• Averaged 988 bbl/d(3) in the first quarter of 2025, up from 822 bbl/d(3) in the same quarter of the prior year.  
• Realized cash flow from operations of C$0.25 million, swinging from negative cash flow in the first quarter of last year. 
• Narrowed net loss by 52% to C$1.2 million, or $0.01 per share, in the first quarter of 2025 versus a loss of C$2.4 million, or $0.02 per share, in the prior year period. 
• Gas development at SE-MGH, the first of several developments in the Tungkal PSC, remains on track and on budget, with first gas expected in Q1 2026.

Criterium Energy, an independent upstream energy development and production company focused on energizing growth for Southeast Asia, today announced the filing of its Q1 2025 financial and operating results for the three-month period ended March 31, 2025, in addition to providing an operational update.

“We continued to deliver results across our portfolio as we strive to maintain oil production in the vicinity of 1,000 barrels per day, while simultaneously advancing gas development in the Tungkal PSC,” said Matthew Klukas, President and CEO of Criterium Energy. “In the face of volatile oil pricing, our goal remains to diversify our commodity risk and build increasing levels of resilience into the business, with an eye to meaningfully growing total production. Our focus on managing costs and seeking out further operational efficiencies has allowed us to deliver positive cash flow and streamlining the business remains a priority.”

First Quarter 2025 Results and Operating Highlights 

• Production on track: Achieved average field production in the Tungkal PSC of 988 barrels per day(3) ("bbl/d") in Q1 2025, up from 822 bbl/d(3) in Q1 2024. The increase reflects a successful 15-well workover campaign conducted through 2024, offset by reductions associated with pump failures in the Pematang Lantih field, which took ~60-80 bbl/d offline in February. 2025 production guidance remains 1,000 – 1,200 bbl/d. Criterium has engaged a production technology specialist to audit oil and gas facilities and wells and to provide actionable items for continued production improvements. 
• Positive Cash Flow from Operations: Funds flow from operations(5) (“FFO”) for the first quarter was US$0.15 MM (C$0.01/share(2,5) on an annualized basis) versus an outflow of US$1.5MM in Q1 2024 due to increased production and reduced operating costs realized through cost saving initiatives implemented throughout 2024. 
• Net Profit: Narrowed net loss by 52% to C$1.2 million, or $0.01 per share, in the first quarter of 2025 versus a loss of C$2.4 million, or $0.02 per share, in the prior year period. This improvement was the result of increased production and reduced operating costs realized through cost saving initiatives implemented throughout 2024.
• Sustained robust netbacks: Operating netbacks were relatively stable at US$30/bbl(5) in the first quarter despite a ~US$5/bbl reduction in oil price, reflecting the increased premium the Company received to Brent of ~US$3.5/bbl in Q1 2025. 
• Reduced gross debt: Completed payments of US$1.0 million during the quarter. Outstanding debt is US$23.3 million with an 8% interest rate. 
• SE-MGH gas development remains an immediate focus: Development is on-track with well-site preparations commenced in early Q2 2025. Bringing the 15 bcf4 of contingent resources into the reserves category will be critical to near- and mid-term value creation. Management reiterates its 2025 capital guidance of US$3 - $5 MM required to advance the project to first gas. 
• Diversifying the production profile by prioritizing repeatable, serial gas developments in the Tungkal PSC in the near- to mid-term: The Company expects to bring additional gas discoveries in the Tungkal PSC into development following SE-MGH, including Macan Gedang (contingent resources of 13 bcf(4)), Cerah (best case prospective resources of 26 bcf(4)), MGH Pad-3 (volumes under evaluation), and MGH 43 (volumes under evaluation) over the next two to three years.

Tungkal PSC Gas Development Plan – Building and Diversifying the Producing Portfolio

For 2025, management intends to develop the Company's gas assets with an eye to diversifying production beyond oil, backed by long-term gas sales agreements and funded from expected cash flow. Initially, the intent is to focus on the SE-MGH field, targeting production in Q1 2026 from the Talang Akar Formation ("TAF").

During the next 12 months, key milestones anticipated for gas development in the SE-MGH field include:

• Advancing project infrastructure including access road development and site preparation, which has already commenced. 
• Making a decision in Q2 2025 on whether to construct a short 14 km pipeline to tie into existing capacity or utilize modular LNG technology. 
• Conducting an extended well test in Q3 2025 on the existing SE-MGH well, which had previously tested at 8 MMcf/d(8), to confirm deliverability and gas composition. 
• Following the completion of the extended well test the Company expects to enter into a gas sales agreement with the buyer/offtaker expected to begin required site preparations. 
• First gas sales are anticipated in Q1 2026, at which time the Company will progress to further opportunities within its existing portfolio.

The estimated capital expenditure required to reach first gas is approximately US$3-5 million net to Criterium. Initial production is expected to range between 5 - 7 MMcf/d(4) (900 - 1,250 boe/d(6)). Pricing will be determined by the successful execution of a gas sales agreement, but recent historical contracts in South Sumatra have ranged between US$5 - $7/MMbtu(7) on a long-term fixed take-or-pay basis.

