LNG Energy Group Corp. Extends the Binding Exclusivity Agreement and Letter of Intent to Establish a US$200 Million Strategic JV to Fund Oil and Gas Investments in Venezuela
Rhea-AI Summary
LNG Energy Group (OTC:LNGNF) has extended to November 30, 2026 its binding exclusivity agreement and Letter of Intent with Fifth Ocean Management LP, in partnership with Westlawn Group, while the parties complete due diligence, satisfy conditions precedent and negotiate definitive documentation for a proposed joint venture.
The planned JV Company, to be organized in the United States and owned 50/50 by LNG Energy Group and Fifth Ocean, would invest in oil and gas exploration and development projects in Venezuela. LNG Energy Group would contribute its existing Venezuelan oil and gas assets, while Fifth Ocean would fund an investment program of up to US$200 million to increase production and potentially acquire additional assets.
The Transaction remains subject to due diligence, definitive agreements, customary closing conditions and required regulatory approvals, including from OFAC, the Ontario Securities Commission and the TSX Venture Exchange. The JV Company also plans a pilot program with Salamander Solutions to deploy advanced heating technology aimed at evaluating and unlocking heavy oil resources, with all activities to comply with applicable U.S. sanctions laws and OFAC authorizations.
Positive
- Proposed 50/50 JV with up to US$200 million funding commitment from Fifth Ocean for Venezuela investments
- LNG Energy Group to contribute existing Venezuelan oil and gas assets into dedicated JV structure
- Planned technology pilot with Salamander Solutions to assess and unlock heavy oil resources in JV assets
Negative
- Transaction subject to completion of due diligence and negotiation of definitive documentation within exclusivity period
- Closing contingent on multiple regulatory approvals, including OFAC, Ontario Securities Commission and TSX Venture Exchange
AI-generated analysis. How Rhea-AI works. Not financial advice.
Not for distribution to United States newswire services or for dissemination in the United States
TORONTO, ON / ACCESS Newswire / September 1, 2026 / LNG Energy Group Corp. (TSXV:LNGE)(TSXV:LNGE.WT)(OTC PINK:LNGNF)(FWB:E26) (the "Company" or "LNG Energy Group") announces that, further to its news release dated May 26, 2026, it has reached an agreement with Fifth Ocean Management LP, in partnership with Westlawn Group (together, "Fifth Ocean"), to extend the term of the binding exclusivity agreement and Letter of Intent ("LOI") to November 30, 2026 while the parties finalize due diligence, seek to satisfy all conditions precedent and negotiate in good faith definitive transaction documentation.
Under the terms of the previously announced proposed joint venture, the parties will establish a new joint venture company (the "JV Company") organized in the United States to invest in oil and gas exploration and development projects in Venezuela. The JV Company will be owned 50/50 between the Company and Fifth Ocean, the Company will contribute existing oil and gas assets in Venezuela, and Fifth Ocean will fund an investment program of up to US
The Transaction is subject to the completion of due diligence and certain conditions precedent including the negotiation and entry into the mutually acceptable definitive documentation within the binding exclusivity period. Closing of the Transaction is subject to customary conditions precedent, required regulatory approvals (including applicable Office of Foreign Assets Control ("OFAC"), Ontario Securities Commission and TSX Venture Exchange) and customary contractual approvals.
The JV Company will also partner with Salamander Solutions Inc. ("Salamander") on a pilot program to deploy Salamander's advanced heating technology in Venezuela. The technology partnership between the JV Company and Salamander will be leveraged to evaluate and unlock prospective heavy oil resources in the assets of the JV Company.
About LNG Energy Group
The Company focuses on the acquisition and development of hydrocarbons production and exploration assets in Latin America. For more information, please visit www.lngenergygroup.com.
For more information please contact:
Angel Roa, Chief Financial Officer LNG Energy Group Corp.
Website: www.lngenergygroup.com
Email: investor.relations@lngenergygroup.com
Phone: (305) 464-6362
Find us on social media:
LinkedIn: https://www.linkedin.com/company/lng-energy-group-inc/
Instagram: @lngenergygroup
X: @LNGEnergyCorp
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 that reflect the current views and/or expectations of management of LNG Energy Group with respect to performance, business and future events. Forward-looking statements in this press release include, but are not limited to, statements relating to: the execution and completion of the proposed Transaction; the finalization of definitive agreements; the total committed investment program of up to US
SANCTIONS COMPLIANCE NOTE:
The proposed Transaction involves assets located in Venezuela. The parties have acknowledged that all activities in connection with the Transaction will be conducted in full compliance with applicable U.S. sanctions laws and regulations, including those administered by OFAC. The Company will only proceed with the activities in connection with the Venezuela assets in accordance with OFAC authorizations.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE: LNG Energy Group Corp.
View the original press release on ACCESS Newswire