Criterium Energy Announces Positive Preliminary Gas Test Results At North Mengoepeh And Provides Preliminary Q2 Operating Results

• Successful initial flow test on the MGH-20 well in North Mengoepeh with an initial rate of 2.5 MMcf/d ¹
• Re-entry operations at the SEM-1 well in SE-MGH are ongoing in preparation for extended well test in Q3
• Decision taken that development of SE-MGH will be via pipeline to the Teluk Rendah Gas Plant
• Averaged 890 bbl/d ² of production in the second quarter of 2025, up from 821 bbl/d ² in the same quarter of the prior year.

Calgary, Alberta--(Newsfile Corp. - July 30, 2025) - 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 a successful preliminary flow test at the North Mengoepeh ("N-MGH") gas field, and ongoing preparations to test in Southeast Mengoepeh ("SE-MGH"), in addition to providing preliminary operating results for the three-month period ended June 30, 2025.

"We have recently made meaningful forward progress on our gas development program with positive initial results at N-MGH expected to be additive to our gas production volumes in 2026, should we complete a successful test at SE-MGH," said Matthew Klukas, President and CEO of Criterium Energy. "A successful test of SE-MGH will underpin a gas sales agreement and pipeline development that will allow us to achieve first gas in early 2026, which would in-turn support development of other gas assets in due course as we leverage initial successes to fund the next rounds. The positive test at N-MGH suggests the emergence of building gas potential for Criterium that can help grow our production and business over the near-, mid- and longer-term while supporting the strong appetite and market for domestic natural gas in Indonesia."

Second Quarter 2025 Operating Update

• Successful North Mengoepeh production test: MGH-20 tested 2.5 mmcf/d with associated oil¹, thus suggesting commercial flow rates from the N-MGH field. MGH-20 had been previously suspended in 2014. The gas resource contained in the N-MGH field, currently not included in the Company's reserve or resource estimates, has the potential to increase total gas production as a near-term follow-up to SE-MGH.
• SE-MGH gas development remains an immediate focus: Development is advancing with re-entry operations ongoing in preparation for an extended well test commencing this quarter. Bringing the 15 bcf³ 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 and N-MGH including Macan Gedang (contingent resources of 13 bcf³), Cerah (best case prospective resources of 26 bcf³), and MGH-43 (volumes under evaluation) over the next two to three years.
• Negotiated debt-repayment holiday with lenders : In the face of lower oil prices, management successfully negotiated a pause in debt-repayments with its lenders, which is expected to last through the balance of 2025 and allow the Company to focus its resources on its gas development activities.
• Production remains up over 2024: Achieved average field production in the Tungkal PSC of 890 barrels per day² ("bbl/d") in Q2 2025, up from 821 bbl/d² in Q2 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 June. Criterium engaged a production technology specialist to audit its oil and gas facilities and wells, providing actionable items for continued production improvements.
• Operating costs stable: Direct operating costs remained steady for the quarter at US$2.7 million (US$33/bbl)²
• Sustained robust netbacks: Operating netbacks were relatively stable at US$22/bbl⁴ in the second quarter despite a ~US$5/bbl reduction in oil price. On average the Company received a premium of US$3/bbl premium to Brent in Q2 2025.

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 ("GSAs") 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"), followed by the N-MGH field which also produces from the TAF.

The Company recently conducted an initial flow test at the re-entered MGH-20 well in N-MGH, which flowed 2.5 MMcf/d through a 8/64" choke over a 24 hour period¹. Next steps include mobilizing the Company's service rig, following completion of the extended well test at SE-MGH, to conduct an extended well test of MGH-20 and three additional wells on the N-MGH well pad, all of which are currently shut-in.

With the positive indications from the MGH-20 well test, Criterium intends to test and develop the N-MGH field with gas production expected from two wells (MGH-20 and MGH-32). Commercial production rates will be confirmed following extended flow tests to be conducted in H2 2025.

