5 days Ago By [email protected] (MENAFN)
( MENAFN - Newsfile Corp) Calgary, Alberta--(Newsfile Corp. - October 17, 2024) - 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 preliminary Q3 operating results and provided an update on recent drilling activities in the Company's 100% owned and operated Tungkal PSC in Indonesia (the " Tungkal PSC ").
"Criterium's ongoing work program, emphasizing low-cost well interventions and workovers, has continued to yield positive production increases, with average paybacks of less than 30 days supporting the generation of improved incremental cash flow," said Matthew Klukas, President and CEO of Criterium Energy. "Our infill drilling program also continues to push ahead, with the MGH-43 displaying good to excellent oil shows across multiple reservoir zones in the proven Talang Aker Formation and an encouraging potential discovery of wet gas in the shallower Gumai formation. More broadly, we remain focused on extracting maximum value from across our portfolio of assets and are actively working with the buyer to complete the sale of the Bulu PSC, which will help strengthen our balance sheet as we move into 2025.
" Selected Q3 Operating and Financial Highlights The Company expects full third quarter financials and MD&A will be released in late November. Drilling Update During the third quarter, the Company initiated its 2024 infill drilling campaign on the Tungkal PSC, focused on untapped areas in the MGH field, targeting multiple pay zones within the Talang Akar Formation (the " TAF "). The fluvial deltaic reservoir within the TAF features on average 20 to 25 metres of net pay, with 10 to 20% porosity and 50 to 100 millidarcies of permeability, reservoir characteristics that are typically associated with higher productivity.
MGH-43, the first of two planned infill wells, spud on September 14th and reached its target of 1,238 metres Measured Depth (" MD ") on September 29, 2024. The well intersected multiple reservoir zones in the TAF with good to excellent oil shows. Logging completed on MGH-43 identifies prospective producing intervals in the CT, CH, EL, EH, F, and GH intervals.
These total an estimated 41m of prospective gross sand interval3 that will be perforated upon completion of the well. The Company also identified approximately 13m of Net Pay3 potential gas bearing sands in the Gumai formation (~500 - 580m MD). The Gumai zone is present throughout the MGH field and has indications of hydrocarbons but has not been tested.
The Company is currently evaluating how this discovery could complement the SE MGH gas development. Due to unstable hole conditions in MGH-43, the Company was unable to conduct pressure testing and resistivity calculations on the zones of interest and therefore is unable to determine estimated productivity rates prior to the well being put on production. In addition, seven-inch production casing was unable to be set below 1098m MD, and as a result the Company is unable to fully test or produce the lower CL zones which had demonstrated good oil shows during drilling.
Due to the lack of pressure data and ongoing completion of MGH-43, the Company has decided to defer drilling the 2nd planned infill well until such time as the production data has been collected from MGH-43. MGH-43 is currently being completed and tested prior to being put on production, which is anticipated towards the end of October. Additional information on the preliminary results of MGH-43 is available in the corporate presentation, which can be found on the Company's website .
Bulu Transaction Update On September 5th 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.
Criterium firmly believes closing the transaction represents the optimal approach to value creation for shareholders in the near-term. Criterium anticipates closing of the Transaction to occur in Q4 2024, which remains contingent upon the buyer's ability to secure the necessary financing. Presenting at Schachter Catch the Energy Conference Criterium will be presenting at the Schachter Catch the Energy Conference in Calgary, Alberta on Saturday, October 19th at 2:40 p.
m. MT. Investors interested in attending the conference can obtain more information here .
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 and review a recent corporate presentation, and to follow the Company on X (formerly Twitter) at and on LinkedIn at 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 house 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: MENAFN17102024004218003983ID1108790380 Legal Disclaimer: MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article.
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