Ng Energy International Corp · TSX:GASX
Ng Energy International — Investor Presentation (January 2021)
25 slides from Ng Energy International's investor presentation, Jan 15, 2021
Slide 1: Fueling Colombia's Clean Energy Transition
FUELING COLOMBIA’S CLEAN ENERGY TRANSITION January 2021 TSX.V:GASX | OTC:GASXF | FRA:56PQ
Slide 2: NG | Disclaimer
NG | Disclaimer This presentation of NG Energy International Corp. (the “Company” or “NG”) is for information only and shall not constitute an offer to buy, sell, issue or subscribe for, or the solicitation of an offer to buy, sell or issue, or subscribe for any securities in any jurisdiction in whi
Slide 3: NG | Investment Highlights
NG | Investment Highlights Strong Pricing with Long-term Take or Pay Contracts • High natural gas prices due to decreasing supply and increasing demand in Colombia • State owned utilities provide high quality, credit worthy counterparties for offtake agreements • Advanced negotiations to lock in fix
Slide 4: NG | Management & Board
NG | Management & Board ✓ Colombian based management team with significant in-country experience ✓ Strong technical experience within Colombian basins ✓ Strong capital markets expertise having led large public resource companies in the past Management Ronald Pantin • Co-founder, CEO, and Executive D
Slide 5: NG | Market Data
NG | Market Data Capitalization Share Price Performance Ticker TSX.V: GASX 6 Months 3 Months 1 Month Share Price (Jan 13, 2021) $1.30 400% 5% 71% Basic Shares 89.6 FD Shares(1) 110.9 I FD Market Cap. 144.2 Net Debt(2) (1.4) C Enterprise Value 142.8 D H 30 Day Average Volume 167,000 F E Insider Owner
Slide 6: Colombia | Decreasing Supply, Increasing Demand
Colombia | Decreasing Supply, Increasing Demand Decreasing Natural Gas Supply(1) LNG Import Shipments(3) • Declining legacy fields; production and reserves 9 declining at 7% per year; national reserve life index 6 only 12 years • Colombia LNG import facilities are lacking Increasing Demand On-Trend
Slide 7: Colombia | Country Update
Colombia | Country Update Leadership 2019 Corruption Perceptions Index(1) • Ivan Duque won the presidential election in June 2018 87 • Mr. Duque is seen as pro-business, vowing to 77 69 support the oil and gas industry, which he sees as a major pillar of growth 45 • Business professionals rather tha
Slide 8: NG | Asset Overview
NG | Asset Overview ✓ Strong de-risked asset base in well known producing areas adjacent to Canacol assets ✓ Located in a very stable area of the country ✓ Close to significant national infrastructure Tiburon (10-40% WI) 2 Tcf Best Case Estimate(2) Maria Conchita (80% WI) 400 MMcf/d Best Case Peak P
Slide 9: Maria Conchita | Asset Overview
Maria Conchita | Asset Overview • Maria Conchita field is in the Guajira Basin on Maria Conchita Drilling & Re-Entry Plan Colombia’s Caribbean coast, 14 km from the TGI Main pipeline Aruchara-1 1 Istanbul-1 2 Tinka-1 3 • Maria Conchita neighbors the Chuchupa field, • Successful re-entry • Scheduled
Slide 10: SINU-9 | Flagship Upside Property
SINU-9 | Flagship Upside Property • Potential for 1 Tcf of gas(1) • Canacol’s block to the west has booked natural gas reserves of 559 Bcf and production of 200 MMcf/d • Hocol drilled the Arrecife well on its property to the south-east of NG. Test results showed gas production of 3-10 MMcf/d with no
Slide 11: SINU-9 | Exploration Approach
