Criterium Energy Provides Gas Development Update and Releases Q3 Financial Results

Executive Summary

• Criterium Energy reports positive operating cash flow of C$333 k in Q3 2025 despite a net loss, and confirms first gas from the SE‑MGH project is on track for H1 2026.
• Project capital requirements have been trimmed to US$2–3 M (US$1.7 M spent) with pipeline construction slated to start early 2026; a Letter of Intent has been signed with PT Dredolf Indonesia.
• Extended well test results show SE‑MGH delivering 7–8 mmcf/d (peak 8 mmcf/d) and N‑MGH testing 2.5 mmcf/d, supporting a projected production plateau of 5–7 mmcf/d for SE‑MGH.

Key Details

• SE‑MGH Well Test (SEM‑01):
• Produced 7 mmcf/d at 40/64" choke; up to 8 mmcf/d at 48/64" choke.

• Supports a base‑case production plateau of 5–7 mmcf/d (6 mmcf/d average assumed for six years).

• Project Budget:

• Revised total cost: US$2–3 M (down from US$3–5 M).
• Expenditures to date: ~US$1.7 M.

• Remaining spend: land acquisition & pipeline (~US$1 M) + contingencies (~US$1 M).

• Pipeline Development:

• LOI signed with PT Dredolf Indonesia for SE‑MGH pipeline (≈14 km).
• Construction to commence early 2026; Dredolf will fund/build, Criterium pays monthly transport fee.

• Gas sales price target: US$6–7/MMBtu (aligned with recent South Sumatra contracts).

• N‑MGH Update:

• Initial flow test of MGH‑20 produced 2.5 mmcf/d at 8/64" choke, plus ~215 bbls oil.

• Additional zone perforations planned Q1 2026; total capital requirement estimated <US$1 M.

• Bulu PSC & Lengo Field:

• MOU signed with PT Kalimantan Jawa Gas (KJG) to use KJG Pipeline for Lengo gas transport.

• Lengo holds an estimated 2C contingent resource of ~360 bcf; Criterium owns 42.5% working interest.

• Q3 2025 Financial Highlights (CAD $000):

• Petroleum sales: 6,898 (down from 7,542 YoY).
• Operating cash flow: 333 (positive vs. 164 prior quarter).
• Net loss: (3,760) (wider than prior quarter).
• Capital expenditures: (696).

• Average daily production: 784 bbl/d (below forecast due to mechanical issues now resolved).

• Operating Netback:

• Netback per barrel: C$31.71 (down from C$43.04 YoY).

• Outlook & Milestones (next 12 months):

• Finalize long‑term Gas Sales Agreement and related commercial contracts.
• Commence SE‑MGH pipeline construction; follow with N‑MGH pipeline.
• Achieve first gas from SE‑MGH (5–7 mmcf/d) in H1 2026, followed by N‑MGH contribution (2–3 mmcf/d).
• Continue stakeholder engagement for Bulu PSC and Lengo field development.

Notable Quotes

• “SE‑MGH will be a transformational cornerstone… strengthening cash flow per share growth.” – Matthew Klukas, President & CEO
• “We remain on track and below budget to achieve first gas from SE‑MGH in the first half of 2026.” – Matthew Klukas

All forward‑looking statements are subject to risks and uncertainties detailed in the release.