Criterium Energy Ltd. (TSXV: CEQ), an independent upstream energy development and production company focused on energizing growth for Southeast Asia, has announced that it has safely delivered first gas from the onshore, Southeast Mengoepeh (SE-MGH) field in in South Sumatra, Indonesia to the Sekernan gas sales point. The SE-MGH field is 100% operated by Criterium and located in the Tungkal PSC.
“First gas is a major development milestone in the Company’s history and the significant expected increase in production, as we ramp to commercial levels, is expected to drive improved financial performance moving forward,” said Matthew Klukas, President and CEO of Criterium Energy.
“The resulting increased cash flow will be used to fund serial development of our portfolio of natural gas assets, undertake oil optimization initiatives allowing us to capitalize on high commodity pricing, and strengthen our balance sheet as we prioritize debt repayment. The successful completion of this project is a result of hard work and thoughtful collaboration
between Criterium, the government of Indonesia, and our contractors, most notably, PT Olindo Nusa Surya. Together, from concept to production, we delivered one of the most rapid and efficient gas developments on record in the country. Our goal in the coming months and years is to grow domestic production of both gas and oil, helping Indonesia to become increasingly self-sufficient from an energy perspective.”
Favourable Southeast Mengoepeh Commercial Terms
On November 10, 2026, gas from the 21 bcf1 SE-MGH field flowed through the recently constructed 25-kilometre pipeline that ties into the existing Teluk Rendah Gas Plant operated by Jindi South Jambi B Co. Limited and then on through the 60-kilometre TRGP-Sekernan Pipeline to the delivery point. Prior to gas production, the pipeline from SE-MGH to the TRGP was pressure tested up to 1,800 psi. Initial production rates are as expected and will be reported once stabilized. Gas will be delivered pursuant to the terms of the previously completed Gas Sales Agreement with PT Perusahaan Gas Negara (Persero) Tbk at a rate of approximately US$7.00/MMBtu (equivalent to US$7.6/mcf for SE-MGH gas due to its high heating value), which includes a take-or-pay commitment providing a minimum level of contracted gas sales, providing greater price certainty and visibility over future cash flows. The agreement also provides flexibility for gas sales to increase through mutually agreed nominations as additional production becomes available.
North Mengoepeh Development Update
With commencement of production from SE-MGH, Criterium’s focus will now shift to the North Mengoepeh development where engineering and procurement has commenced. The N-MGH development will leverage the same concepts as SE-MGH and will build on the transportation, processing, and sales agreements currently in place, recognizing economies of scale from the incremental production. Criterium previously successfully re-entered two N-MGH wells, MGH-20 and MGH-32 in 2026 at rates of 2.5 mmcf/d3 and 2.1 mmcf/d4, respectively with incremental oil production observed. With testing ongoing, planned gas production from N-MGH will be transported via a to-be-constructed 14-kilometre pipeline connecting it with SE-MGH and the existing transportation, processing, and sales network now in place. Criterium anticipates incremental gas production of 2-3 mmcf/d1 with potential upside provided from by-passed gas pay zones within the MGH oil field. Additional information on the N-MGH project will be provided with the Company’s 2027 budget and guidance.
