Criterium Energy Announces 2024 Year End Results and Provides Operational Update

• Continued quarter over quarter increases in cash flow from operations in 2024; Q4 2024 operating cash flow of US$1.7 million¹, equivalent to C$0.07/share² on an annualized basis.
• Reduced debt principal by US$2.5 MM in 2024.
• Average oil production for Q1 2025 of 988 bbl/d³, a 3% increase from Q4 2024 production of 957 bbl/d³.
• Gas development on track; SE-MGH (2C Resource of 15 bcf⁴) to be first of several gas developments within the Tungkal PSC.

Calgary, Alberta--(Newsfile Corp. - May 12, 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 financial results for the fourth quarter and year ended December 31, 2024 and provided an update on recent production and development activities in the Company's Indonesian portfolio.

"Building on the successes of 2024, our focus remains on meaningfully growing and diversifying production, largely through a focus on near-term development of our core gas assets in the Tungkal PSC, while maintaining oil production near current levels," said Matthew Klukas, President and CEO of Criterium. "Our strong regional focus, track record of reducing costs, and ability to attract premium pricing for gas and oil production, combined with the Indonesian government's desire to bring discovered resources online to meet domestic demand, leaves us well positioned to act on a series of gas opportunities, one after the other, to weather shifting macroeconomic conditions and build significant value in Criterium as an organization."

Highlights

Fourth Quarter and Year-End 2024 Results

• Production growth: Production volumes averaged 957 bbl/d³ in Q4 2024, a 33% increase when compared with asset production levels in Q4 2023, highlighted by a 65% production increase in the Mengoepeh oil field realized through a successful, 15-well workover campaign.

• Positive Cash Flow from Operations: Funds flow from operations¹ ("FFO") for the fourth quarter was US$1.7 MM (C$0.07/share² on an annualized basis), 65% higher than Q3 2024 due to higher production and reduced operating costs as a result of cost saving initiatives implemented earlier in the year.

• Operating cost reduction: Q4 2024 operating costs, including G&A and corporate costs, were US$2.2 million or US$25/bbl³, which is a 40% reduction from Q1 2024 when Criterium acquired the assets. Lower costs were due to implementation of cost control measures and the use of produced natural gas for power generation, reducing diesel purchase and consumption.

• New reserve report highlights improved value across the portfolio: The new report dated March 14, 2025 and prepared by ERCE Australia Pty Ltd. ("ERCE") with an effective date of December 31, 2024 (the "ERCE Report") points to 2P reserve NPV10 before tax of US$72.8 million and US$60 million after tax, equating to C$0.62 per common share². 2024 production of 0.32 MMbbl³ of oil combined with 0.51 MMbbl of 2P Reserve additions, represents a 160% Reserve Replacement Ratio⁹. This implies a 2P reserve life index of 14.3 years which management believes underlines the longer-term potential of the Company's portfolio of assets. The 2P reserves number represents a recovery factor of 11.5% for the Mengoepeh ("MGH") field and 19.6% for the Pematang Lantih ("PLT") field⁵, which management believes can be improved through the use of secondary recovery techniques which are currently being reviewed. For more information, refer to the press release dated March 17, 2024.

• Increased gas resource: The ERCE Report highlights the Southeast Mengoepeh ("SE-MGH") and Macan Gedang gas discoveries with 2C contingent resources of 15 bcf and 13 bcf respectively. The 2C gas resource for SE-MGH increased 100% versus estimates from a previous evaluation conducted in 2023 and commissioned by the former Tungkal PSC owner. These two discoveries will underpin Criterium's production diversification and the Company is targeting first gas from SE-MGH in Q1 2026 at rates of 5 - 7 mmscf/d⁴.

• Managing balance sheet: In 2024 Criterium paid down US$2.5 MM of debt (C$0.03/share²), adjusting where required to ensure the Company's capital program could be executed. Outstanding debt at December 31, 2024 is US$23 million and holds a weighted average cost of lending of 8%.

