Criterium Energy's Q4 Preliminary Operating Results: A Strong Finish to 2024

Criterium Energy Ltd. (TSXV: CEQ) has released its preliminary Q4 operating results and provided an operational update, highlighting a strong finish to 2024. The Company's focus on cost reduction, workover programs, and strategic partnerships has driven significant improvements in production and operating costs. Here's a breakdown of the key takeaways and their implications for investors.



Production Growth and Cost Reduction

Criterium Energy achieved average field production in the Tungkal PSC of 957 barrels per day (bbl/d) in Q4 2024, up from 880 bbl/d in Q3 2024. This represents a 12% increase from Q1 2024 and a 20% increase since January 2024. The Company's workover program, which involves low-cost interventions and workovers in the Mengoepeh Field (MGH), has been a significant driver of this production growth. Criterium completed four workovers during the fourth quarter, bringing the total for 2024 to 15. These workovers delivered incremental volumes on stream at less than US$2,000 per flowing barrel and have seen over 4x payback in aggregate.



In addition to production growth, Criterium Energy has successfully reduced operating costs. Q4 2024 operating costs were estimated at US$2.97 million or US$34/bbl, which is a 26% reduction from January 2024. This reduction is significantly higher than the industry average and is a testament to the Company's focus on cost control measures and utilizing produced natural gas for power generation.

Strategic Partnerships and Gas Development

Criterium Energy has made significant strides in advancing its gas development plans and securing strategic partnerships. The Company signed a Memorandum of Understanding (MOU) with PT BlueEnergy for the sale and purchase of natural gas from the Southeast Mengoepeh gas field (SE MGH). Additionally, Criterium has executed an MOU with PT Energasindo Heksa Karya (EHK) for the purchase of discovered gas from SE MGH and the Tungkal PSC. These partnerships will support the egress of produced natural gas and further reduce operating costs by utilizing gas for power generation.



Looking Ahead

Criterium Energy's strong Q4 preliminary operating results and operational update demonstrate the Company's ability to execute on its strategic plan and deliver meaningful improvements in production and operating costs. As the Company continues to advance its gas development plans and secure strategic partnerships, investors can expect to see further growth and value creation in 2025 and beyond.

In conclusion, Criterium Energy's Q4 preliminary operating results and operational update showcase the Company's ability to execute on its strategic plan and deliver meaningful improvements in production and operating costs. With a strong finish to 2024, investors can expect to see further growth and value creation in the coming years as the Company continues to advance its gas development plans and secure strategic partnerships.