FULL DISCLOSURE: This is sponsored content for LNG Energy Group.
LNG Energy Group (TSXV: LNGE) is slated to begin trading this morning on the TSX Venture Exchange under the symbol LNGE. The listing follows a strategic transaction with Mind Cure, which has seen a reverse takeover occur.
“Listing on the TSXV marks an important milestone for LNG Energy Group. The TSXV was the natural choice for listing given its focus on natural resources globally as we are a leading natural gas producer in Colombia with aspirations to grow throughout Latin America. Additionally, the TSXV listing represents the first step to growing our presence in the Canadian and North American capital markets,” commented CEO Pablo Navarro on the achievement.
The company is focused on the development of its operation within Colombia, where it currently operates a network of natural gas production assets. Originally founded as Lewis Energy Colombia, the company traces its roots in the region back to 2008, when it first entered production on the SSNJ-1 Block.
In the time since, the company has explored and developed a number of claim blocks within the country, including the Bullerengue field, after its discovery in 2015. The company in 2021 shifted to a natural gas strategy, with the focus of developing three blocks it recently acquired.
In terms of current assets, LNG Energy produces 36 MMCFD at the SSJN-1 property, which boasts 139 Bcfe of Net 3P Reserves, for which the company has a 50% interest. The property currently features ten producing wells, along with two non-producing.
Appraisal and development is currently underway at the VIM-41 block, under which the company has a 100% working interest. VIM-41 has 93 Bcfe of net 3P reserves. Appraisal and development is also underway at Perdices, which the company has a 50% working interest in, and which features 34 Bcf of prospective reserves.
Exploration-stage assets meanwhile consist of SSJN 3-1, which is said to have over 150 Bcfe of resource potential, and VIM-42, which has 405 Bcf of prospective resources. LNG Energy has a working interest of 50% in both of these assets.
In terms of future development, the filing statement of the company indicates that it intends to drill two wells in 2023, nine wells in 2024, and a total of eighteen wells in 2025 to expand its existing reserve base, although the final investment decision for some of those wells is dependent on earlier successes.
The share structure of the company meanwhile breaks down as follows.
Of the 155.1 million shares outstanding, 76.5 million are subject to escrow requirements, along with 28.0 million warrants of the issuer.
FULL DISCLOSURE: LNG Energy Group is a client of Canacom Group, the parent company of The Deep Dive. Canacom Group is currently long the equity of LNG Energy Group. The author has been compensated to cover LNG Energy Group on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.