Q1 2025 Operating Update

• Production on track: Achieved average field production in the Tungkal PSC of 988 barrels per day³ ("bbl/d") in Q1 2024, up from 957 bbl/d³ in Q4 2024. The increase reflects additional workovers conducted in December, offset by reductions associated with pump failures in the Pematang Lantih field, which took ~60-80 bbl/d offline in February. 2025 production guidance remains 1,000 - 1,200 bbl/d. Engaged production technology specialist to audit oil and gas facilities and wells and to provide actionable items for continued improvement

• Sustained robust netbacks: Operating netbacks were relatively stable at US$25/bbl⁶ in the first quarter despite a ~US$5/bbl reduction in oil price, reflecting the increased premium the Company received to Brent of ~US$3.5/bbl in Q1 2025.

• SE-MGH gas development remains an immediate focus: Project is on-track with well-site preparations commenced in Q2 2025. Bringing the 15 Bcf 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.

• 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 including Macan Gedang (contingent resources of 13 bcf⁴), Cerah (best case prospective resources of 26 bcf⁴), and MGH Pad-3 (volumes under evaluation) over the next two to three years.

Adjusted Financial and Operational Summary¹

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 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 (MGH Pad-3), and 2008 (Cerah-1). Despite five discovered gas fields in the Tungkal PSC, there has been little to no development previously due to a limited regional gas market and no proximate 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 over the next two to three years.

Initially, the intent is to focus on the SE-MGH field, targeting production in Q1 2026 from the Talang Akar Formation ("TAF"). In advancing its program for gas development the Company recently announced it had taken the following steps:

Development Plan Approval: In 2024, Criterium completed a technical feasibility study for the development plan of the SE-MGH gas field in the Tungkal PSC and submitted it to the government for inclusion in the existing Mengoepeh Plan of Development, avoiding the need for a standalone plan. The submission was approved in the fourth quarter of 2024, reducing the government approvals and time required to bring gas on stream.

MOU with PT Energasindo Heksa Karya (EHK): To support its gas development strategy, Criterium successfully executed an MOU during Q2 2024 with PT Energasindo Heksa Karya ("EHK"), a company owned by Rukun Raharja and Tokyo Gas. Under the agreement, EHK will purchase discovered gas from SE-MGH and the Tungkal PSC via a new pipeline connecting SE-MGH to the Teluk Rendah Gas Plant ("TRGP").

MOU with PT BlueEnergy and ModularLNG Technology: During the fourth quarter of 2024, Criterium signed an MOU with PT BlueEnergy to support the egress of produced natural gas using Galileo Technologies' Modular LNG technology. The Cryobox™ LNG Production Station provides a modular and transportable solution for liquefying natural gas directly at the source. This technology enables efficient on-site gas processing, addressing the challenges of stranded gas by eliminating the need for and associated environmental impact of extensive pipeline infrastructure.

During the next 12 months, key milestones anticipated for gas development in the SE-MGH field include:

• Project development including site preparation, which has already commenced.
• In early Q3 2025 the Company expects to conduct an extended well test on the existing SE-MGH well, which had previously tested at 8 MMcf/d¹⁰, to confirm deliverability and gas composition.
• Following the completion of the extended well test the Company expects to enter into a gas sales agreement and the buyer/offtaker is expected to begin required site preparations.
• First gas sales are anticipated in Q1 2026, at which time the Company will progress to further opportunities within its existing portfolio.

The estimated capital expenditure required to reach first gas is approximately US$3-5 million net to Criterium. Initial production is expected to range between 5 - 7 MMcf/d⁴ (900 - 1,250 boe/d⁷). Pricing will be determined by the successful execution of a gas sales agreement, but recent historical contracts in South Sumatra have ranged between $5 - $7/MMbtu⁸ on a long-term fixed take-or-pay basis. Further information on SE-MGH including estimated development costs, timeline, and technology is available in the 2025 Guidance Presentation on the Company's website.

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/d¹⁰, with the intention of bringing production online in late 2026 or early 2027. The ERCE Report indicated a 2C gas resource at Macan Gedang of 13 bcf. Both SE-MGH and 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, as shared in the press release dated February 13, 2025.

In addition to SE-MGH and Macan Gedang, the Tungkal PSC contains additional discovered gas that is not included in the 2024 ERCE Report. Specifically, (i) MGH Pad-3 in the MGH field, four wells in the northern area were shut-in in 2014 due to high gas-to-oil ratios and lack of infrastructure necessary to commercialize the gas production; (ii) gas was also encountered in the Gumai formation during the drilling of the MGH-43 infill well which is still being evaluated; and (iii) 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 recoverable⁴. 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.

