LNG Energy Group Announces Letter of Credit Facility with Macquarie Group

Highlights:

• U.S.$13.3 million uncommitted letter of credit facility to fund exploration and development work commitments with the ANH.
• LNG Energy Group proves it can access non-dilutive capital to help grow its business in Colombia.

TORONTO, Oct. 17, 2023 (GLOBE NEWSWIRE) — LNG Energy Group Corp. (TSXV: LNGE) (TSXV: LNGE.WT) (OTCQB: LNGNF) (FRA: 6MH) (the “Company” or “LNG Energy Group”) is pleased to announce that a wholly-owned subsidiary of the Company, LNG Canada Holdco Inc. (the “Borrower”) has entered into a letter of credit facility (the “LC Facility”) with Macquarie Group (“Macquarie”) in the aggregate principal amount of U.S.$13.3 million in order to fund its work commitment guarantees for its exploration and development blocks in Colombia. Lewis Energy Colombia, Inc. (the “Guarantor”), a wholly-owned subsidiary of the Borrower, has entered into the LC Facility as a guarantor. The LC Facility includes customary representations and warranties, events of default and change of control provisions substantially similar to those set out in the U.S.$70 million credit agreement (the “Credit Agreement”) entered into by the Borrower, Guarantor and Macquarie, including with respect to senior security over the assets of the Borrower and Guarantor. The letters of credit funded by the LC Facility will be used to guarantee work commitments under the Company’s contracts with the Agencia Nacional de Hidrocarburos (“ANH”) in Colombia.

“This LC Facility frees up significant balance sheet capital that will be put to work in our drilling campaign and marks the latest milestone in LNG Energy Group’s evolution,” commented Pablo Navarro, Chairman and Chief Executive Officer of LNG Energy Group. “The LC Facility is an important financial tool for us to be able to secure our acreage position on a non-dilutive basis. We are able to fund ANH guarantees using letters of credit drawn on the LC Facility.”

“We are pleased to provide this LC facility to the LNG Energy team to continue supporting our client’s growth plan,” commented Catalina Hayata, Managing Director and Head of Latin America Private Credit in Macquarie Group’s Commodities and Global Markets business.

About LNG Energy Group

The Company is focused on the acquisition and development of natural gas production and exploration assets in Latin America. For more information, please visit www.lngenergygroup.com. 

LNG Energy Group Corp.
James Morris, Vice-President, Business Development and Investor Relations
Email: investor.relations@lngenergygroup.com

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