Criterium Energy Ltd. press release
Criterium Energy Announces 2025 Reserves, Highlighted by 70% 2P Reserve Growth and Increased Contingent Resource
TSXV - TSX Venture Exchange · Canada
Record high 1P reserves of 2.2 MMboe, 2P reserves of 7.7 MMboe, and 3P reserves of 16.5 MMboe1. Upgraded SE-MGH and added N-MGH to reserves at an efficient US$0.1/2P mcf (US$0.4/2P boe)2. 2P Reserve NPV10 of US$50 million, equivalent to C$0.50 per common share3and calculated on Brent price deck averaging US$67/bbl from 2026 - 2030. SE-MGH upgraded to reserves along with 40% increase in base case recoverable volumes to 21 bcf (SE-MGH and N-MGH combine for 24 bcf 2P1). Robust pipeline of resource development driven by MGH waterflood and Lemat plays, increasing contingent oil resources by 13 MMbbl (2C)1, resulting in record high 2C contingent resource of 40 MMboe1,8.
Calgary, Alberta--(Newsfile Corp. - March 24, 2026) - Criterium Energy Ltd. (TSXV: CEQ) ("Criterium" or the "Company"), an independent upstream energy development and production company focused on energizing growth for Southeast Asia today announced the results of its third-party, independent reserves and resources assessment at year-end 2025.
"These results highlight our ability to deliver meaningful reserve and resource growth through a highly-capital efficient approach, utilizing existing infrastructure and our technical expertise to create value with minimal investment," said Matthew Klukas, President and CEO of Criterium Energy.
"Importantly, we have diversified our portfolio with gas reserves at SE-MGH, expected to be on production in the near term, expected to result in a meaningful increase in free cash flow and strengthening our financial position. This gas development is expected to represent a repeatable, low-cost model for future development, while our oil assets continue to provide resilient cash flow. Looking ahead, our near-term focus remains on safe operations, construction of the SE-MGH pipeline and delivering first gas promptly.
Our 2025 reserve report validates the substantial upside across our portfolio, particularly through our multiple gas assets and the advancement of waterflood in the Tungkal PSC, which has the potential to materially increase recovery and long-term oil reserves. As we execute these initiatives, we remain focused on disciplined capital allocation and delivering sustainable value for our shareholders through growth and deleveraging."
Reserve & Resource Highlights
Total Reserve Increase and Diversification: Total proved ("1P") reserves of 2.2 MMboe (64% Gas), total proved plus probable ("2P") reserves of 7.7 MMboe (55% Gas), and proved plus probable plus possible ("3P") reserves of 16.5 MMboe (52% Gas)1,4. This represents reserve growth of 55% (1P) and 70% (2P) from YE2024 and reserve replacement of 260% (1P) and over 1,000% (2P)5.
SE-MGH Reserve Upgrade and Volume Increase: The successful extended well test of SEM-01 and removal of key commercial contingencies have upgraded Southeast Mengoepeh ("SE-MGH") recoverable estimates from Contingent Resource to Reserves. A re-assessment of reservoir properties, based on results from the extended well test, have increased base case estimates by 40% to 21 bcf. Development of SE-MGH remains on track with first gas anticipated to add 5-7 mmcf/d in late Q2 20261.
N-MGH Reserve Addition: The successful test of MGH-20 in 2025 and the subsequent development plan has increased base case Total Recoverable Reserves ("TRR") by 5 bcf. North Mengoepeh ("N-MGH") was not included in the prior year reserve report. With the successful conclusion of additional testing on MGH-20 and MGH-32, the Company is progressing with the development of N-MGH with a plateau of 2-3 mmcf/d anticipated to be online in Q1 20271.
Demonstrated capital efficiency: By utilizing existing wells and infrastructure for production and processing, the Company has delivered gas reserve growth from SE-MGH & N-MGH at a capital efficiency of US$0.2/1P mcf (US$1.3/1P boe) and US$0.1/2P mcf (US$0.4/2P boe)2.
Robust Net Asset Value: Total 2P Reserve NPV10 of US$50 million combined with estimated net debt of US$23 million equates to an equity value of C$44 million or C$0.27/share. Valuation by Sproule ERCE is based on a price deck averaging US$67/bbl from 2026 - 2030.
Contingent Resource Increase: Record Contingent Resources ("1C") of 30 MMboe (73% Gas), Base Case ("2C") of 40 MMboe (66% Gas), and High Case ("3C") of 54 MMboe (58% Gas), driven by the addition of 8.4MMbbl in MGH waterflood and 4.7MMbbl from the Lemat play targeting additional oil in the Mengoepeh Field ("MGH") in the Tungkal PSC. These total resource figures are inclusive of the previously commissioned NSAI resource report for the Lengo field8.
