TORONTO, Aug. 22, 2024 (GLOBE NEWSWIRE) -- LNG Energy Group Corp. (TSXV: LNGE) (TSXV: LNGE.WT) (OTCQB: LNGNF) (FWB: E26) (the "Company" or "LNG Energy Group") is excited to announce the creation of its new Oilfield Services Division at its wholly owned subsidiary, Lewis Energy Colombia, Inc. ("LEC"). Distinct from most other E&P companies, LEC owns and operates three rigs - two drilling and one workover - capable of executing a wide range of well services, including new exploration and development wells.
"LEC is a one-of-a-kind operator with the equipment, personnel and expertise to offer turnkey drilling and workover solutions," said Pablo Navarro, Chairman and Chief Executive Officer of LNG Energy Group. "Through the creation and deployment of the Oilfield Services Division, LEC will not only generate another revenue stream, but further strengthen its position as an integral part of the energy landscape in Colombia."
Colombia Natural Gas Market
The Colombian natural gas market is facing a supply-demand imbalance, which was further exacerbated in 2024 by the El Niño phenomenon leading to lower rainfall, subsequent reduced hydroelectric power generation, and further reliance on natural gas fired power plants. Absent any import capacity additions in the short-term, Colombia can meet its growing domestic natural gas demand is through additional exploration and development of natural gas fields. This should translate into an increase in demand for efficient and effective drilling services along with experienced service providers.
Rig Details
LEC has three rigs on the ground in its Sinú-San Jacinto Norte-1 Block near Barranquilla, Colombia. They include one 1,600 HP top-drive drilling rig, one 1,000 HP top-drive drilling rig and one 550 HP workover rig. These rigs come complete with generators, pumps, BOPs, mud systems, tanks and other equipment needed to fully execute drilling and workovers operations. Together, the rigs and associated equipment have an estimated value of approximately U.S.$10 million.
History and Leadership
Since LEC's entry into Colombia in 2008, it has drilled 70 exploration and production wells and has completed numerous workovers using internal equipment. The Company has had a wildcat success rate nearly double the industry average. These efforts have been led by an expert in-house team that collectively has drilled more than 3,000 wells between the Eagle Ford and Austin Chalk shales in south Texas and in Latin America.
The new Oilfield Services Division will be led by Matthew O'Neill, head of LEC's Completion & Well Intervention Services. Mr. O'Neill has worked in the oil and gas industry for 27 years and has been with the Company since 2015. He has held various roles in the industry, from a wireline field engineer up to senior management, and has worked across Europe, the Middle East, west Africa, North America and Latin America. Prior to LEC, Mr. O'Neill worked for the global oilfield services company, Schlumberger.
The Company looks to mobilize its equipment and personnel in the fourth quarter of 2024.
About LNG Energy Group
The Company is focused on the acquisition and development of oil and gas exploration and production assets in Latin America.
For more information, please see below:
Website: www.lngenergygroup.com
Investor Relations:
James Morris, Vice-President, Business Development and Investor Relations
Email: investor.relations@lngenergygroup.com
Telephone: 205-835-0676
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LinkedIn: https://www.linkedin.com/company/lng-energy-group-inc/
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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", "should", "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.
