Mr. Serafino Iacono reports

NG ENERGY ANNOUNCES SIGNIFICANT INCREASE TO PRE-TAX NPV-10 WITH UPDATED RESERVES AND RESOURCES REPORTS FROM MARIA CONCHITA & SINU-9

NG Energy International Corp. has released the results of its independent evaluation of natural gas and condensate reserves and resources in respect of the year ended Dec. 31, 2022, conducted by Sproule International Ltd. These results highlight a very successful 2022 for the company following the completion of the production facilities and start of commercial production at the Maria Conchita block and the successful drilling and testing of two exploration wells at the Sinu-9 block.

Highlights:

• Maria Conchita block:
  • 71-per-cent, year-over-year increase in 3P (proved plus probable plus possible) reserves;
  • Company gross proved reserves of 21.5 BCF (billion cubic feet) (26.8 BCF project gross) of natural gas and 47,000 bbl (barrels) (59,000 bbl project gross) of condensate for before-tax NPV (net present value) with a 10-per-cent discount rate of $23.3-million (U.S.);
  • Company gross probable reserves of 17.5 BCF (21.9 BCF project gross) of natural gas and 14,000 bbl (17,000 bbl project gross) of condensate for before-tax NPV with a 10-per-cent discount rate of $14-million (U.S.);
  • Company gross possible reserves of 7.9 BCF (9.8 BCF project gross) of natural gas and 11,000 bbl (14,000 bbl project gross) of condensate for before-tax NPV with a 10-per-cent discount rate of $12.8-million (U.S.);
  • Company gross proved plus probable plus possible reserves of 46.8 BCF (58.5 BCF project gross) of natural gas and 72,000 bbl (90,000 bbl project gross) of condensate for before-tax NPV with a 10-per-cent discount rate of $50.1-million (U.S.);
  • Company gross unrisked best estimate contingent resources (development pending) of 65.8 BCF (82.2 BCF project gross) for before-tax NPV with a 10-per-cent discount rate of $49.7-million (U.S.); and
  • Company gross unrisked high estimate contingent resources (development pending) of 137.8 BCF (172.2 BCF project gross) for a before-tax NPV with a 10-per-cent discount rate of $120.3-million (U.S.);
• Sinu-9 Block:
  • Company gross unrisked best estimate contingent resources (development pending) of 249.5 BCF (346.5 BCF project gross) for before-tax NPV with a 10-per-cent discount rate of $294.4-million (U.S.);
  • Company gross unrisked high estimate (development pending) of 596.4 BCF (828.4 BCF project gross) for before-tax NPV with a 10-per-cent discount rate of $873.9-million (U.S.);
  • Advanced discussions under way for the development of infrastructure and gas offtake at Sinu-9 which include plans for early monetization and will allow Sinu-9 contingent resources to be moved to reserves.

Serafino Iacono, chief executive officer, commented: "We are extremely pleased with the results from the independent evaluation of the company's reserves and contingent resources at Maria Conchita and Sinu-9, which shows a significant upgrade from our 2021 reserve and resource reports. Our drilling success in 2022, combined with extensive work from our technical team and Sproule in the evaluation of both fields, has helped significantly derisk our asset base. We are very encouraged by the best and high estimate pretax NPV with a 10-per-cent discount rate figures for contingent resources at Sinu-9 and Maria Conchita which demonstrate significant value in our growing company versus our current market capitalization. We look to confirming these contingent resources with additional drilling and near-term advancements in infrastructure. The core focus for the company this year is to achieve early monetization of gas from Sinu-9. Our management team is targeting a combined production base between 25 to 30 million standard cubic feet per day from both fields by year-end. This falls in line with the company's long-term objective of building a 200,000-standard-cubic-feet-per-day production base. I would like to thank all members of our team for their tireless effort, and our shareholders and supporters, as we continue to grow this company and aim to make a significant impact on the natural gas reserves in Colombia."