Bulu Transaction Update

On September 5^th 2024, Criterium received a second US$500,000 non-refundable payment from the buyer of its wholly owned subsidiary which owns a 42.5% non-operated working interest in the Bulu Production Sharing Contract, as originally announced on May 21, 2024. Inclusive of this US$500,000 payment, to date Criterium has received US$1,000,000 of the US$7,750,000 total purchase price consideration for the transaction. Management continues to work with the original buyer to close the transaction, however, it is also accelerating the development of alternatives to unlock value for shareholders, including taking an increasingly active role in the development of the Lengo gas field, as well as progressing discussions with other buyers.

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, supported by a new round of workovers, and its ongoing gas development program, which it expects to fund from cash flow. 2025 production is expected to average between 1,000 and 1,200 bbl/d. Management believes there is potential to further step-up production by duplicating its SE-MGH development strategy, 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 the realized operating cost reductions realized in 2024, the Company is primed to materially increase and diversify production in the near term.

2024 Year End Financials and Accounts and 2025 Notice of Annual General Meeting

The related audited consolidated financial statements, as well as Management's Discussion and Analysis ("MD&A") for the year ended December 31, 2024 and Annual Information Form ("AIF") as of December 31, 2024, are now available on SEDAR+ at www.sedarplus.ca and on Criterium's website at www.criteriumenergy.com.

The 2025 Annual General Shareholder Meeting ("AGM") will be held at the Criterium Energy Ltd. Office, Bow Valley Square 1, 202 6 Ave SW, #1120 Calgary, AB T2P 2R9 on June 17 2025 at 9:00 a.m. MST, and an information circular which includes notice of the AGM, is also available on SEDAR+ at www.sedarplus.ca and on Criterium's website at www.criteriumenergy.com.

The Board recognizes the importance of the AGM and affirms the Company's commitment to ensuring that shareholders can vote and engage during the meeting. Shareholders who are unable to attend the AGM may submit questions related to the business of the meeting in advance by email to info@criteriumenergy.com, please include "2025 AGM" in the subject line. In so far as is relevant to the business of the meeting, questions will be responded to by email and considered as appropriate in the meeting itself.

As previously announced the Company applied for a Management Cease Trade Order "MCTO" with the Alberta Securities Commission as the financial statements had not been filed prior to the April 30^th deadline. Subsequent to the last press release the MCTO application has been granted and will be lifted two trading days after the filing of the financial statements.

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 (www.criteriumenergy.com) or contact:

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.

NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR DISSEMINATION IN UNITED STATES.

Notes

¹ Includes lifting of 40,500 bbls that occurred in January 2025, attributed ~C$3.4MM in revenue and ~C$2.0MM to Q4 2024 Funds Flow based on capitalized inventory numbers in the Company YE 2024 Financial Statements

² Assumes F/X rate of 0.70 CAD/USD and common shares outstanding as of May 2, 2025 of 136,375,234

³ Estimate based on field production reports.

⁴ 2024 Report: Reserve Report commissioned by Criterium Energy Ltd. and prepared by ERCE Australia Pty. Ltd, an independent reserves evaluator and auditor, dated March 14, 2025 with effective date of December 31, 2024 (the "2024 Report"), which was prepared in accordance with the definitions, standards, and procedures contained in the Canadian National Instrument 51-101 Standards of Disclosure of Oil and Gas Activities. The Reserve Report will be made available on Criterium's SEDAR profile.

⁵ Recovery factor is based on information from the 2024 report, specifically oil in place calculations, technical recoverable reserve calculations, and production data up to December 31, 2024.

⁶ Non-IFRS financial measure or ratio that does not have any standardized meaning as prescribed by International Financial Reporting Standards, and therefore, may not be comparable with calculations of similar measures or ratios for other entities. See "Advisories - Non-IFRS and Other Financial Measures" contained within this press release and in the Company's most recently filed MD&A, available on SEDAR+ at sedarplus.ca. Netback is calculated by subtracting direct operating costs from net revenue and dividing by the amount of barrels produced over the same time frame.

