LNG Energy Group Establishes New Oilfield Services Division
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LNG Energy Group Establishes New Oilfield Services Division
LNG Energy Group Corp. (TSXV: LNGE) (TSXV: LNGE.WT) (OTCQB: LNGNF) (FWB: E26) is excited to announce the creation of its new Oilfield Services Division at its wholly owned subsidiary, Lewis Energy Colombia, Inc. (LEC). Distinct from many other E&P companies, LEC owns and operates three sophisticated rigs, including two drilling rigs and one workover rig, which are capable of executing a diverse range of well services, including the drilling of new exploration and developmental wells.
Leadership's Perspective
“LEC is a unique operator equipped with the necessary equipment, personnel, and expertise to provide comprehensive drilling and workover solutions,” stated Pablo Navarro, Chairman and Chief Executive Officer of LNG Energy Group. “By establishing and deploying the Oilfield Services Division, LEC aims to generate an additional revenue stream while strengthening its role as a crucial player in the energy sector in Colombia.”
Understanding the Colombian Natural Gas Market
The Colombian natural gas market is currently grappling with a notable supply-demand imbalance, which has been further intensified by the El Niño phenomenon. This climatic event has resulted in reduced rainfall and corresponding drops in hydroelectric power generation, increasing dependence on natural gas-fired power plants. In the absence of immediate capacity enhancements for imports, Colombia is poised to meet its escalating domestic natural gas needs through additional exploration and the development of natural gas fields. This shift is likely to enhance the demand for efficient drilling services and experienced service providers.
The Requirement for Enhanced Services
This burgeoning demand in Colombia’s energy sector underscores the urgent need for effective drilling operations and experienced teams. Companies with the capability to offer timely and precise drilling services will be essential in navigating the market's challenges.
Details on the Rig Operations
LEC’s operational capabilities are now bolstered by three comprehensive rigs stationed in the Sinú-San Jacinto Norte-1 Block. These include a 1,600 HP top-drive drilling rig, a 1,000 HP top-drive drilling rig, and a 550 HP workover rig. Equipped with generators, pumps, BOPs (blowout preventers), mud systems, tanks, and other essential equipment, these rigs collectively hold an estimated market value of around U.S.$10 million.
Operational Excellence and Experience
Since entering the Colombian market in 2008, LEC has drilled 70 exploration and production wells and conducted numerous workover operations with its internal equipment. The company's wildcat success rate is notably nearly double the industry average, achieved through the relentless efforts of an expert in-house team that has collectively drilled over 3,000 wells across various international sites, prominently in the Eagle Ford and Austin Chalk shales in South Texas, as well as in distinct parts of Latin America.
Leadership of the New Division
The newly established Oilfield Services Division is set to be led by Matthew O’Neill, the head of LEC’s Completion & Well Intervention Services. With 27 years of experience in the oil and gas sector, O’Neill has been a pivotal member of the company since 2015. Over his career, he has occupied multiple roles from a wireline field engineer to senior management, gaining hands-on experience across Europe, the Middle East, West Africa, North America, and Latin America. Prior to his tenure with LEC, Mr. O’Neill served at Schlumberger, a globally recognized oilfield services company.
Looking Forward to Mobilization
The Company has strategic plans to mobilize its equipment and expertise in the upcoming fourth quarter, marking a pivotal moment for expanding its service capability in the Colombian oilfield services landscape.
About LNG Energy Group
The Company remains focused on acquiring and developing oil and gas exploration and production assets specifically within the Latin American region. This strategic approach is tailored to tap into the region's growing energy needs while enhancing its operational framework.
Frequently Asked Questions
What is the Oilfield Services Division of LNG Energy Group?
The Oilfield Services Division focuses on providing comprehensive drilling and workover services to enhance operational capabilities in Colombia.
How does LEC's rig operation differ from other companies?
LEC operates its own drilling and workover rigs, offering a unique blend of equipment and expertise not commonly found in the energy market.
What challenges does the Colombian natural gas market face?
The market faces a supply-demand imbalance aggravated by climatic factors that necessitate increased exploration and development of natural gas fields.
Who leads the new Oilfield Services Division?
Matthew O’Neill, who has significant experience in the oil and gas sector, will lead the new division.
When does LNG Energy Group plan to mobilize its equipment?
The Company aims to mobilize its equipment and personnel in the fourth quarter of 2024.
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