Macan Gedang Upgrade: Underpinned by the facility sharing agreements and gas sales terms associated with the SE-MGH development, Macan Gedang has been upgraded to _Contingent Resource, Development Pending. _In 2026, the Company intends to submit a plan of development for the 13 bcf 2C resource with first gas targeted in 2027 at a rate of 3-5 mmcf/d1.
MGH secondary recovery takes shape: Addition of 8.4 MMbbl 2C Contingent Resource1is associated with a waterflood program at the MGH field targeting un-swept oil by providing pressure support within the producing Talang Aker Formation ("TAF"). Criterium anticipates conducting feasibility studies and a pilot program in the near term with implementation in 2027.
Sizeable Lemat potential: The Lemat Formation sits below the main producing TAF reservoir in the MGH field and has previously successfully flowed oil during testing. Criterium intends to unlock the 4.7 MMbbl of 2C Contingent Resource1through reservoir stimulation techniques, such as hydraulic fracturing from existing wells.
Lengo remains a key resource: Representing over 50% of the Company's Contingent Resource, the Lengo field within the Bulu PSC is a key asset for the Company. The signing of the MOU with KJG, announced on November 20, 2025has demonstrated a keen interest from stakeholders to progress with development. The Company continues to work with joint venture partners and the Indonesian regulators to proceed with development to address Indonesia's increasing need for domestic energy production.
Oil production receives premium to Brent: Criterium receives a premium to the Indonesia Crude Price ("ICP"), a benchmark that is set monthly by the Government of Indonesia and tracks closely with dated Brent prices for the month. In 2025, Criterium received an estimated US$3/bbl premium to Brent, which has continued to date in 2026. Production is stored in tanks with lifting and sales conducted monthly.
Reserve Summary
Criterium commissioned ERCE Malaysia Sdn. Bhd. ("Sproule ERCE") to assess reserves and resources for the Tungkal and West Salawati PSC's. Sproule ERCE's evaluation is contained in a report dated March 23, 2026, with an effective date of December 31, 2025 (the "2025 Report").
Resources in the Bulu PSC were previously evaluated by Netherland Swell and Associates Inc. ("NSAI") in 2023 in a report dated January 13, 2023 with an effective date of December 31, 2022 (the "NSAI 2023 Report").
As no new technical information was acquired, the Bulu PSC was not evaluated by Sproule ERCE in the 2025 Report and as such there were no material changes to the previous resource estimates established by NSAI.
Summary of Oil and Gas Reserves in the Tungkal and West Salawati PSC's as of December 31, 20251
| | Light/Medium Oil Company Gross (MMbbl) | Light/Medium Oil Company Net (MMbbl) | Natural Gas Company Gross (Bcf) | Natural Gas Company Net (Bcf) | Total Gross (MMboe) | Before Tax NPV discounted at 10% (US$MM) | After Tax NPV discounted at 10% (US$MM) | | Proved (1P) | 0.8 | 0.6 | 8.0 | 5.1 | 2.2 | 7.3 | 3.5 | | Proved + Probable (2P) | 3.5 | 2.6 | 23.9 | 15.2 | 7.7 | 74.6 | 49.7 | | Proved + Probable + Possible (3P) | 7.9 | 5.9 | 48.4 | 30.7 | 16.5 | 184.5 | 121.4 |
Valuations are calculated using Sproule ERCE price deck effective December 31, 2025 with average Brent price of US$67/bbl from 2026 - 2030.
Gas Reserves: SE-MGH & N-MGH
Reserves (1P/2P/3P)1: 8.0 / 23.9 / 48.4 bcf
Management intends to develop the Company's gas assets with an eye towards diversifying production beyond oil, backed by long-term Gas Sales Agreements ("GSAs") and funded by expected operating cash flow. In 2025, the Company made significant progress in technical and commercial aspects of the Tungkal gas development, including an approved plan of development for SE-MGH and agreed terms on a long-term GSA. This progress resulted in an upgrade for SE-MGH from Contingent Resource to Reserves and a 40% increase in base case recoverable estimates to 21 bcf1. The conversion of SE-MGH to reserves reflects the removal of key technical and commercial contingencies, supporting its advancement toward near-term production.
With site preparations and pipeline construction commencing, first gas from SE-MGH remains targeted for Q2 2026 with no material additional capital requirement expected net to Criterium. Initial production rates are anticipated to be 5-7 mmcf/d, aligned with the successful well test of SEM-016and Sproule ERCE estimates.