SINU-9 | Exploration Approach Phase 1 Exploration Development Area • Wells are drilled to 4,500 to 6,000 feet over 25 to 30 days for a total costs of US$4 to $6 million 3D Seismic for Exploration and Magico 1 Mago 2 Hechicero 3 Hechizo-1 4 Development 2021 4. Hechizo-1 Near term • New drill • New dr
Slide 12: NG | Development Timeline
NG | Development Timeline 2021 Q1: • Re-entry into Istanbul-1 well at Maria Conchita • Complete Maria Conchita pipeline • Maria Conchita production begins from Aruchara-1 well 2021 Q2: • Drilling and testing of Magico and Mago wells at SINU-9 2021 Q3: • SINU-9 production begins from Magico and Mago
Slide 13: NG | High Quality Offtake Counterparties
NG | High Quality Offtake Counterparties • NG has obtained letters of intent for take or pay contracts with Colombian gas utilities Natural Gas Traders Largest Utility Companies in Colombia Volume: ~10 MMcf/d Volume: ~14 MMcf/d Note: See "Forward-looking statements" on slide 2 TSX.V:GASX // 13
Slide 14: Tiburon | Blue Sky
Tiburon | Blue Sky Santa Ana-1 (Mobil) ✓ The Tiburón block is in the Upper Guajira on Colombia’s Caribbean coast, and holds source rock with kerogens Type III, gas prone for Tertiary sequence and Type II, and oil prone for Cretaceous sequence ✓ It belongs to the same basin as the Chuchupa block to i
Slide 15: Tiburon | Blue Sky
Tiburon | Blue Sky Two Leads ~ 2 TCF each Bahia Honda Puerto Bolivar Coal terminal Bahia de Portete TSX.V:GASX // 15
Slide 16: Tiburon | Highly Prospective Structures
Tiburon | Highly Prospective Structures Perla Discovery Orca-1 Discovery Tiburón Lead 1 Lead 2 TSX.V:GASX // 16
Slide 17: Gracias!
Gracias!
Slide 18: Appendix
Appendix
Slide 19: LNG | Global Natural Gas Prices
LNG | Global Natural Gas Prices $ / Mcf AECO Spot $2.23 Belgium UK LNG $3.02 LNG $2.54 ~9 days South Korea ~12 days LNG $6.73 Henry Hub Spot $2.26 Japan Spain LNG $6.73 LNG $4.39 ~26 days ~22 days ~5 days ~11 days ~22 days LNG $5.37(2) Global LNG Pricing • As opposed to crude oil, LNG does not featu
Slide 20: Colombia | Long-term Supply Shortage
COLOMBIA | Long-term Supply Shortage The supply-demand balance indicates a deficit since January 2024 Caribbean Market Interior Market Source: MME, Concentra, UPME TSX.V:GASX // 20
Slide 21: Maria Conchita | Seismic Interpretation
Maria Conchita | Seismic Interpretation Poisson Ratio AVO Attribute: H2B Anomaly & New Locations to be drilled Tinka-1 Aruchara-1 TSX.V:GASX // 21
Slide 22: Maria Conchita | Project Layout
Maria Conchita | Project Layout Natural Gas Treatment Facilities 1. Water separator 2. Glycol Unit 3. Three-phase separator 4. Coalescing filter Skid Note: Compressors may not be required depending on the well pressure. TSX.V:GASX // 22
Slide 23: SINU-9 | Seismic Interpretation
SINU-9 | Seismic Interpretation SINU-9 Seismic Attributes Show Clear Direct Hydrocarbon Indicators (DHI) TSX.V:GASX // 23
Slide 24: NG | Permits & Licenses
NG | Permits & Licenses Transportadora de Gas Internacional (TGI) Transportadora de Gas Internacional, ready-to-build approved connection point to gas pipeline. Corporación Autónoma Regional de la Guajira The public entity of the Colombian government with full autonomy, in charge of the public admin
Slide 25: Colombia | Supply-Demand Dynamic Causing Premium Pricing
Colombia | Supply-Demand Dynamic Causing Premium Pricing • Domestic market supply deficit has led to locally producing companies selling at a significant premium to North American prices • Realized gas prices in Colombia are stable and have maintained around $5.00 / Mcf since 2015 • Canacol, Colombi
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