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LNG Energy Group Corp. (TSXV: LNGE,OTC:LNGNF) (TSXV: LNGE,OTC:LNGNF.WT) (OTCQB: LNGNF) (FWB: E26) (the " Company " or " LNG Energy Group ") is pleased to announce that the Company's Colombian branch has emerged from the Proceso de Recuperación Empresarial (" PRES "), as regulated under Colombia Law 2437 of 2024, for insolvency protection, with a Reorganization Agreement ("Agreement") that has been approved by more than 70% of all credit categories, including over 90% employee support. The Colombian branch was additionally admitted to judicial validation of the Agreement before the Superintendencia de Sociedades (the Superintendency of Corporations) on October 23, 2025. The Agreement contemplates a staggered repayment schedule, starting on the date of final judicial validation, of the different credit classes over 39 quarters (final maturity around 2034), with allowance for accelerated payments, should this be a possibility. Admittance to judicial validation of the Agreement grants the Company's Colombian branch the continuity of the protections provided by the PRES.
The Company would like to announce the settlement of US$10,725,641 in outstanding debt with Lewis Energy Group ("LEG"). This obligation originated from the Share Purchase Agreement and the Sale and Purchase Agreement – Additional Assets ("APA") entered on August 15, 2023. The original debt totaled US$19,115,414, of which US$8,389,773 had been repaid. The outstanding balance owed was settled in lieu of seizure via LEG's enforcement of the collateral rights and first security established in the APA, resulting in the transfer of the Additional Assets — Rig 16, Rig 22, Rig 6, and various yellow iron equipment. The Additional Assets were valued by a third-party appraiser in October 2023 and were recorded on the September 2025 trial balance sheet of the Company at a net book value of US$7,354,416.
We expect to announce additional results of the strategic review process as LNG Energy Group continues to execute initiatives to enhance its liquidity position, optimize costs, reduce financial obligations and stabilize natural gas production.
Operational Update
The Company's average daily production in Q3 and year to date was 9.2 Mmcf/d and 11.9 Mmcf/d, respectively, and realized sales prices were US$10.7 per Mcf and US$9.8 per Mcf, in Q3 and year to date, respectively. The productivity on some of the wells has declined due to several subsurface factors preliminarily identified, that do not seem to have impacted the original gas in place. The Company continues evaluating and taking actions to enhance value.
Cease Trade Order
The Failure-to-File Cease Trade Orders in Multiple Jurisdictions (FFTCO) continues and the Company is working to file the Company's annual audited financial statements for the fiscal year ended December 31, 2024, the related management's discussion and analysis, and the CEO and CFO certificates relating to the audited annual financial statements as required by National Instrument 52-109 – Certification of Disclosure in Issuers' Annual and Interim Filings (collectively, the " Required Documents ") for the fiscal year ended December 31, 2024. Such filings will constitute the Company's application to have the FFCTO revoked. There can be no assurance that the FFCTO will be revoked on the timeline contemplated by the Company.
About LNG Energy Group
The Company is focused on the acquisition and development of natural gas production and exploration assets in Latin America. For more information, please visit www.lngenergygroup.com .
For more information please contact:
Angel Roa, Chief Financial Officer LNG Energy Group Corp.
Website: www.lngenergygroup.com
Email: investor.relations@lngenergygroup.com
Find us on social media:
LinkedIn: https://www.linkedin.com/company/lng-energy-group-inc/
Instagram: @lngenergygroup
X: @LNGEnergyCorp
CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION:
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 that reflect the current views and/or expectations of management of LNG Energy Group with respect to performance, business and future events. Forward-looking information can often be identified by words such as "may", "will", "would", "could", "should", "believes", "estimates", "projects", "potential", "expects", "plans", "intends", "anticipates", "targeted", "continues", "forecasts", "designed", "goal", or the negative of those words or other similar or comparable words. Forward-looking statements are based on the then-current expectations, beliefs, assumptions, estimates and forecasts about the business and the industry and markets in which LNG Energy Group operates, in light of our experience and perception of historical trends, current conditions and expected future developments, as well as other factors that we believe are appropriate and reasonable in the circumstances, and that while considered reasonable, are subject to known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those expressed or implied in the forward-looking information. There can be no assurance that such statements will prove to be accurate, and accordingly, readers should not place undue reliance on the forward-looking statements contained in this news release. LNG Energy Group does not undertake any obligation to release publicly any revisions or updating any voluntary forward-looking statements, except as required by applicable securities law, whether they change as a result of new information, future events or otherwise.
This news release includes, but is not limited to, forward-looking statements relating to: the Company's business plans, strategies, priorities and development plans, including the strategic initiatives being considered by the Company and the corporate reorganization and anticipated annual savings therefrom; the anticipated benefits of the completion of various strategic initiatives being considered by the Company; the ability of the Company to book additional reserves in the future; the completion of any transactions relating to the Strategic Review; receipt of all regulatory approvals, including the approval of the TSXV, in connection with the Strategic Review; the anticipated insider participation in any financing and transaction; and the anticipated use of proceeds from the transactions relating to the Strategic Review. The Company's actual decisions, activities, results, performance, or achievement could differ materially from those expressed in, or implied by, such forward-looking statements and accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur or, if any of them do, what benefits that the Company will derive from them.
The risks and uncertainties include, but are not limited to: the Company's ability to complete the Strategic Review on the terms described herein or at all or to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; the delay or failure to receive regulatory or other approvals, including any approvals of the TSXV and the Company's senior lenders, in connection to any of the transactions contemplated herein or that could take place in the future; the anticipating timing of filing the Required Documents; the final results of the PRES and the Agreement; the enforcement of collateral by the Company's senior lenders; the Company's ability to secure the required regulatory approvals to operate in Venezuela and/or the cancellation or expiration of the CPP contracts; general business, economic, competitive, political and social uncertainties; risks related to the Company's ability to complete any of the proposed strategic initiatives described in this and other news releases on the terms described herein or at all; risks related to commodity prices; 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; that any of the foregoing transactions, including the JV Contribution or any transactions relating to the Strategic Review, will achieve a satisfactory closing; other factors beyond the control of LNG Energy Group.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