In addition to SE-MGH, successful testing at the MGH-207well in the N-MGH field, has led to the addition of 5 bcf1to total base case gas recoverable estimates within the Tungkal PSC. Criterium intends to develop the N-MGH field which will produce gas from existing wells and be transported to SE-MGH via a newly constructed pipeline. The pipeline connecting N-MGH to SE-MGH will conveniently utilize existing rights of way and connect the MGH Central Processing Facility to gas egress, thus allowing any associated gas within the producing MGH oil field or identified gas zones within the MGH field to flow to sales markets at minimal additional costs. Initial production is anticipated to be 2-3 mmcf/d7with associated oil and management expects first production to occur in Q4 2026/Q1 2027.
Oil Reserves: MGH & PLT
Reserves (1P/2P/3P)1: 0.8 / 3.5 / 7.9 MMbbl
2025 production from the MGH and PLT fields totaled 0.31 MMbbl5, which implies a 2P Oil Reserve Life Index of 11 years, which management believes underlines a strong foundation of cash flow, especially at price levels currently realized. The 2P reserves for the MGH field are calculated using a Total Recoverable Reserve TRR estimate which represents a recovery of <10% from the MGH field, which management intends to improve via secondary recovery techniques, such as waterflood, which has been included as Contingent Resource in the 2025 Report, contributing an additional 8.4 MMbbl of 2C.
Criterium's future oil development program will focus on the MGH and PLT fields, where the Company intends to conduct additional workovers and has identified infill drilling locations with potential to drive further production increases in parallel with the waterflood.
Contingent Resources Summary
Gas Contingent Resources as of December 31, 2025,1,8,11
| Field | Resources Sub-Class | Chance of Development | Resources Category | Gas Company Gross_ (Bcf)_ | | Macan Gedang (Tungkal PSC, 100% owned) | Development Pending | 70% | 1C | 8.0 | | 2C | 12.6 | | | | | 3C | 20.0 | | | | | Lengo (Bulu PSC, 42.5% working interest) | Development on Hold | 76.5% | 1C | 114.6 | | 2C | 133.6 | | | | | 3C | 156.2 | | | |
Macan Gedang - Tungkal PSC
Contingent Resources (1C/2C/3C)1: 8.0 / 12.6 / 20.0 bcf
The Macan Gedang-1 well, drilled in 1988, encountered gas in the Gumai formation and subsequently tested 4.6 mmcf/d9. Criterium intends to drill a development well at Macan Gedang and produce via a newly constructed pipeline to existing gas transportation and processing facilities and utilizing the commercial agreements and gas sales agreements established for SE-MGH and N-MGH.
In 2026, Management intends to complete regulatory approvals, including approval of the plan of development, to prepare for site preparations, drilling, and pipeline construction in 2027.
Lengo - Bulu PSC
Contingent Resources (1C/2C/3C)8: 114.6 / 133.6 / 156.2 bcf
The Lengo field was discovered in 2008 by the Lengo-1 well and appraised in 2013 by the Lengo-2 well, the later testing up to 25 mmcf/d9and leading to a sizeable 2C gross resource of 365 bcf (134 bcf net to Criterium)10. Management intends to collaborate with JV Partners and SKK MIGAS, the Indonesian regulator, to proceed with the development of the Lengo gas field utilizing offshore processing capabilities and transportation to a robust sales market in Java via the KJG pipeline. To support this development plan, Criterium, via a wholly owned subsidiary, signed a Memorandum of Understanding with the KJG Pipeline in November 2025.
Oil Contingent Resources as of December 31, 20251,11
| Field | Resources Sub-Class | Chance of Development | Resources Category | Light/Medium Oil Company Gross_ (MMbbl)_ | | Mengoepeh Infill (Tungkal PSC, 100% owned) | Development Pending | 90% | 1C | 0.2 | | 2C | 0.5 | | | | | 3C | 0.8 | | | | | Mengoepeh Waterflood (Tungkal PSC, 100% Owned) | Development Unclarified | 50% | 1C | 5.7 | | 2C | 8.4 | | | | | 3C | 12.4 | | | | | Mengoepeh Lemat (Tungkal PSC, 100% Owned) | Development Unclarified | 30% | 1C | 2.4 | | 2C | 4.7 | | | | | 3C | 9.3 | | | |
There is uncertainty that it will be commercially viable to produce any portion of the resources.
MGH Waterflood - Tungkal PSC
Contingent Resources (1C/2C/3C)1: 5.7 / 8.4 / 12.4 MMbbl
The MGH field has produced 5.2 MMbbls as of December 31, 2025, which represents a recovery factor of 6.2% based on a base case (P50) Original Oil in Place ("OOIP") of 84 MMbbls within the TAF1. To achieve a higher recovery factor, Criteirum intends to implement a waterflood program throughout the MGH field, targeting an incremental 10%, equating to 8.4 MMbbl on a base case (2C) basis1.
