LNG Energy Group Provides Strategic Review and Capital Strengthening Update
Toronto, January 20, 2025 – LNG Energy Group Corp. (TSXV: LNGE) (OTCQB: LNGNF) (FWB: E26) (“the Company” or “LNG Energy Group”) announced today developments regarding its ongoing strategic review process. This review aims to explore a variety of strategic options to enhance shareholder value, including potential financings, partnerships, investments, acquisitions, mergers, or other business combinations.
Strategic Review Overview
The Company’s Board of Directors has initiated a comprehensive strategic review with support from financial advisors, aiming to evaluate diverse alternatives for strengthening LNG Energy Group’s position and delivering better value to shareholders. The process considers various paths such as raising capital, exploring strategic alliances, or pursuing broader corporate transactions.
Capital Strengthening and Financing Plan
To support near-term development efforts, LNG Energy Group is actively working on farming out a portion of its non-operating interest in the VIM-41 Block located onshore Colombia. This initiative is part of a well development financing strategy (referred to as the JV Contribution) designed to raise capital necessary to commence drilling the B5 well in Colombia.
In parallel, the Company is examining all options to optimize available cash flow for drilling activities while balancing its financial obligations. These actions are crucial to support ongoing operational programs and ensure financial stability.
New Advisory Partnership
As part of the strategic review, LNG Energy Group has entered into an agreement with ECM Capital Advisors Inc. to provide assistance in evaluating all possible alternatives, including asset sales and financing options. This engagement follows the mutual termination of a previous agreement with Eight Capital, reflecting a shift in advisory focus to better align with the Company’s current strategic goals.
Amendment to Credit Agreement
Alongside these initiatives, LNG Energy Group is pleased to announce an amendment to its senior secured credit agreement, originally entered into on August 15, 2023, by LNG Canada Holdco Inc. (the “Borrower”) and its guarantor Lewis Energy Colombia, Inc., with Macquarie Group Ltd. acting as administrative agent.
The Company has reduced approximately US$20 million of the initial principal, bringing the outstanding balance to about US$50 million. The lenders have agreed to certain covenant relaxations through this amendment, facilitating the execution of strategic initiatives and providing flexibility to fund the planned drilling program.
About LNG Energy Group
LNG Energy Group is focused on acquiring and developing natural gas production and exploration assets with a primary emphasis on Latin America. The Company aims to build a strong portfolio of natural gas resources to meet growing energy demands in the region.
Forward-Looking Statements Disclaimer
This release contains forward-looking information that involves risks and uncertainties. Statements regarding the Company’s strategic initiatives, financing activities, operational plans, and future business outcomes are based on current expectations and assumptions. Actual results may differ significantly due to risks such as the Company’s ability to complete proposed transactions, regulatory approvals, commodity price fluctuations, and other unforeseen factors.
No assurances can be given that the strategic review or related transactions, including the JV Contribution, will successfully conclude. LNG Energy Group disclaims any obligation to update forward-looking statements except as required by law.
Contact Information
For further information, please contact:
Angel Roa
Chief Financial Officer
LNG Energy Group Corp.
Email: [email protected]
This announcement is not intended for distribution or dissemination in the United States.
This document summarizes the current strategic initiatives and capital management activities of LNG Energy Group as of January 20, 2025.