FULL DISCLOSURE: Canacom Group is long the equity of LNG Energy.

LNG Energy Group (TSXV: LNGE) has launched a new division in an effort to diversify its operations. The new division, launched under its subsidiary Lewis Energy Colombia, is intended to conduct oilfield services in the region.

The launch of the division is said to be a direct result of the company already owning and operating three rigs that are capable of executing well services. The rigs, two of which are drill rigs and the remainder being a workover rig, are capable of working on both new exploration as well as development wells.

The current drill equipment, which include a 1,600 HP and a 1,000 HP top-drive drill rig, and a 550 HP workover rig, is based at the Sinu-San Jacinto Norte-1 Block near to Barranquilla Colombia. The equipment is said to be complete with supporting equipment needed to fully execute drilling and workover equipment, with the entire asset package valued at roughly US$10 million.

“LEC is a one-of-a-kind operator with the equipment, personnel and expertise to offer turnkey drilling and workover solutions. 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,” commented LNG Energy CEO Pable Navarro.

Equipment are personnel under the new division are expected to be mobilized in the fourth quarter of 2024.

LNG Energy last traded at $0.19 on the TSX Venture.

FULL DISCLOSURE: Canacom Group, the parent company of The Deep Dive is long the equity of LNG Energy Group. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.