Criterium Energy Announces Successful Re-Entry and Test of SEM-01 and Releases Q2 Financial Results

Executive Summary

• Criterium Energy announced successful extended well test results for the SEM-01 well in the Southeast Mengoepeh (SE-MGH) field, achieving rates of 7-8 mmcf/d, supporting the development of 15 bcf of contingent resources.
• The company released unaudited financial results for Q2 2025, reporting positive cash flow from operations of C$674 thousand despite a 15% reduction in oil prices and production issues at the PLT field.
• Management reduced the total project capital guidance for SE-MGH to US$2.5-$4 million, maintaining the target for first gas in Q1 2026, while also highlighting potential from the N-MGH field and future assets like Macan Gedang.

Key Details

• SEM-01 Well Test Results:
  • Sustained rates of 7 mmcf/d at a 40/64" choke and up to 8 mmcf/d at a 48/64" choke.
  • Test included a clean-up period producing 7.9 mmcf/d through a 48/64" choke with 706 psig Well Head Pressure (WHP) for 4 hours.
  • 3-stage completion test details:
    • Stage 1: 24/64" choke, 3.0 mmcf/d, 1,150 psig WHP for 48 hours.
    • Stage 2: 32/64" choke, 5.1 mmcf/d, 1,070 psig WHP for 48 hours.
    • Stage 3: 40/64" choke, 7.1 mmcf/d, 960 psig WHP for 48 hours.
  • Choke size was not increased further due to surface facility limitations; results align with 2001 tests and support reserve certification.
• N-MGH Field Test:
  • MGH-20 tested 2.5 mmcf/d with associated oil, suggesting commercial flow rates.
  • 24-hour test details: 2.1 mmcf/d through 4/64" choke (FTHP 500 psi) and 24 hours at 2.5 mmcf/d through 8/64" choke (FTHP 360 psi).
  • Recovered 215 bbls of oil (API 30.3, pour point 40°C).
• Financial Performance (Q2 2025):
  • Positive cash flow from operations: C$674 thousand.
  • Operating costs remained stable at C$36/bbl.
  • Petroleum sales: C$7,542 thousand (down from C$14,636 thousand in Q1 2025).
  • Net Income: (C$1,237) thousand.
  • Capital Expenditures: (C$714) thousand.
  • Average daily production: 890 boe/d.
  • Operating Netback: C$43.04/bbl.
• Project Economics and Timeline:
  • Total project costs for SE-MGH reduced to US$2.5-$4 million (previously US$3-$5 million); US$1.2 million incurred to date.
  • Target first gas for SE-MGH in Q1 2026.
  • Expected production range: 5-7 mmcf/d (900-1,250 boe/d).
  • Estimated capital expenditure to reach first gas: ~US$3,000 per flowing boe/d.
  • Projected unit operating cost reduction of 40-50% to US$16-18/boe.
• Future Development Plans:
  • N-MGH: Parallel development planned to utilize SE-MGH infrastructure; initial test suggests potential for increased total gas production.
  • Macan Gedang: Contingent resources of 13 bcf; Macan Gedang-1 well tested at 5 mmcf/d (4.6 mmcf/d through 48/64" choke for ~2 days). Targeting production in late 2026 or early 2027.
  • Cerah: Best case prospective resources of 26 bcf; gas shows encountered in 2008 but not tested.
  • MGH-43: Gas shows encountered during drilling; volumes under evaluation.
  • Infrastructure: Development via new 14 km pipeline to Teluk Rendah Gas Plant; funding expected from third party underpinned by a Gas Sales Agreement (GSA).
• Commercial Strategy:
  • Focus on long-term fixed-price Gas Sales Agreements (GSAs) with domestic Indonesian offtakers to mitigate oil price volatility.
  • Recent comparable contracts in South Sumatra ranged between US$5-$7/mmbtu on a long-term fixed take-or-pay basis.
  • Formal discussions commenced with a credible domestic Indonesian offtaker.

Notable Quotes

• "The successful re-entry and extended well test at SEM-01 marks a key milestone in our gas development program. With test rates reaching up to 8 mmcf/d and strong pressure support, the SE-MGH field is positioned to be the cornerstone of our near-term gas growth," said Matthew Klukas, President and CEO of Criterium Energy.
• "The combination of stable gas cash flow from SE-MGH and N-MGH with our existing oil production will materially transform Criterium in 2026-strengthening our balance sheet, enhancing per-share cash flow, and funding a capital program to unlock additional gas and oil opportunities across our portfolio."