Criterium Energy Ltd (TSXV: CEQ), an independent upstream energy development and production company focused on energizing growth for Southeast Asia today announced that it has entered into a definitive Gas Sales Agreement with PT Perusahaan Gas Negara (Perseo) Tbk (PGN) for the supply of natural gas and released its unaudited financial
results for the second quarter ended June 30, 2026.
- Signed Gas Sales Agreement with PGN secures offtake for Tungkal PSC gas production at fixed long-term pricing, supporting SE-MGH production and further development.
- SE-MGH gas development ongoing with project now approximately 85% complete; targeting first gas in September 2026
- Positive cash flow from operations of C$1.5 million in Q2 2026, contributes to increased cash position of C$2.4 million, supporting improved liquidity prior to first gas
“Signing the Gas Sales Agreement is a major milestone for Criterium as it will provide stable and long-term fixed pricing for our gas production from SE-MGH,” said Matthew Klukas, President and CEO. “With the project approximately 85% complete and the most technically complex portion of pipeline construction behind us, our focus is now on completing back-filling, commissioning, and start-up.”
“First gas is expected to more than double our production and provide contracted cash flow to support both balance sheet improvement and our next phase of low-cost gas development at North Mengoepeh, Macan Gedang and Cerah. Over the longer-term, our broader goal is to actively pay down debt, even as we work to fund our next stage of growth. In time, we expect to become an even stronger partner for Indonesia, helping to further offset the country’s reliance on imported oil and gas.”
Gas Sales Agreement in place
The GSA provides Criterium with a long-term, contracted market for natural gas production from the Tungkal PSC through to 2040. The GSA includes a take-or-pay commitment providing a minimum level of contracted gas sales, together with a fixed long-term gas price this provides 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. Specific commercial terms of the GSA, including contracted volumes and pricing, are subject to confidentiality provisions and cannot be publicly disclosed. The Company can confirm that the contracted gas price is consistent with recently executed domestic gas sales agreements in Indonesia and reiterates its previous guidance for realized gas pricing in the upper range of US$6.00 to US$7.00/MMBtu, which equates to US$6.5 – $7.6/mscf for SE-MGH gas due to its high heating value.
The GSA was entered into between Mont D’Or Oil Tungkal Limited, a wholly owned subsidiary of Criterium Energy Ltd., and PGN on August 31, 2026, on an arm’s-length basis. PGN is Indonesia’s largest natural gas transportation and distribution company and provides Criterium with a highly credible domestic offtake counterparty for the development of its gas resources.
