September 24, 2024 7:00 AM EDT | Source: Criterium Energy Ltd.
Calgary, Alberta–(Newsfile Corp. – September 24, 2024) – Criterium Energy Ltd. (TSXV: CEQ) (“Criterium” or the “Company”), an independent upstream energy development and production company focused on energizing growth for Southeast Asia and its shareholders, is pleased to provide an operational update related to optimization and drilling activities in the Company’s 100% owned and operated Tungkal PSC Indonesia (the “Tungkal PSC“).
Intervention and Workover Activities Continue to Exceed Expectations
A key focus area for Criterium has been increasing production in the Tungkal PSC through the execution of low-cost well interventions and workovers in the Mengoepeh Field (“MGH“). As initially communicated on June 25, 2024, the workover activities have continued to exceed expectations, achieving rapid payback and incremental production with minimal costs.
Highlights of the program to date in 2024 include:
Successful completion of 11 workovers, including two in March, five in June, and four in August.
Generated incremental pre-tax cash flow of approximately US$1,500,000 from an investment of US$600,000, representing operating cash flow of approximately $0.02 per share on an annualized basis, directed to the workover program, with each workover program paying back costs within approximately 30 days.
Incremental production from the workovers totals slightly over 220 bbl/d, contributing to current field production of over 950 bbl/d, and demonstrating the Company can bring incremental volumes on stream at less than US$3,000 per flowing barrel.
Discovered additional gas in MGH-48 which allows for a sustained reduction in operating costs by offsetting the need for diesel to generate power. As of June 30, 2024, the Company has already reduced operating costs by 7% this year, with further updates on operating costs to be provided within Criterium’s Q3 results.
To date the Company has completed 11 of an expected 12-15 workovers in 2024, with the next tranche expected to be undertaken in Q4 2024. In addition to remaining on track to execute its robust workover program in 2024, the Company has commenced an operated infill drilling program, described more fully below.
Further information on Criterium’s workover program can be found in an updated presentation on the Company’s website.
The successful workover program in August 2024 and completion of pump maintenance in the Pematang Lantih (“PLT“) field in the Tungkal PSC has increased total production to approximately 950 bbl/d (September field estimate average of 925 bbl/d from the Tungkal PSC).
Criterium Spuds MGH-43, its First Operated Well in the Tungkal PSC, Onshore Indonesia
Criterium is pleased to confirm the spud of MGH-43, the first of two planned and operated infill wells to be drilled from a new well pad within the proven MGH Field which is situated on its 100% owned and operated Tungkal PSC (the “2024 Program“).
The 2024 Program intends to access untapped areas in the MGH Field, targeting multiple pay zones within the Talang Akar Formation (the “TAF“). The Fluvial Deltaic reservoir within the TAF features 20 to 25 metres of net pay, with 10 to 20% porosity and 50 to 100 millidarcies of permeability on average, reservoir characteristics that are typically associated with higher productivity. The MGH Field and the planned infill locations are mapped on 3D-seismic and located less than 1 km from a central processing facility, mitigating risks related to potential deliverability and access to markets.
Approximately 300 bbl/d (150 bbl/d per well)1 of incremental light oil (35° API) production is expected to be added from the 2024 Program, which commands premium Brent pricing and benefits from existing infrastructure utilization. The volumes from both wells are expected to be on-stream in November of 2024, producing into nearby owned and operated facilities. By deploying a production strategy that requires lower capital, the total cost of the 2024 Program is estimated at US$4.5 million, including drilling, completion and tie-in.
Criterium will provide updates on the infill program, including preliminary results, as they become available.
Stay Connected to Criterium
Shareholders and other interested parties who would like to learn more about the Criterium opportunity are encouraged to visit the Company’s website and review a recent corporate presentation, and to follow the Company on X (formerly Twitter) at https://x.com/CriteriumEnergy and on LinkedIn at https://www.linkedin.com/company/criterium-energy/ for ongoing corporate updates and relevant international oil and gas industry information.