Should the Company successfully complete a flow test of SE-MGH, and with the potential additional volume from N-MGH, management would elect to develop the initial Tungkal gas fields via a pipeline, tying in to nearby gas infrastructure at the Teluk Rendah Gas Plant. Development via pipeline has several advantages including attracting a higher gas price and maintaining the ability to increase production from adjacent fields with minimal capital. It is expected that funding for the pipeline will be provided by a third party underpinned by a GSA.

During the next 12 months, key milestones anticipated for gas development in the Tungkal PSC field include:

• Completing the extended well test on the existing SE-MGH well in Q3 2025, which had previously tested at 8 MMcf/d⁵, to confirm deliverability and gas composition.
• Following completion of the extended well test at SEM-01 the Company expects to enter into a GSA with the buyer/offtaker expected to begin required site preparations.
• Mobilizing the Company's rig to conduct extended well testing at MGH-20 and MGH-32 in N-MGH.
• Subject to successfully completing testing in Q3 2025, first gas sales from SE-MGH are anticipated in Q1 2026, at which time the Company will progress to further development opportunities within its existing portfolio.

The estimated capital expenditure required to reach first gas for SE-MGH is approximately US$3-5 million net to Criterium. Initial production is expected to range between 5 - 7 MMcf/d³ (900 - 1,250 boe/d⁶) with potential to increase shortly after with the parallel development of N-MGH, which initially tested 2.5 MMcf/d¹. Pricing will be determined by the successful execution of a GSA, but recent historical contracts in South Sumatra have ranged between US$5 - $7/MMbtu⁷ on a long-term fixed take-or-pay basis. A development plan for N-MGH will be confirmed after the completion of the extended well tests of MGH-20 and MGH-32 in H2 2025.

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 indicated a 2C gas resource at Macan Gedang of 13 bcf. 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, N-MGH, and Macan Gedang, the Tungkal PSC contains additional discovered gas. Specifically, (i) the Cerah-1 well, drilled in 2008 encountered gas shows in the Gumai formation but was not tested at the time due to low gas prices and lack of nearby infrastructure. Best case prospective resources in Cerah are expected to be 26 Bcf recoverable³; and (ii) gas was also encountered in the Gumai formation during the drilling of the MGH-43 infill well which is still being evaluated. 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.

Indonesian Gas Sales Agreements and Criterium's strategy
With a backdrop of growing energy demand and energy security a top priority for Indonesia, domestic GSAs offer significant benefits to Criterium as they provide a stable long-term fixed price. The fixed nature of these contracts means Criterium's gas production is not subject to external price fluctuations as it is with oil sales, which helps build a more steady cash flow profile and gives greater confidence in future capital planning. These advantages, combined with favorable capital efficiency for the gas projects at SE-MGH currently projected to be brought online for approximately US$4,000 per flowing boe, will reduce the Company's unit operating cost by 40-50% to US$16-18/boe⁹.

Criterium's emphasis on gas development is aligned with our strategic approach to grow stable and sustainable production by investing in projects with short cycle return due to favorable markets and nearby accessible infrastructure. This strategy is aligned with the Government of Indonesia's objectives and builds Criterium's attractiveness as a trusted partner and operator.

Bulu Transaction Update

Criterium remains committed to the original transaction dated May 21, 2024, however, given the significant delays experienced in closing, the Company has taken an increasingly active role in the development of the Lengo gas field. In June 2025, Criterium notified KrisEnergy (Satria) Ltd., the operator of the Bulu PSC, of numerous breaches and deficiencies of the Joint Operating Agreement ("JOA"), in regards to the lack of development of the Lengo gas field. Should the deficiencies not be remedied, Criterium intends to take further action allowable under the JOA to permit development to proceed.

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, 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 believes there is potential to further step-up production by duplicating its SE-MGH development strategy, by 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 operating cost reductions realized in 2024, the Company is primed to materially increase and diversify production in the near term.

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 website , review a recent corporate presentation , and follow the Company on X (formerly Twitter) and LinkedIn for ongoing corporate updates and relevant international oil and gas industry information.

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 ( ) or contact:

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