Maria Conchita block in the Guajira basin, Colombia -- 2022 reserves

The report entitled "Evaluation of the P&NG Reserves and Resources of NG Energy International in the Maria Conchita Block, Colombia" was prepared by Sproule with an effective date of Dec. 31, 2022. The company holds an 80-per-cent working interest in the Maria Conchita block. Reserves and resources attributed to the H1A, H1A1, H1B, H2, H2B and LM2 zones have been included in the Maria Conchita report. Contingent resources for the Maria Conchita block are petroleum and natural gas classified as development pending; they are attributed a chance of development risk factor of 0.73. However, the company believes the unrisked best estimate contingent resources provides the most appropriate indication of volumes that will become 2P petroleum and natural gas reserves. Based on the foregoing, the Maria Conchita report estimates the following reserves and resources:

• 74-per-cent, year-over-year increase in proved reserves to company gross 3.6 million boe (barrels of oil equivalent( (21.5 BCF of natural gas and 47,000 bbl of condensate);
• 16-per-cent, year-over-year increase in probable reserves to company gross 2.9 million boe (17.5 BCF of natural gas and 14,000 bbl of condensate);
• Initial possible reserves of company gross 1.3 million boe (7.9 BCF of natural gas and 11,000 bbl of condensate);
• 71-per-cent, year-over-year increase in proved plus probable plus possible reserves at the Maria Conchita block to company gross 7.9 million boe or 46.8 BCF (before-tax NPV with a 10-per-cent discount rate of $50.1-million (U.S.));
• Company gross unrisked best estimate contingent resources (development pending) of 65.8 BCF of natural gas and 136,000 bbl of condensate or 11.1 million boe (before-tax NPV with a 10-per-cent discount rate of $49.7-million (U.S.)) and unrisked high estimate contingent resources (development pending) of 137.8 BCF of natural gas and 283,000 bbl of condensate or 23.2 million boe (before-tax NPV with a 10-per-cent discount rate of $120.6-million (U.S.)).

For further disclosure regarding the Maria Conchita block, please see the section entitled "Additional Disclosure Regarding the Maria Conchita and Sinu-9 Block" below.

Sinu-9 block in the Sinu San Jacinto basin of Colombia -- 2022 contingent resources

The report entitled "Evaluation of the P&NG Resources of NG Energy International in the Sinu-9 Block, Colombia" was prepared by Sproule with an effective date of Dec. 31, 2022. The company's working interest in the Sinu-9 block is 72 per cent, subject to payment of ANH sliding scale royalties. Resources attributed to the Hechizo, Brujo, Magico, Mago, Hechicero, Encanto, Milagroso, Porquero, Embrujo, Ensalmo and Sortilegio zones have been included in the Sinu-9 report. Contingent resources for the Sinu-9 block are petroleum and natural gas classified as development pending; they are attributed a chance of development of 80 per cent. However, the company believes the unrisked best estimate contingent resources provides the most appropriate indication of volumes that will become 2P petroleum and natural gas reserves. Based on the foregoing, the Sinu-9 report estimates company gross unrisked best estimate contingent resources (development pending) of 249.5 BCF (before-tax NPV with a 10-per-cent discount rate of $294.4-million (U.S.)) and company gross unrisked high estimate contingent resources (development pending) of 596.4 BCF (before-tax NPV with a 10-per-cent discount rate of $873.9-million (U.S.)).

For further disclosure regarding the Sinu-9 block, please see the section entitled "Additional Disclosure Regarding the Maria Conchita and Sinu-9 Block" below.

Additional disclosure regarding the Maria Conchita block and Sinu-9 block

Maria Conchita block

Total gas is planned to be produced through new and existing wellbores and a pipeline to a processing facility using established recovery technology.

The development plan for the reserves area located within the Maria Conchita block includes the production maintenance of the Aruchara-1 well, as well as the drilling of a total of six wells; three in the Aruchara field and three in the Tinka field on 425 acres spacing. Production will be processed through an existing facility.

