Criterium Energy Delivers Strong 2025 Results and Advances Transformational Gas Development

2026-04-28

TSXV - TSX Venture Exchange · Canada

Focused capital deployment in 2025 of US$1.9 million resulted in reserve additions of 24 bcf1, at a cost of US$0.45/2P boe.

Maintained production while increasing cash flow from operations; 2025 cash flow from operations of US$3.5 million.

SE-MGH pipeline construction commenced in Q1 2026 supporting expected near-term production addition of 5-8 mmcf/d1.

March 2026 oil liftings realized US$105/bbl, representing a premium to Brent benchmark pricing.

Calgary, Alberta--(Newsfile Corp. - April 28, 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 financial results for the fourth quarter and year ended December 31, 2025 and provided an update on recent production and development activities in the Company's Indonesian portfolio.

"2025 was defined by capital discipline and focused execution to diversify our reserves and production base," said Matthew Klukas, President and CEO of Criterium. "We are positioning the Company to deliver a combination of stable cash flow from contracted natural gas and premium-priced oil production. With first gas from SE-MGH approaching, we expect a meaningful step-change in production and a more balanced and resilient business profile."

"Indonesia's growing domestic energy demand is increasingly reinforcing the importance of continued investment in the sector. As the country seeks to secure a reliable, long-term energy supply, companies with existing production, development-ready assets, and local operating experience are well positioned to support this growth. Criterium is firmly aligned with these priorities and well positioned to play a meaningful role in meeting Indonesia's evolving energy needs while delivering value for shareholders."

Fourth Quarter and Year-End 2025 Results

Positive Cash Flow from Operations: Cash flow from operations was US$3 million for Q4 2025 and US$3.5 million for the full year, reflecting lower operating costs and the absence of prior-year transaction related costs associated with the acquisition of Mont D'Or Petroleum.

SE-MGH being developed within cash flow: Targeted deployment of US$1.9 million, with the majority spent on the successful SEM-01 re-entry program, which resulted in a production test of up to 8 mmcf/d2and a 40% increase in base case volumes to 21 bcf1. With an approved plan of development, key commercial contracts agreed, and pipeline construction ongoing, SE-MGH is set to add 5-8 mmcf/d1production in the near term - increasing total production by 2-2.5x on a barrel of oil equivalent basis.

2025 reserve report highlights material growth and diversification: Criterium commissioned ERCE Malaysia Sdn. Bhd. ("Sproule ERCE") to assess reserves and resources for the Tungkal and West Salawati PSCs. Sproule ERCE's evaluation showed an overall reserve and resource increase: 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. This represents reserve growth of 55% (1P) and 70% (2P) from YE2024 and reserve replacement of 260% (1P) and over 1,000% (2P).

Increased gas reserves:The Sproule ERCE Report highlights the upgrade of SE-MGH and the addition of N-MGH gas reserves, collectively increasing 2P reserves by 24 bcf1.

Increased oil resource:The Sproule ERCE Report highlights the near-, mid-, and long-term oil potential within the portfolio with the new addition of the MGH Waterflood (8.4 mmbbl 2C Resource), and Lemat (4.7 mmbbl 2C Resource)1. Both programs will utilize proven technologies and existing infrastructure with pilot programs planned in 2026.

Maintained production in 2025: Production volumes averaged 845 bbl/d3in 2025, a modest 3% decline when compared to 2024 and below prior management estimates. The reduction was due to mechanical issues at key production wells in PLT and MGH during the SEM-01 re-entry operations, and lower production than anticipated from the 2025 workover campaign. The Company did not complete its full workover program in 2025 amidst the disappointing results and lower oil pricing in the second half of the year. Capital was reallocated to the Tungkal gas development.

Managing balance sheet: The Company paid US$1.1 million to lenders in 2025, while maintaining flexibility to execute its capital program. Outstanding debt as at December 31, 2025 is US$24 million and carries a weighted average cost of lending of 8.2%4.

Adjusted Financial and Operational Summary

Note: All financial figures in the table are presented in CAD unless otherwise noted

| | | Three Months Ended (2025) | | | Year Ended (2025) | | | | | | | | | | | | ($000 CAD, except per share and per boe amounts) | | March 31 | | | June 30 | | | September 30 | | | December 31 | | | December 31 | | | Financial | | | | | | | | | | | | | | | | | Petroleum sales | | 14,6365 | | | 7,542 | | | 6,898 | | | 4,675 | | | 33,751 | | | Cash flow from (used in) operating activities | | 231 | | | 164 | | | 333 | | | 4,127 | | | 4,854 | | | Net Income (Loss) | | (1,171 | ) | | (1,237 | ) | | (3,761 | ) | | (8,648 | ) | | (14,817 | ) | | Capital Expenditures | | (168 | ) | | (714 | ) | | (778 | ) | | (972 | ) | | (2,632 | ) | | Weighted average common shares outstanding (000s) | | 136,102 | | | 136,375 | | | 136,375 | | | 136,375 | | | 136,308 | | | Weighted average fully diluted shares outstanding (000s) | | 232,832 | | | 233,371 | | | 233,371 | | | 234,816 | | | 234,816 | | | Operating | | | | | | | | | | | | | | | | | Average daily production (bbl/d) | | 988 | | | 890 | | | 784 | | | 733 | | | 846 | | | Netbacks ($CAD/bbl) | | | | | | | | | | | | | | | | | Petroleum and natural gas sales | | 114.08 | | | 96.66 | | | 99.08 | | | 91.31 | | | 102.54 | | | Royalties (Government Take) | | (28.54 | ) | | (17.85 | ) | | (23.81 | ) | | (14.77 | ) | | (25.60 | ) | | Production Costs | | (42.50 | ) | | (35.77 | ) | | (43.56 | ) | | (27.78 | ) | | (37.04 | ) | | Operating Netback | | 43.04 | | | 43.04 | | | 31.71 | | | 48.76 | | | 39.90 | |

