NG Energy International Corp. announced that, as part of the recently announced environmental license, the National Authority of Environmental Licenses ("ANLA") has approved the Company's petition for the drilling of 22 wells and the associated work programs for the construction of associated surface infrastructure, including roads and pads, for those wells covered within the SINU-9 environmental license. With the receipt of ANLA approval, the Company has commenced efforts for these surface construction projects. Following the Company's press release on September 10, 2021, which announced receipt of the SINU-9 environmental license, the Company's management team has decided to start the SINU-9 phase 1 drilling campaign in the northern area of the field (the "North Area") as it is the most prospective area from a resources standpoint, with an access road already in place requiring less time for initial civil work before drilling operations commence. Accordingly, the first two wells in the Company's fully-funded four-well drill program will be focused in the North Area. According to the Resources Report released by Petrotech Engineering Ltd. earlier this year, dated December 31, 2020, 51.4 BCF of Unrisked Contingent Resources and 269 BCF of Unrisked Prospective Resources (at 100% WI) were confirmed in the North Area. The Company has commenced design planning for modifications to the existing road and construction of the new pad in anticipation of the drilling of the Hechizo Norte-1 well, which will immediately be followed by the drilling of the Hechizo Este-1 well, in the first months of 2022. Under the direction of CPVEN, a suitable drilling rig has been contracted and all steps in relation to drilling permits through the national authorities is underway. In accordance with the terms of the Aruchara loan entered into by the Company in December 2019 for debt proceeds of US$1.6 million, the lenders have opted to exercise their option to convert the balance of the outstanding loan (being the loan principal and accumulated interest since inception) to a 2.5% overriding royalty on the Company's beneficial interest of petroleum and natural gas production from the Maria Conchita Block. With this option exercise by the lenders, the balance of the Aruchara loan is considered settled with no further financial obligations to the lenders retained by the Company.