Mr. Robin Auld reports

CRITERIUM ENERGY ANNOUNCES 2024 GUIDANCE, COMMENCES OIL DEVELOPMENT ACTIVITIES, SIGNS STRATEGIC GAS OFFTAKE AND PROVIDES OPERATIONAL UPDATES

Criterium Energy Ltd. has provided full-year 2024 guidance which is focused primarily on the continued development of assets recently acquired through the Mont D'Or Petroleum Ltd. (MOPL) transaction, along with an update on current operations.

With the completion of the MOPL acquisition, Criterium has established an immediate cash flow foundation from existing oil fields and acquired two large blocks at the Tungkal PSC (564,636 acres) and West Salawati PSC (239,692 acres). These assets offer immediate growth opportunities, including a substantial inventory of low-risk well workover candidates, a large inventory of oil infill drilling locations and a low-risk discovered gas play anticipated to commence production in 2025 to 2026 that unlocks significant shareholder value. Criterium's immediate focus is boosting oil production from the Tungkal PSC through a low-risk well workover/reactivation program currently under way, and an infill drilling program to commence in third quarter 2024. In addition, both blocks have regional 2-D seismic coverage and Criterium has identified a large inventory of well-defined high-impact exploration prospects and leads.

2024 guidance

The company has approved a 2024 budget designed to boost production of the newly acquired MOPL assets through capital efficient well workovers, infill drilling and enhancing operational efficiencies, while also deleveraging and strengthening the balance sheet. The capital program and debt reduction outlined is self-financed and can be accelerated should additional capital become available through the course of the year. The execution of the 2024 capital program and associated price assumptions are expected to result in the metrics outlined herein, which form the basis of Criterium's guidance for the full year 2024.

Criterium president and chief executive officer Robin Auld stated: "With the closing of the Mont D'Or Petroleum acquisition in early 2024, Criterium's position as a credible, producing operator in Indonesia has been solidified. I am incredibly proud of our team's efforts to execute the transaction and build key relationships in the region as a result. We are encouraged with the breadth of opportunities offered by the Mont D'Or portfolio and are working diligently to unlock its inherent value for our shareholders. Our 2024 program strikes a prudent balance between capital discipline and near-term production and EBITDA [earnings before interest, taxes, depreciation and amortization] growth. The program is also designed to enable Criterium to deliver increasing oil production and cash flow into 2025, alongside layering in our Tungkal PSC discovered gas project with new strategic offtake partner PT Energasindo Heksa Karya."

Operational highlights:

• Identified over 50 workover and intervention opportunities to be completed over the next several years;
• Secured a service rig to complete the 2024 workover program of 12 to 15 wells;
• Completed the first set of workovers which are expected to be on production within two weeks;
• Multiwell oil development drilling program at Tungkal expected to commence in Q3 2024;
• Signed an agreement with PT Energasindo Heksa Karya (EHK), a company owned by Rukun Raharja and Tokyo Gas, whereby EHK will purchase discovered gas from the Tungkal PSC;
• Tungkal PSC gas project is expected to add 1,000 to 1,500 barrels of oil equivalent/day (100-per-cent working interest) of natural gas production once on stream in 2025 to 2026;
• Continued to progress the of sale of Criterium's 42.5-per-cent non-operated working interest in the Bulu PSC;
• Awaiting buyer's approvals to close Bulu PSC transaction (sale price $7.75-million (U.S.) or approximately $10.5-million).

Operational update Tungkal PSC and West Salawati PSC

Criterium has successfully completed the first set of planned workovers in the Mengopeh (MGH) field in the Tungkal PSC, which offer low-cost and efficient production additions. The workover wells are currently recovering load fluid and expected to be placed back on production in the next two weeks. The company anticipates announcing full results from this first set of workovers in conjunction with the release of its year-end 2023 financial results on or before April 26, 2024. As part of its 2024 guidance, Criterium also expects to continue employing the same contracted workover rig to carry out a campaign of workovers which is expected to deliver 12 to 15 workovers during 2024.

Both the MGH and the PLT oil fields on the Tungkal PSC are covered with 3-D seismic and Criterium has high-graded over 10 infill development drilling locations. At an estimated average cost of $1.8-million (U.S.) to drill, complete and tie-in, the single well economics are very attractive in the current oil market. In Q3 2024, Criterium plans to commence a multiwell drilling program at the MGH field from existing and newly constructed drilling pads.

As part of a plan to reduce operating cost run rate by 10 to 15 per cent on the acquired assets, Criterium is in the process of temporarily suspending the single well in the West Salawati PSC that is currently producing approximately 10 barrels/day. This is expected to provide an immediate $500,000 (U.S.) in annual savings. In 2024, the team will focus on its current workover campaign and upcoming development drilling activities in the Tungkal PSC and return to activity in West Salawati at a later date.

In order to complement the ongoing production enhancement activities at the MGH field, the company is also advancing development of previously discovered gas-in-place within the Tungkal PSC. In March of 2024, Criterium secured the first step to a gas sales agreement (GSA) by signing an agreement with one of the largest natural gas distributors in Indonesia, EHK, to purchase gas from the Tungkal PSC at a fixed rate. Further information about EHK can be found at its website. While final pricing and terms will be determined prior to execution of a GSA, similar fixed-rate GSAs have featured natural gas prices ranging from $6 (U.S.) to $8 (U.S.) per million British thermal units. This development is expected to add 1,000 to 1,500 boe/d of natural gas production once on stream in 2025 to 2026.

Bulu divestment

As previously announced on Dec. 14, 2023, the company entered into an agreement with a third party for the sale of Criterium's 42.5-per-cent non-operated working interest in the Bulu PSC, which contains the fully appraised Lengo gas field. While awaiting completion of the purchaser's approvals, Criterium is concurrently continuing to advance its revised plan of development with the PSC partners under the terms of the joint operating agreement (JOA). Should the transaction be completed as expected, the total cash consideration would be $7.75-million (U.S.) (equivalent to approximately $10.5-million). Closing of the transaction would provide Criterium with flexibility to accelerate debt reduction and/or finance additional 2024 development drilling and production activities that would further enhance shareholder value.

Annual general meeting

The company has scheduled its annual general and special meeting for May 23, 2024, at 9 a.m. MDT open to all shareholders of record on April 8, 2024. Details of the meeting and shareholder resolutions will be provided via notice and access no later than 40 days prior to the meeting date.

Corporate presentation

For further information related to the 2024 guidance, please visit the company's updated corporate presentation available on its website.

About Criterium Energy Ltd.

Criterium Energy is an 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. Criterium intends to contribute responsible, safe and secure sources of energy to help meet this demand, while 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.

We seek Safe Harbor.