Subsequently, Criterium intends to develop the Macan Gedang gas asset, where the Macan Gedang-1 well encountered gas in the Gumai formation and tested at 5 MMcf/d8, with the intention of bringing production online in late 2026 or early 2027. The Company’s most recent resource report dated March 14, 2025 and prepared by ERCE Australia Pty Ltd. ("ERCE") with an effective date of December 31, 2024 (the "ERCE Report") indicated a 2C gas resource at Macan Gedang of 13 bcf. Both SE-MGH and Macan Gedang can be produced via Modular LNG technology or by tying into the existing local pipeline infrastructure and management is reviewing both options in parallel.

In addition to SE-MGH and Macan Gedang, the Tungkal PSC contains additional discovered gas that is not included in the 2024 ERCE Report. Specifically, (i) MGH Pad-3 in the MGH field, four wells in the northern area were shut-in in 2014 due to high gas-to-oil ratios and lack of infrastructure necessary to commercialize the gas production; (ii) gas was also encountered in the Gumai formation during the drilling of the MGH-43 infill well which is still being evaluated; and (iii) in 2008 the Cerah-1 well encountered gas shows in the Gumai formation but was not tested at the time due to low gas prices and lack of available infrastructure. Best case prospective resources in Cerah are expected to be 26 Bcf recoverable(4). With the strong and growing demand for gas in Indonesia, management believes development of these assets to be increasingly commercially viable and aligned with the Company strategy of shifting production to natural gas.

Bulu Transaction Update 

On September 5th 2024, Criterium received a second US$500,000 non-refundable payment from the buyer of its wholly owned subsidiary which owns a 42.5% non-operated working interest in the Bulu Production Sharing Contract, as originally announced on May 21, 2024. Inclusive of this US$500,000 payment, to date Criterium has received US$1,000,000 of the US$7,750,000 total purchase price consideration for the transaction. Management continues to work with the original buyer to close the transaction, however, it is also accelerating the development of alternatives to unlock value for shareholders, including taking an increasingly active role in the development of the Lengo gas field, as well as progressing discussions with other buyers.

Outlook 

Based on its capital program outlined in the release dated February 13, 2025, Criterium believes it has the potential to double current production by the end of Q1 2026 leveraging expected stable oil production, supported by a new round of workovers, and its ongoing gas development program, which it expects to fund from cash flow. The estimated capital expenditure required to reach first gas is approximately US$3-5 million net to Criterium. Management is working closely with the Company’s lenders to align the debt repayment schedule to best support a fully funded development program. 2025 production is expected to average between 1,000 and 1,200 bbl/d. Management believes there is potential to further step-up production by duplicating its SE MGH development strategy, focusing on making relatively modest capital expenditures to generate improved, near-term returns.

Management continues to monitor and assess cash flow impact and margin implications of the volatile global commodity pricing triggered by the rapidly shifting macroeconomic environment. However, management firmly believes this environment validates the Company’s strategy focused on acquiring undercapitalized assets in an energy hungry Southeast Asian market. With a portfolio that contains contingent resources heavily weighted to natural gas which attracts stable long-term pricing in domestic markets, combined with the realized operating cost reductions realized in 2024, the Company is primed to materially increase and diversify production in the near term.

1.    Includes lifting of 40,500 bbls that occurred in January 2025, attributed ~C$3.4MM in revenue and ~C$2.0MM to Q4 2024 Funds Flow based on capitalized inventory numbers in the Company YE 2024 Financial Statements 
2.    Assumes F/X rate of 0.70 CAD/USD and common shares outstanding as of March 31, 2025 of 136,375,234 
3.    Estimate based on field production reports 
4.    2024 Report: Reserve Report commissioned by Criterium Energy Ltd. and prepared by ERCE Australia Pty. Ltd, an independent reserves evaluator and auditor, dated March 14, 2025 with effective date of December 31, 2024 (the “2024 Report”), which was prepared in accordance with the definitions, standards, and procedures contained in the Canadian National Instrument 51-101 Standards of Disclosure of Oil and Gas Activities. The Reserve Report will be made available on Criterium’s SEDAR profile. 
5.    Non-IFRS financial measure or ratio that does not have any standardized meaning as prescribed by International Financial Reporting Standards, and therefore, may not be comparable with calculations of similar measures or ratios for other entities.
6.    6“Barrel Oil Equivalent” or “BOE” is determined by converting a volume of natural gas to barrels using the ratio of 5.615 Mcf to one barrel. BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 5.615 Mcf:1 BOE is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. 
7.    7Recent sales in South Sumatra may not be indicative of future pricing for the SE-MGH and solely relying on non-public information such as gas sales agreements may be misleading.
8.     8SE-MGH gas test duration was approximately 5 days and produce through 40/64” choke. Macan Gedang gas test duration was approximately 2 days and produced 4.6 MMscfd through a 48/64” choke. 
9.    9Calculation of Reserve Replacement Rations is based on a Report commissioned by Mont D’Or Petroleum Ltd. and prepared by ERCE Limited dated March 15,2023, which was prepared in accordance with the definitions, standards, and procedures contained in Canadian National Instrument 51-101 Standards of Disclosure of Oil and Gas Activities.

KeyFacts Energy: Criterium Energy Indonesia country profile