The related audited consolidated financial statements, as well as Management's Discussion and Analysis ("MD&A") for the year ended December 31, 2025, are now available on SEDAR+ at www.sedarplus.caand on Criterium's website at www.criteriumenergy.com.

Q1 2026 Operations Update

Key Gas Commercial Terms Agreed: Criterium has reached agreement on key terms for the gas sales, facility, and gas transportation agreements. The agreements are currently being finalized. Most notably, the Gas Sales Agreement ("GSA") with PT Perusahaan Gas Negara Tbk ("PGN") is for the sale of produced gas from the Tungkal PSC, including SE-MGH. The parties are now proceeding with the regulatory approval process and finalizing the binding GSA. The gas sales price is expected to be consistent with recent sales in South Sumatra of US$6-$7/mmbtu.6

SE-MGH Pipeline Construction Commenced: Construction of the main pipeline, connecting SE-MGH to existing gas processing and transportation facilities, commenced in late March 2026 from the SEM-01 staging area and is currently at approximately 30% completion. To date the project has achieved over 20,453 safe man hours with no recordable lost time incidents. Start-up and construction to date has been delayed due to poor weather and issues with the project contractor sourcing the necessary materials in a timely manner. The Company has issued a notice to the contractor and is working to mitigate delays and advance project completion.

N-MGH Testing Completed:In Q1 2026, the Company conducted a long-term production test at the MGH-20 well, following successful initial testing in July 2025, to support future development planning. The test was designed to generate incremental oil production while collecting reservoir pressure and gas production data. The test was conducted over 20 days and concluded in March 2026, achieving production rates of up to 1.6 mmscf/d and an average of 45 bbl/d at 6/64" choke. Criterium anticipates future production from North Mengoepeh of 2-3 mmcf/d1, in addition to incremental oil volumes. The Company is currently finalizing the development plan and expects to commence construction activities shortly after first gas from SE-MGH.

Oil Sales Achieving Premium to Benchmark: For March 2026, Criterium realized an oil price of US$105/bbl, reflecting a premium to Indonesian and Brent benchmarks. Oil production in Q1 2026 averaged 691 bbl/d3, below expectations due to ongoing maintenance activities and well servicing, which are currently being addressed. Production in March 2026 has averaged over 700 bbl/d3.

Service Rig Upgraded and Contract Extended: In March 2026, Criterium renewed the long-term contract for the GBT-02 service rig. The rig has been under long-term contract in the Tungkal PSC and has performed all workover and well servicing activities during that period, including the SEM-01 re-entry in 2025. As part of the extension, the contractor will provide additional equipment and upgrades to enhance the rig's capabilities. This expanded scope will enable Criterium to undertake minor drilling and cementing operations, supporting efforts to optimize production from both producing and non-producing wells in the near term.

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

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. Gas was initially discovered on the Tungkal PSC in 1988 with the Macan Gedang-1 well and subsequent discoveries were made in 2001 (SE-MGH), 2004 (N-MGH), and 2008 (Cerah-1). This is in addition to isolated gas tests from various wells within the MGH oil field.

Historically, development of these gas discoveries was limited due to the absence of a regional gas market and supporting infrastructure. In recent years, demand for domestic gas has increased and infrastructure has been put in place. The PSC is under a gross split agreement that expires in 2042, and the Company intends to take a staged approach to development of the discovered gas fields on the PSC. Initially, the focus in on the SE-MGH field, targeting production in 2026 from the Talang Akar Formation ("TAF"), thereafter, development is planned to commence at N-MGH.

Over the past 12 months, the Company has taken critical steps to unlock these gas developments:

Successful re-entry of SEM-01 (SE-MGH):In August 2025, the Company re-entered the SEM-01 well and confirmed well deliverability. The well sustained rates of 7 mmcf/d through a 40/64" choke over a 48-hour period and achieved rates up to 8 mmcf/d through a 48/64" choke2. This successful test underpinned the increase in base case volumes by 40% to 21 bcf recoverable1.

Successful re-entry of MGH-20 & MGH-32 (N-MGH): Following the successful testing of MGH-20 in July 2025, which flowed 2.5 mmcf/d7with total associated oil production of approximately 215 bbls over a 48-hour period, the Company tested MGH-32 in January 2026 which flowed 2.1 mmcf/d through an 8/64" choke8. Combined, these tests support a base case volume estimate of 5 bcf1.

