Highlights:

• LNG Energy Group has been conditionally awarded two Productive Participation Contracts (“CPPs”) to develop and produce hydrocarbons in Venezuela.
• The contracts cover five onshore fields that are currently producing approximately 3,000 bbl/d of oil.
• The Blocks have existing production and transportation infrastructure in place.

TORONTO, April 24, 2024 (GLOBE NEWSWIRE) — LNG Energy Group Corp. (TSXV: LNGE) (TSXV: LNGE.WT) (OTCQB: LNGNF) (FRA: E26) (the “Company” or “LNG Energy Group”) is pleased to announce that its wholly-owned subsidiary, LNGEG Growth I Corp. (“LNG Venezuela”), has 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”).

Venezuela – Country Dynamics at a Glance

The country is widely recognized as the location of some of the best oil and gas assets globally. According to the BP 2023 Statistical Review, Venezuela has oil reserves of more than 300 billion bbl, the largest in-country oil reserves in the world, and by a wide margin the longest reserve life. BP also estimates Venezuela has natural gas reserves of more than 200 trillion cubic feet, ranking number nine in the world.

Venezuela Blocks

The Venezuela Blocks are located onshore in the Anzoátegui and Monagas States and are producing approximately 3,000 bbl/d of light and medium oil. LNG Venezuela will work jointly with PPSA to develop a work program based on technical due diligence and field visits.

Contract Terms

The agreement with PPSA was entered into on April 17, 2024. LNG Venezuela will provide the required investment to further develop the fields and conduct operations and has 120 business days from the date of signing to satisfy the required contractual conditions precedent in order to be awarded the CPPs and initiate operations. Pursuant to the CPPs, LNG Venezuela will have a contractual entitlement to between 50-56% of the hydrocarbons production from the Venezuela Blocks.

Additional Considerations

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 License 44 has been replaced by License 44A requiring US persons to wind down oil operations in Venezuela before May 31, 2024.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 Company 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 Company intends to operate in full compliance with the applicable sanctions regimes.

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.

LNG Energy Group Corp.
James Morris, Vice-President, Business Development and Investor Relations
Email: [email protected]
Telephone: 205-835-0676

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. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often using phrases such as “expects”, “anticipates”, “plans”, “budget”, “scheduled”, “forecasts”, “estimates”, “believes” or “intends”, or variations of such words and phrases, or stating that certain actions, events or results “may” or “could”, “would”, “might” or “will” be taken to occur or be achieved, are not statements of historical fact and may be forward-looking statements. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties and other factors which may cause actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include: general business, economic, competitive, political and social uncertainties; 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; and other factors beyond the control of LNG Energy Group. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this news release. Except as required by law, LNG Energy Group assumes no obligation to update the forward-looking statements, whether they change as a result of new information, future events or otherwise, except as required by law. There can be no guarantee that the Company or LNG Venezuela shall be able to complete the acquisition terms required by PPSA.

Reported production levels may not be reflective of sustainable production rates and future production rates may differ materially from the production rates reflected in this news release due to, among other factors, difficulties or interruptions encountered during the production of hydrocarbons. 

Neither 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.

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