Mr. Robin Auld reports

CRITERIUM ENERGY ANNOUNCES FILING OF 2023 RESULTS, CLARIFIES PREVIOUS JANUARY 4TH PRESS RELEASE AND PROVIDES OPERATIONAL UPDATES

Criterium Energy Ltd. has filed audited full-year 2023 financials and year-end disclosures, and has provided clarification of the Jan. 4, 2024, press release, which results in a lower outstanding common share count, along with an update on current operations.

2023 financials and year-end disclosures

The company has filed its audited full-year 2023 financial statements and management's discussion and analysis to SEDAR+. The company has also filed its 2023 reserves disclosures and information circular in connection to the previously announced annual general and special meeting scheduled to take place on May 23, 2024.

Jan. 4, 2024, press release

Further to the company's press release dated Jan. 4, 2024, announcing the completion of the acquisition of all the issued and outstanding shares of Mont D'Or Petroleum Ltd., the company wishes to clarify the number of common shares in the capital of Criterium issued to one of the lenders of MOPL, being 22,235,055 at a deemed price of approximately 13 cents per share. The press release indicated 27,053,182 shares were issued the lender to the knowledge of Criterium and the MOPL lender currently holds approximately 16.8 per cent of the issued and outstanding common shares of Criterium.

The lender shares and an equal number of contingent payment rights were issued in exchange for the satisfaction of $2.25-million (U.S.) of debt pursuant to a securities-for-debt agreement dated Jan. 3, 2024, between Criterium, MOPL and the MOPL lender. Each CPR entitles the MOPL lender to a cash payment from Criterium on the third anniversary of the issuance date equal to the sum of the issuance price plus the product of the issuance price multiplied by 15 per cent per annum from the issuance date, subject to adjustment upon the sale of any lender shares prior to the maturity date.

Operational update

Criterium has completed the first set of planned workovers in the Mengopeh (MGH) field in the Tungkal PSC. The company placed the first two workover wells on production, results to date are in line with expectations of approximately 20 barrels per day of incremental production per workover and production continues to increase as a result of the work completed. The third workover well encountered damaged equipment downhole, and a result was not completed. The results of this first set of workovers will be analyzed and used to inform decisions on future workovers.

Moving into May, the company will begin its second tranche of workovers in the first half of May on already identified wells. The company anticipates two- to three-well workover programs every other month as part of its strategy of low-cost production adds. These programs are expected to deliver 12 to 15 workovers during 2024, utilizing an already contracted service rig.

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 given the current oil market. In third quarter 2024, Criterium plans to commence a drilling program at the MGH field from existing and newly constructed drilling pads.

As previously reported, the company has 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. This Tungkal PSC gas project is expected to add 1,000 to 1,500 barrels of oil equivalent per day (100-per-cent working interest) of natural gas production once on stream in 2025 and 2026.

The company also continues to progress the previously announced sale of Criterium's 42.5-per-cent non-operated working interest in the Bulu PSC. Criterium is awaiting buyer's approvals to close Bulu PSC transaction (sale price $7.75-million (U.S.) or approximately $10.5-million (Canadian)).

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.

About Criterium Energy Ltd.

Criterium (TSX Venture Exchange: CEQ) 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.