Criterium Energy Provides Tungkal PSC Update and Outlines 2026 Budget

Executive Summary

• Criterium Energy announced a pipeline contract and progress toward a binding Gas Sales Agreement with PGN, positioning SE‑MGH to deliver first gas in Q2 2026 at 5–7 mmcf/d.
• Project capex for SE‑MGH has been trimmed to US$2 million (US$1.9 M incurred), fully funded and expected to be cash‑flow positive upon first gas.
• Successful well tests at SE‑MGH (up to 8 mmcf/d) and N‑MGH (2.5 → 2.1 mmcf/d) support a material increase in the company’s gas resource base, with reserve updates slated for Q1 2026.

Key Details

• Pipeline Contract: Signed 30 Jan 2026 with PT Dredolf Indonesia for a 21‑km, six‑inch gas pipeline (initial 14 km expanded to replace 7 km failed segment). Construction began 2 Feb 2026; Dredolf will fund, build, operate, and maintain the line under a 10‑year term with fixed monthly transportation fees.
• Gas Sales Agreement (GSA): Key terms agreed with PT Perusahaan Gas Negara Tbk (PGN); price expected at US$6–7/MMBtu. Parties are completing regulatory approvals and finalizing the binding agreement.
• SE‑MGH Capex: Revised to US$2 M (down from $3‑5 M). US$1.9 M spent to date; remaining spend limited to pipeline support and tie‑in facilities. Project fully funded, targeting first gas in Q2 2026 with 5–7 mmcf/d initial flow.
• SE‑MGH Well Test Results: SEM‑01 produced 7.9 mmcf/d (48/64” choke) over 4 h; staged test rates of 3.0, 5.1 and 7.1 mmcf/d on progressively larger chokes. Extended test in Aug 2025 showed sustained 7 mmcf/d (40/64” choke) and peaks up to 8 mmcf/d.
• N‑MGH Well Tests: MGH‑20 (July 2025) produced 2.5 mmcf/d (8/64” choke) with ~215 bbl oil over 48 h; MGH‑32 (Jan 2025) produced 2.1 mmcf/d (8/64” choke). Additional testing planned Q1 2026 for untested reservoir zones.
• Resource Impact: Management expects the SEM‑01 extended test to raise SE‑MGH contingent resources from 15 bcf to a higher figure; N‑MGH data will be incorporated into the 2025 Reserve Report (Q1 2026).
• 2025 Production Performance: Oil production averaged 825 bbl/d, below forecasts due to mechanical issues and incomplete workover program; capital reallocated to gas development.
• 2026 Budget Approval: Board approved a cash‑flow‑funded budget prioritizing SE‑MGH first gas, N‑MGH pipeline tie‑in, site prep for Macan Gedang & Cerah (gas discoveries), and oil field workovers/secondary recovery studies slated for 2027.
• Future Milestones (next 12 months): Finalize GSA, complete SE‑MGH pipeline construction, commence N‑MGH pipeline tie‑in, release updated reserve/resource report, achieve first gas from SE‑MGH (Q2 2026).

Notable Quotes

“Entering 2026, we have a clear pathway to gas production and to materially transforming our production and cashflow,” – Matthew Klukas, President & CEO.

Materiality: Material – Positive (first‑gas timeline, capex reduction, secured offtake, and resource upgrades are likely to have a material positive impact on the company’s financial position and operating outlook).