LNG Energy Group Corp. (TSXV: LNGE) (TSXV: LNGE.WT) (OTCQB: LNGNF) (FWB: E26) (the “Company” or “LNG Energy Group”) 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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