LNGE LNG Energy Group Corp

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 RelationsEmail: investor.relations@lngenergygroup.com 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”, “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.