita Block, in which NGE holds an 80% working interest, to 18 MMcf/d gross.

When combined with production from its Sinú-9 block, where the Hechicero-1X well recently came online, NG Energy's total net production has climbed to approximately 23.2 MMcf/d. This rapid increase in output demonstrates the company's ability to execute its development plans and quickly monetize its discoveries.

Capitalizing on a Premium Energy Market

The timing of this production surge is particularly advantageous for NG Energy. Colombia is facing a structural natural gas deficit, with proven reserves estimated to cover less than six years of consumption at current rates. This supply-demand imbalance, coupled with the government's push for energy transition towards cleaner fuels like natural gas, has created a structurally premium pricing environment.

While NG Energy has contracted offtake agreements for a portion of its production, any incremental volumes from Maria Conchita above 15 MMcf/d are being sold directly into the Colombian spot market at prices around US$11.50 per thousand cubic feet (Mcf). This is significantly higher than prices in many other global markets and provides a powerful financial incentive for accelerated development. The company benefits from a similar structure at its Sinú-9 block, where excess volumes are expected to fetch approximately US$13.00/Mcf.

The increased domestic supply from fields like Maria Conchita is crucial for Colombia, which has been forced to ramp up imports of liquefied natural gas (LNG) to avert potential shortages and power disruptions. Each new cubic foot of domestic gas helps reduce reliance on more expensive foreign imports and strengthens national energy sovereignty.

A Fully Funded and Aggressive Growth Strategy

The operational success at Aruchara-5 is underpinned by a strong financial foundation. NG Energy recently reported a 48% year-over-year increase in gas sales for the first quarter of 2026 and a significant swing to profitability, posting a net income of nearly US$56 million compared to a loss in the same period last year. The company's balance sheet was further transformed by a strategic transaction with Maurel & Prom, which saw NGE monetize 40% of its interest in the Sinú-9 Block for US$150 million in cash.

With a robust treasury, the company states it is fully funded to pursue an aggressive work program for the remainder of 2026. At Maria Conchita, plans are already in motion to further enhance production. This includes a well intervention at Aruchara-3 to optimize its flow rates and a workover at Aruchara-1 to restore and potentially increase its output. Critically, the success of Aruchara-5 has greenlit the drilling of a new development well, Aruchara-6, which is targeted to spud in the third quarter of 2026. The existing infrastructure at the block can handle up to 30 MMcf/d, providing ample capacity for this anticipated growth.

Brian Paes-Braga, Executive Chairman of NGE, commented on the momentum. "Aruchara-5 has confirmed productive gas across all six zones from H1 through H6 and is now connected and selling into the market – we are already seeing the commercial benefit of this program," he stated in the press release. "With Aruchara-6 on the horizon and a fully funded program in place through year-end, NGE has never had a more active operational program than it does today."

Reshaping Colombia's Energy Landscape

While the Colombian natural gas sector remains dominated by state-controlled giant Ecopetrol and established independent Canacol Energy, NG Energy is rapidly carving out a significant niche. The company's recent production milestones and ambitious growth plans position it as a dynamic force in the market. With a stated goal of capturing a 20% market share, NGE's strategy of discovering and developing large-scale fields is directly addressing Colombia's pressing need for new domestic gas sources.

Beyond Maria Conchita, the company's partner, Maurel & Prom, is advancing a six-well campaign at the Sinú-9 block, where infrastructure is also being expanded. A new pipeline loop is expected to increase transportation capacity to 40 MMcf/d shortly, with further expansions planned to potentially reach 90 MMcf/d later in the year. This parallel development on two major fronts underscores a period of intense operational activity and scaling for NG Energy, promising a continued upward trajectory in its contribution to Colombia's energy future.