The Colombian branch of LNG Energy Group Corp. has officially exited the Proceso de Recuperación Empresarial (PRES), Colombia’s insolvency protection framework under Law 2437 of 2024. A reorganisation agreement was approved by more than 70% of creditors, including over 90% employee support. This approval allows the company to retain PRES protections pending final judicial validation, currently under review by the Superintendencia de Sociedades.
The agreement outlines a staggered repayment schedule over 39 quarters, with final maturity around 2034. It also allows for accelerated payments depending on the company’s future financial capacity. The request for judicial validation, filed on October 23, solidifies the company’s efforts to restore solvency under regulated procedures.
Debt reduction through asset transfer
LNG Energy Group also announced the settlement of a $10.7mn debt with Lewis Energy Group. The obligation originated from agreements signed in August 2023 related to an asset acquisition. The total debt amounted to $19.1mn, of which $8.3mn had already been repaid. The remaining balance was settled through the transfer of several physical assets, avoiding any enforcement of the collateral rights defined in the original agreements.
Transferred assets included three drilling units – Rig 16, Rig 22, and Rig 6 – along with heavy equipment classified as “yellow iron.” These assets were valued by an independent appraiser in October 2023 and recorded at a net book value of $7.35mn in the company’s September 2025 trial balance.
Production maintained despite technical declines
Operationally, the company reported an average production of 9.2 million cubic feet per day (Mmcf/d) in the third quarter, and 11.9 Mmcf/d year to date. Average realised sales prices were $10.7 and $9.8 per thousand cubic feet (Mcf), respectively. LNG Energy Group observed a performance drop on some wells due to preliminarily identified subsurface factors.
Management stated these issues have not impacted the estimated original gas in place. The company continues to evaluate and implement corrective actions to optimise operational value and stabilise production in the coming months.
Ongoing regulatory restriction
LNG Energy Group remains subject to a cease trade order for failing to file its audited financial statements for the fiscal year ended December 31, 2024. The company plans to submit the required documents, including management’s discussion and analysis and executive compliance certificates, in line with Canadian National Instrument 52-109.
These submissions will constitute the formal request to revoke the order, although no assurance has been given regarding the timeline. Meanwhile, the company continues a strategic review aimed at strengthening its financial structure, reducing debt, and enhancing production capacity in the medium term.