The Company intends to conduct a pilot program on the GH sand within the TAF and upon success, expand into lower TAF zones where the majority of the OOIP remains. Pressure support through this approach is essential to sustain and enhance MGH production, thereby increasing ultimate recovery rates.
MGH Lemat - Tungkal PSC
Contingent Resource (1C/2C/3C)1: 2.4 / 4.7 / 9.3 MMbbl
The Lemat formation sits beneath the main producing TAF reservoir in the MGH field and has been penetrated by multiple existing wells in the past with corresponding swab tests. The swab tests, specifically from wells in Pad-5 located in the North Central area of the MGH field, have confirmed the presence of oil with watercuts ranging from 11-39%. Porosity and permeability of the Lemat is lower than the overlying TAF, leading Management to believe that reservoir stimulation techniques, such as hydraulic fracturing, are required to increase and sustain production from the formation. In 2026, Management intends to conduct feasibility studies and a pilot project to test this potential.
Prospective Resources
Criterium has Prospective Resources in the Tungkal PSC and West Salawati PSC. A summary of the prospective resources can be found in the Company's Presentation dated March 24, 2026. There were no changes to prospective resources from YE2024.
Cerah & NW-Cerah
Cerah Prospective Resource (1U/2U/3U)1: 7.4 / 26.2 / 93.4 bcf NW Cerah Prospective Resource (1U/2U/3U)1: 2.0 / 8.2 / 33.9 bcf
The Cerah prospect was penetrated by well Cerah-1 which encountered gas shows in the Gumai Formation but was not tested at the time due to the primary target being oil within the deeper TAF. The Cerah structure is a NW-SE trending thrust fault and at the Gumai level, Cerah is separated from NW Cerah by a structural saddle.
Management intends to prioritize the development of the Cerah prospect as the Cerah-1 well will either need to be re-entered, or a twin well drilled, to test the deliverability of the Gumai reservoir. Upon completion of a successful production test, the Cerah volumes may be upgraded to the contingent resource category and have the potential to materially increase Criterium's gas production if developed.
Cerah is fortuitously located less than 3 km from an existing gas pipeline and can be developed within the commercial and gas sales agreements agreed for SE-MGH and other Tungkal gas fields. In 2026, Criterium intends to submit approvals required for the restoration of the road and well-site for the purpose of re-entering or twinning the Cerah-1 well in 2027.
Outlook
Based on its capital program and activities outlined in the release dated February 10, 2026, Criterium continues to believe it has the potential to materially increase production in 2026 which it expects to fund from operating cash flow, further supported by the recent escalation in oil prices.
By duplicating its SE-MGH development strategy on nearby N-MGH and Macan Gedang, production can be increased further with relatively modest capital expenditure, generating improved, near-term returns and cash flow. Management also intends to maximize baseline oil production with the most likely near-term production gains coming from associated oil produced from the N-MGH gas development.
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 websiteand review a recent corporate presentation,and to follow the Company on the following platforms for ongoing corporate updates and relevant international oil and gas industry information: X (formerly Twitter): https://x.com/CriteriumEnergy, YouTube: https://www.youtube.com/@CriteriumEnergyCEQV LinkedIn: https://www.linkedin.com/company/criterium-energy/
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:
| Matthew Klukas President and Chief Executive Officer Criterium Energy Ltd. Email: info@criteriumenergy.com Phone: +1-403-668-1630 | Andrew Spitzer Chief Financial Officer Criterium Energy Ltd. Email: info@criteriumenergy.com Phone: +1-403-668-1630 |
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Notes
12025 Report: Reserve Report commissioned by Criterium Energy Ltd. and prepared by ERCE Malaysia Sdn. Bhd., an independent reserves evaluator and auditor, dated March 23, 2026 with effective date of December 31, 2025 (the "2025 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.
2Assumes US$1.9 million spent on SE-MGH extended well test and project costs to date. All N-MGH costs in 2025 were categorized as operating expenses
3Assumed USD/CAD exchange rate of 0.73.
4Gas estimates are converted to barrel of equivalent ("boe") using a 5.6 mscf/boe conversion rate.
5Assumes average daily production in 2025 of 845 bbl/d
6SEM-01 Well Test Results: SEM-01 completed extended well test on August 24,2025 and is currently suspended awaiting egress. The production test resulted in a clean-up period which produced 7.9 mmcf/d through a 48/64" choke with 706 psig WHP for a period of 4 hours. The 3-stage completion test was as follows: 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.