⁷ "Barrel Oil Equivalent" or "BOE" is determined by converting a volume of natural gas to barrels using the ratio of 5.615 Mcf to one barrel. BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 5.615 Mcf:1 BOE is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

⁸ Recent sales in South Sumatra may not be indicative of future pricing for the SE-MGH and solely relying on non-public information such as gas sales agreements may be misleading.

⁹ Calculation of Reserve Replacement Rations is based on a Report commissioned by Mont D'Or Petroleum Ltd. and prepared by ERCE Limited dated March 15,2023, which was prepared in accordance with the definitions, standards, and procedures contained in Canadian National Instrument 51-101 Standards of Disclosure of Oil and Gas Activities. This report is available on Criterium's SEDAR profile.

¹⁰ SE-MGH gas test duration was approximately 5 days and produce through 40/64" choke. Macan Gedang gas test duration was approximately 2 days and produced 4.6 MMscfd through a 48/64" choke

Abbreviations

Cautionary Note Regarding Forward-Looking Statements

This press release contains certain forward-looking information and statements that are based on expectations, estimates, projections, and interpretations as at the date of this news release. The use of any of the words "expect", "anticipate", "continue", "estimate", "may", "will", "project", "should", "believe", "plans", "intends", "seek", "aims" and similar expressions are intended to identify forward-looking information or statements.

Factors that could cause actual results to vary from forward-looking statements or may affect the operations, performance, development and results of Criterium's businesses include, among other things: risks and assumptions associated with operations; risks inherent in Criterium's future operations; increases in maintenance, operating or financing costs; the availability and price of labour, equipment and materials; competitive factors, including competition from third parties in the areas in which Criterium intends to operate, pricing pressures and supply and demand in the oil and gas industry; fluctuations in currency and interest rates; inflation; risks of war, hostilities, civil insurrection, pandemics, instability and political and economic conditions in or affecting Indonesia or other countries in which Criterium intends to operate (including the ongoing Russian-Ukrainian conflict); severe weather conditions and risks related to climate change; terrorist threats; risks associated with technology; changes in laws and regulations, including environmental, regulatory and taxation laws, and the interpretation of such changes to Criterium future business; availability of adequate levels of insurance; difficulty in obtaining necessary regulatory approvals and the maintenance of such approvals; general economic and business conditions and markets; and such other similar risks and uncertainties. The impact of any one assumption, risk, uncertainty or other factor on a forward-looking statement cannot be determined with certainty, as these are interdependent and the Company's future course of action depends on the assessment of all information available at the relevant time. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.

With respect to forward-looking statements contained in this press release, Criterium has made assumptions regarding, among other things: future exchange and interest rates; supply of and demand for commodities; inflation; the availability of capital on satisfactory terms; the availability and price of labour and materials; the impact of increasing competition; conditions in general economic and financial markets; access to capital; the receipt and timing of regulatory and other required approvals; the ability of Criterium to implement its business strategies; the continuance of existing and proposed tax regimes; and effects of regulation by governmental agencies.

The forward-looking statements contained in this press release are made as of the date hereof and the parties do not undertake any obligation to update or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

Non-IFRS and Other Financial Measures

Throughout this press release and other materials disclosed by the Company, Criterium uses certain measures to analyze financial performance, financial position and cash flow. These non-IFRS and other specified financial measures do not have any standardized meaning prescribed under IFRS and therefore may not be comparable to similar measures presented by other entities. The non-IFRS and other specified financial measures should not be considered alternatives to, or more meaningful than, financial measures that are determined in accordance with IFRS as indicators of Criterium's performance. Management believes that the presentation of these non-IFRS and other specified financial measures provides useful information to shareholders and investors in understanding and evaluating the Company's ongoing operating performance, and the measures provide increased transparency and the ability to better analyze Criterium's business performance against prior periods on a comparable basis.

Operating Netback per bbl

Operating netback per bbl equals petroleum sales less royalties and net opex calculated on a per bbl basis. Management considers operating netback per bbl an important measure to evaluate its operational performance as it demonstrates its field level profitability relative to current commodity prices.

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