On October 17, 2024, Criterium Energy Ltd. (TSXV: CEQ), an independent upstream energy development and production company based in Calgary, Alberta, shared its preliminary operating results for the third quarter of 2024 along with updates on recent drilling activities at its 100% owned Tungkal PSC in Indonesia.
The company exited the third quarter with September production of 933 bbl/d, showing a 14% increase from the previous quarter. Additionally, gross operating costs have decreased by 25% since January 2024, resulting in a $10 per bbl improvement in operating netbacks over the year.
Criterium’s ongoing work program, focusing on low-cost well interventions and workovers, has led to positive production increases and improved incremental cash flow generation with average paybacks of less than 30 days. The company’s infill drilling program has also made progress, particularly with the MGH-43 well showing promising oil shows and the potential for a gas discovery in the Gumai formation.
Key highlights from the third quarter include achieving an average field production of 880 bbl/d in the Tungkal PSC, completing five workovers to support increased production, and achieving an average field production of 933 bbl/d in September and 950 bbl/d in October. The company reported net revenue of US$4.5 million, operating costs estimated at US$2.75 million, and an increase in operating netbacks to US$25/bbl.
Criterium has submitted technical justification for the South East Mengoepeh gas development and is actively working to complete the sale of the Bulu PSC to strengthen its balance sheet in anticipation of 2025.
The company’s drilling update for the third quarter highlighted progress on the MGH-43 well in the Tungkal PSC, though completion and testing are still underway. The company has deferred drilling the second planned infill well pending the collection of production data from MGH-43.
In addition, recent developments regarding the Bulu transaction have seen Criterium receive a second payment from the buyer, bringing the total amount received to US$1,000,000 of the US$7,750,000 total purchase price.
Criterium will be presenting at the Schachter Catch the Energy Conference in Calgary, Alberta, on October 19, 2024, providing shareholders and interested parties with further insights into the company’s operations and future plans.