About Criterium Energy Ltd.
Criterium Energy Ltd. (TSXV: CEQ) is Canadian-based upstream energy company focused on the consolidation and sustainable development of assets in Southeast Asia that can deliver scalable growth and cash flow generation. This region is expected to house a population approaching 800 million people within the next 25 years, driving world-leading economic growth and record energy demand. With international operating expertise and a local presence, Criterium intends to contribute responsible, safe and secure sources of energy to help meet this demand. The Company is committed to maximizing total shareholder return by executing across three strategic pillars that include (1) fostering a successful and sustainable reputation; (2) leveraging innovation and technology arbitrage; and (3) achieving operational excellence with an unwavering commitment to safety. For further information please visit our website (www.criteriumenergy.com) or contact:
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
Notes
1 Field estimate, based on most recent production and cost data.
2 Management estimate based on previously disclosed ‘Mont D’Or Venture Limited YE Evaluation’ reserve and resource report, effective December 31, 2022. This report was conducted by an independent qualified reserves evaluator or auditor in accordance with the COGE Handbook.
3 Calculated assuming US$80/bbl brent and field estimates of operating costs
Abbreviations
bbls
barrels of oil
bbls/d
barrels of oil per day
MGH
Mengoepeh
PLT
Pematang Lantih
TAF
Talang Akar Formation
Cautionary Note Regarding Forward-Looking Statements
This press release contains certain forward-looking information and statements that are based on expectations, estimates, projections, and interpretations as at the date of this news release. The use of any of the words “expect”, “anticipate”, “continue”, “estimate”, “may”, “will”, “project”, “should”, “believe”, “plans”, “intends”, “seek”, “aims” and similar expressions are intended to identify forward-looking information or statements.
This press release contains statements of forward-looking information including, without limitation, statements with respect to intended use of net proceeds of the Offering.
Factors that could cause actual results to vary from forward-looking statements or may affect the operations, performance, development and results of Criterium’s businesses include, among other things: risks and assumptions associated with operations; risks inherent in Criterium’s future operations; increases in maintenance, operating or financing costs; the availability and price of labour, equipment and materials; competitive factors, including competition from third parties in the areas in which Criterium intends to operate, pricing pressures and supply and demand in the oil and gas industry; fluctuations in currency and interest rates; inflation; risks of war, hostilities, civil insurrection, pandemics (including COVID-19), instability and political and economic conditions in or affecting Indonesia or other countries in which Criterium intends to operate (including the ongoing Russian-Ukrainian conflict); severe weather conditions and risks related to climate change; terrorist threats; risks associated with technology; changes in laws and regulations, including environmental, regulatory and taxation laws, and the interpretation of such changes to Criterium future business; availability of adequate levels of insurance; difficulty in obtaining necessary regulatory approvals and the maintenance of such approvals; general economic and business conditions and markets; and such other similar risks and uncertainties. The impact of any one assumption, risk, uncertainty or other factor on a forward-looking statement cannot be determined with certainty, as these are interdependent and the Company’s future course of action depends on the assessment of all information available at the relevant time. Such forward looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.
With respect to forward-looking statements contained in this press release, Criterium has made assumptions regarding, among other things: the COVID-19 pandemic and the duration and impact thereof; future exchange and interest rates; supply of and demand for commodities; inflation; the availability of capital on satisfactory terms; the availability and price of labour and materials; the impact of increasing competition; conditions in general economic and financial markets; access to capital; the receipt and timing of regulatory and other required approvals; the ability of Criterium to implement its business strategies; the continuance of existing and proposed tax regimes; and effects of regulation by governmental agencies.
The forward-looking statements contained in this press release are made as of the date hereof and the parties do not undertake any obligation to update or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
1 Management estimate based on previously disclosed ‘Mont D’Or Venture Limited YE Evaluation’ reserve and resource report, effective December 31, 2022. This report was conducted by an independent qualified reserves evaluator or auditor in accordance with the COGE Handbook.
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SOURCE: Criterium Energy Ltd.
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