Criterium conducts initial flow test at N-MGH gas field

Executive Summary

• Criterium Energy reported positive preliminary flow test results from the North Mengoepeh (N-MGH) gas field, with well MGH-20 testing at 2.5 million cubic feet per day (mmcf/d), suggesting commercial flow rates.
• The company provided preliminary Q2 2025 operating results, showing average field production of 890 barrels per day (bbl/d), an increase from 821 bbl/d in Q2 2024, driven by a successful 15-well workover campaign.
• Management outlined a strategic shift toward gas development, targeting first gas from Southeast Mengoepeh (SE-MGH) in Q1 2026, with an estimated capital expenditure of $3 million to $5 million to reach this milestone.

Key Details

• N-MGH Gas Test Results:
  • Well MGH-20 (re-entered from 2014) tested 2.5 mmcf/d through an 8/64ths-inch choke over 24 hours.
  • Initial 24-hour test at 4/64ths-inch choke yielded 2.1 mmcf/d with First Tubing Head Pressure (FTHP) of 500 psi.
  • Subsequent 24-hour test at 8/64ths-inch choke yielded 2.5 mmcf/d with FTHP of 360 psi.
  • Liquid carryover included 309 barrels of oil and water; oil had an API of 30.3 and a pour point of 40°C.
• Q2 2025 Operational Metrics:
  • Average field production in the Tungkal PSC: 890 bbl/d (up from 821 bbl/d in Q2 2024).
  • Direct operating costs: $2.7 million USD ($33 USD per bbl).
  • Operating netbacks: $22 USD per bbl.
  • Premium to Brent: Average $3 USD per bbl.
  • Production reduction: Approximately 60-80 bbl/d lost due to pump failures in the Pematang Lantih field in June.
• SE-MGH Development:
  • Focus is on re-entry operations and extended well testing commencing in Q3 2025.
  • Previous test of SE-MGH well produced 8 mmcf/d over approximately five days through a 40/64ths-inch choke.
  • Contingent resources at SE-MGH: 15 billion cubic feet (bcf).
  • Estimated initial production: 5-7 mmcf/d (900-1,250 boe/d).
  • Capital guidance to reach first gas: $3 million to $5 million USD net to Criterium.
• Future Gas Assets & Resources:
  • Macan Gedang: 2C gas resource of 13 bcf; well tested at 5 mmcf/d (approx. 2 days, 4.6 mmcf/d through 48/64ths-inch choke). Targeting production late 2026/early 2027.
  • Cerah: Best case prospective resources of 26 bcf.
  • MGH-43: Volumes under evaluation.
  • Development strategy includes tying into Teluk Rendah gas plant via pipeline or using Modular LNG technology.
• Financial & Strategic Updates:
  • Negotiated debt repayment holiday with lenders through the balance of 2025 to focus on gas development.
  • Projected unit operating cost reduction of 40-50% to $16-$18 USD per boe upon gas development.
  • Historical gas pricing in South Sumatra ranges between $5-$7 USD per mmBtu on long-term fixed take-or-pay basis.
• Bulu Transaction Update:
  • Criterium notified KrisEnergy (Satria) Ltd. of breaches and deficiencies in the Joint Operating Agreement (JOA) regarding the lack of development of the Lengo gas field.
  • Criterium intends to take further action under the JOA if deficiencies are not remedied.

Notable Quotes

• "We have recently made meaningful forward progress on our gas development program with positive initial results at N-MGH expected to be additive to our gas production volumes in 2026... A successful test of SE-MGH will underpin a gas sales agreement and pipeline development that will allow us to achieve first gas in early 2026." — Matthew Klukas, President and CEO
• "The positive test at N-MGH suggests the emergence of building gas potential for Criterium that can help grow our production and business over the near, mid and longer term while supporting the strong appetite and market for domestic natural gas in Indonesia." — Matthew Klukas, President and CEO