PGN Gas Sales Agreement: In January 2026, the Company agreed to key terms for a long-term take-or-pay gas sales agreement with PGN. The terms of this agreement are currently being finalized, and management anticipates the binding contract to be signed prior to first gas from SE-MGH.

Key facility and transportation terms agreed: Criterium has agreed to key terms for a facility sharing agreement with a nearby gas processing facility which currently has sufficient capacity to accommodate projected gas production volumes from the Tungkal PSC. The terms of this contract are on a cost-sharing basis and provide Criterium with direct access to processing and transportation related to meet the specifications and sales point outlined in the GSA.

Commenced pipeline construction: A critical element for Tungkal PSC gas development is the construction of a 24 km pipeline, connecting SE-MGH to existing gas processing facilities (the "SE-MGH Pipeline"). In 2025, the company signed an agreement with PT Dredolf Indonesia for the funding and construction of the SE-MGH Pipeline and construction commenced in March 2026.

First gas from SE-MGH will be achieved upon the completion of the SE-MGH Pipeline and management does not anticipate material incremental capital associated with this development. Initial production is expected to range between 5-8 mmcf/d1and will be sold within the terms outlined in the PGN GSA.

Subsequently, Criterium intends to develop the N-MGH gas asset, where MGH-20 was shut-in in 2014 due to high gas-to-oil ratios and lack of infrastructure necessary to commercialize the gas production. The development for N-MGH is anticipated to involve a newly constructed pipeline connecting MGH-20 to the SE-MGH Pipeline (the "N-MGH Pipeline"). The N-MGH Pipeline is currently planned to connect multiple well pads in the MGH field and the MGH Central Processing Facilities, thus allowing any incremental gas production from the MGH field to be produced at minimal incremental cost. Management is currently reviewing capital costs for the N-MGH development and will be communicated with the final development plan later in 2026. N-MGH holds base case volumes of 5 bcf and initial production from N-MGH is anticipated to be 2-3 mmcf/d1, combining with SE-MGH for over 26 bcf recoverable and over 10 mmcf/d production1.

In addition to SE-MGH and N-MGH, the Tungkal PSC contains additional discovered gas. Specifically (i) Macan Gedang, where the Macan Gedang-1 well encountered gas in the Gumai formation and tested at 5 mmcf/d9and a 2C Resource of 13 bcf, and (ii) 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 recoverable1. Unlike SE-MGH and N-MGH, where existing wells can be used for initial production, Macan Gedang and Cerah will require development and delineation wells to proceed with development. Management is currently progressing through the regulatory approvals and anticipates that drilling could commence in 2027. Both fields will require an approved plan of development but can utilize the GSA and key commercial agreements established in 2026, thus reducing time to first gas by eliminating multiple regulatory approvals.

Breathing new life into the Bulu PSC

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/d10and leading to a sizeable 2C gross resource of 365 bcf (134 bcf net to Criterium)11. 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 holds near-, mid-, long-term potential

The infrastructure led gas development strategy outlined above can also be applied to the oil reserves and resources held with the MGH and PLT fields within the Tungkal PSC. Production from the Tungkal PSC is lifted and sold on a monthly basis and priced in accordance with the Indonesian Crude Price ("ICP"), which is set monthly by the Government of Indonesia and varies based on crude origin and quality. In 2025, Criterium average oil sales was US$71/bbl, representing an approximate premium of US$2/bbl to ICP and Brent benchmarks. In March 2026, this increased to US$105/bbl, an approximate US$2/bbl premium to ICP and US$5/bbl premium to Brent.

The Sproule ERCE Report estimates 2P Reserves of 3.5 mmbbl from the Tungkal PSC, driven by workovers and infill drilling. Management intends to focus the GBT-02 rig on managing production decline via routine maintenance, pump optimization, water shut-off via cement squeeze and perforating existing and potential new zones.

In the mid term, enhanced oil recovery has the potential to materially increase reserves. With estimated 2C resource of 8.4 mmbbl from the MGH field, this represents a significant opportunity. Management believes that similar technologies will also apply to the PLT, where an increase in 10% recovery represents another incremental 1.5 mmbbls12. In 2026, Criterium intends to take the necessary steps, including a pilot program, to delineate these opportunities.

Within the South Sumatra basin, the Lemat Formation is traditionally described as a source rock, however towards the basin edge, where the Tungkal PSC resides, it grades into a sandstone. While slightly lower porosity and permeability than the overlying TAF, the Lemat has been penetrated and tested by multiple wells within the MGH field. Assessment of these penetrations leads to a base case 2C recoverable estimate of 4.7 mmbbl. To unlock this resource will require reservoir stimulation and Management is currently reviewing a series of proven methods and intends to conduct a pilot program on an existing well in 2026.

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 well maintenance and optimization and 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:

LinkedIn: https://www.linkedin.com/company/criterium-energy/ X (formerly Twitter): https://x.com/CriteriumEnergy, YouTube: https://www.youtube.com/@CriteriumEnergyCEQV

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 contain 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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