Calgary, Alberta--(Newsfile Corp. - September 6, 2024) - Criterium Energy Ltd. (TSXV: CEQ) ("Criterium" or the "Company"), is pleased to announce the following key executive leadership appointments. In addition, the Company confirms the imminent spud of MGH-43, the first of two planned and operated infill wells to be drilled from a new well-pad within the proven Mengoepeh ("MGH") field situated on its 100% owned and operated Tungkal PSC (the "2024 Program").
Executive Appointments
Effective immediately, Criterium is pleased to confirm the following appointments to its Executive Leadership team with bios for each individual outlined below.
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Mr. Matthew Klukas has been appointed President and Chief Executive Officer ("CEO") of the Company, transitioning from his previous role as Interim CEO;
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Dr. Henry Groen has resigned his position as Chief Financial Officer ("CFO") of Criterium and has been appointed as a special advisor to the Company; and
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Mr. Andrew Spitzer has been appointed CFO of the Company, assuming the role from Dr. Groen and transitioning from his previous role as VP Corporate Development.
Matthew Klukas is a proven leader in managing multi-disciplinary teams and brings extensive oil and gas technical and commercial experience in SE Asia. Mr. Klukas is a Professional Geophysicist and holds an MBA, with over 15 years of experience in business development and operations. He has demonstrated leadership skills and relationship-building in Criterium's target markets. Prior to assuming the role of Interim CEO in June of 2024, Mr. Klukas served as the Company's Chief Operating Officer since its recapitalization transaction in the fall of 2022 and has been instrumental in the development and execution of the Company's strategy to date. Prior to Criterium, Mr. Klukas worked for Talisman Energy/Repsol in SE Asia.
Dr. Henry Groen previously served as the Company's CFO since its recapitalization transaction in the fall of 2022. With his corporate knowledge of the organization, proven skills in finding cost-effective operating, commercial and financial solutions and leading multi-disciplinary and multi-national teams, he will continue to be a meaningful contributor to the team at Criterium. Dr. Groen has over 40 years of experience in the energy sector and prior to Criterium, was VP and Deputy General Manager for Talisman Vietnam and Truong Son Joint Operation Company, and Assistant General Manager for Talisman Asia Limited. He has held various managerial, and financial roles in Indonesia with Talisman Energy, focused on South Sumatra and East Java. He holds a doctorate in business administration, thesis based on Corporate Social Responsibility within the energy sector in SE Asia.
Andrew Spitzer is an experienced business professional with a focus on delivering shareholder value and internal performance management. With over 15 years of corporate planning and financial experience in North America and overseas, Andrew brings a progressive track record across finance and asset development, corporate planning, A&D processes, performance reporting, and monetization options. He has successfully managed teams through corporate transactions at Talisman Energy/Repsol and supported the related transition activities. Mr. Spitzer served as the Company's VP of Corporate Development since January 2023, and has been a key figure in driving the Company's overall financial strategy.
"These leadership changes mark an exciting new chapter for our organization, and we are confident that Matthew, Andrew, and Henry bring the experience, vision, and passion necessary to continue driving our mission forward. All three have demonstrated exceptional leadership, a deep commitment to our values, and possess the experience and knowledge of the sector and region to achieve outstanding results" stated Criterium Chair of the Board Datuk Brian Anderson.
Commencement of Drilling
The Company has begun endurance testing of the drilling equipment and expects to spud its first operated well, MGH-43 over the next 24-48 hours, commencing the 2 well 2024 drilling program.
The 2024 Program intends to access untapped areas in the MGH Field, targeting multiple pay zones within the Talang Akar Formation (the "TAF"). The Fluvial Deltaic reservoir features 20 to 25 metres of net pay, with 10 to 20% porosity and 50 to 100 millidarcies of permeability on average, reservoir characteristics that are typically associated with higher productivity. The MGH Field and the planned infill locations are mapped on 3D seismic and located less than 1 km from the central processing facility, mitigating risks related to potential deliverability and access to markets.
Approximately 300 bbl/d (150 bbl/d per well)1 of incremental light oil (35° API) production is expected to be added from the 2024 Program, which commands premium Brent pricing and benefits from existing infrastructure utilization. The volumes from both wells are expected to be on-stream in November of 2024, producing into nearby MGH facilities. By deploying a production strategy that requires lower capital, the total cost of the 2024 Program is anticipated to be US$4.5 million, including drilling, completion and tie-in. While Criterium plans to build a pipeline along the fence line in the future, volumes will initially be trucked via an existing access road, with well pressures maintained using progressive cavity pumps.
In addition to benefiting from the additional US$500,000 payment received from the Bulu Transaction as announced on September 5, 2024, Criterium is committed to its continued focus on cost reductions, netback enhancements and deleveraging efforts, balanced with value-maximizing capital allocation. As a growth-focused entity, the Company plans to further advance the expansion of its production and reserves base, to support the generation of positive cash flow.
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 https://x.com/CriteriumEnergy and on LinkedIn at https://www.linkedin.com/company/criterium-energy/ 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 (www.criteriumenergy.com) or contact:
Investors are cautioned that, except as disclosed in the management information circular or filing statement to be prepared in connection with the Acquisition, any information released or received with respect to the Acquisition may not be accurate or complete and should not be relied upon. Trading in the securities of Criterium should be considered highly speculative.
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.
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.
1 Management estimate based on previously disclosed 'Mont D'Or Venture Limited YE Evaluation' reserve and resource report, effective December 31, 2022. This report was conducted by an independent qualified reserves evaluator or auditor in accordance with the COGE Handbook.
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