The development plan for the contingent resources area located within the Maria Conchita block includes the drilling of a total of 10 wells; nine in the Aruchara field and one in the Tinka field on 425 acres spacing. Additionally, expansion of the existing facility is included to a total capacity of 60 million cubic feet per day for the best estimate scenario. Due to the number of reservoirs identified in the area, the number of wells may change by category according to the uncertainty identified in reservoir areas, since they are not completely centric with respect to each other.

The natural gas and condensate reserves and resources were estimated based on the technically recoverable volume, operating and capital costs and the terms of the fiscal regime. Forecasts of net revenue were prepared by predicting the annual production from the reserves, resources and product prices. Gas reserves and resources have only been assigned based on the gas contracts and the gas contract precedents in effect as of Dec. 31, 2022.

In sum, the development forecast presented in the Maria Conchita report was based on a complete evaluation of the company's lands for the zones identified by the company to be prospective for economic development as of Dec. 31, 2022. The development forecast represents full development of the lands for which reserves and resources could be assigned. Additional potential could exist within zones which were not identified by the company, within the scope of the Maria Conchita report.

Sinu-9 block

Total gas is planned to be produced through new and existing wellbores and a pipeline to a processing facility using established recovery technology.

The development plan for the Sinu-9 Block includes the drilling of 13 locations for the low-estimate scenario, 25 locations for the best-estimate scenario and 32 locations for the high-estimate scenario. Production will be processed through new facilities to be built by the company. Due to the number of reservoirs identified in the area, the number of wells may change by category according to the uncertainty identified in the reservoir areas, since they are not completely concentric with respect to each other.

The natural gas resources were estimated based on the technically recoverable volume, budgeted operating and capital costs and the terms of the fiscal regime. Forecasts of net revenue were prepared by predicting the annual production from the resources and product prices. Gas resources have only been assigned based on the gas contracts and the gas contract precedents expected to be in place at production start-up.

In sum, the development forecast presented in the Sinu-9 report was based on a complete evaluation of the company's lands for the zones identified by the company to be prospective for economic development as of Dec. 31, 2022. The development forecast represents full development of the lands for which resources could be assigned. Additional potential could exist within zones which were not identified by the company, within the scope of the Sinu-9 report.

With regard to the costs associated with achieving additional commercial production at the Maria Conchita block and the Sinu-9 block, and the general timeline of the projects, please see the company's annual information form dated April 13, 2022, and its most recent management's discussion & analysis, both of which can be found on SEDAR.

Sproule International, an independent qualified reserves and resources evaluator, has conducted the reserves and resource evaluation for the Maria Conchita block and Sinu-9 block in accordance with the Canadian Oil and Gas Evaluation (COGE) Handbook. It adheres in all material aspects to the principles and definitions established by the Calgary Chapter of the Society of Petroleum Evaluation Engineers regarding annual reserve and resource reports that are being released in the public domain. The COGE Handbook is incorporated by reference in National Instrument 51-101 -- Standards of Disclosure for Oil and Gas Activities (NI 51-101). Sproule has also reviewed the contents of this news release and found it to be prepared in accordance with NI 51-101.

Restricted share units grant

Further to the company's press release dated March 21, 2023, the company has decided to cancel the previously announced grant of an aggregate of 5,725,000 restricted share units (RSU) to officers, directors, employees and consultants of the company. The grant of the RSUs will be reconsidered by the company at a later date.

About NG Energy International Corp.

NG Energy International is a publicly traded E&P company on a mission to provide a clean and sustainable solution to Colombia's energy needs. The company intends on executing this mission by producing and bringing gas to the premium priced Colombian gas market from the blocks, SN-9, a 311,353-acre block which is adjacent to Canacol's Nelson field, as well Maria Conchita, a 32,518-acre block located in the region of La Guajira. NG's team has extensive technical expertise and a proven record of building companies and creating value in South America.

We seek Safe Harbor.