Fuelling future prosperity: Energizing growth for SE Asia and shareholders
Tungkal PSC - South Sumatra | February 2024 |
Disclaimers and key terms
The information in this presentation is provided as of February 29, 2024 for informational purposes only, is not complete and does not contain all material information about Criterium Energy Ltd. or the management team ("Criterium" or "Company" or "Management"), including important disclosures and risk factors associated with the current business plans and objectives of Management. This Presentation is not intended to provide financial, tax, legal or accounting advice and do not purport to contain all the information that a prospective investor may require. Each prospective investor should perform and rely on its own investigation and analysis of the Company and the terms of any offering of the securities referenced herein, including the merits and risks involved, and are advised to seek their own professional advice on the legal, financial and taxation consequences of making an investment in the Company.
Forward Looking Information. Certain statements contained in this Presentation are forward looking statements. These forward-looking statements are not based on historical facts but rather on the expectations of management of the Company regarding the resulting company's future performance. All statements, other than statements of historical fact, may be forward looking statements. Forward looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "project", "predict", "propose", "potential", "targeting", "intend", "could", "might", "should", "believe" and similar expressions. Although the Company believes in light of the experience of its officers and directors, current conditions and expected future developments and other factors that have been considered appropriate that the expectations reflected in this forward-looking information are reasonable, undue reliance should not be placed on them because the Company can give no assurance that they will prove to be correct, and actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements. Forward-looking statements contained in this Presentation include, but are not limited to, statements with respect to the Company's business strategy, the market in which the Company operates; the ability of the Company to successfully integrate businesses; the timing and nature of equity offerings to be completed by the Company; the Company's potential revenue; the ability of the Company to successfully complete mergers and acquisitions; the ability of the Company to realize on the potential of target companies; and other expectations, beliefs, plans, objectives, assumptions, intentions or statements about future events or performance. Forward-looking statements contained in this Presentation reflect the current beliefs and assumptions of the Company's management based on information in its possession as of the date of this Presentation. The material risk factors that could adversely impact on the forward looking information and assumptions include, but are not limited to: (i) the inability to obtain equity and debt financing on terms acceptable to it, or at all; (ii) the uncertainty of estimates and projections relating to the Company's industry; (iii) fluctuations in interest rates; (iv) the risks of the competition; (v) the possibility that government policies or laws may change or governmental approvals may be delayed or withheld; and (vi) the risk and changes of international, national and regional economic and business conditions. The foregoing list of risk factors is not exhaustive. Readers are cautioned that the foregoing list is not exhaustive. The forward looking statements contained herein are expressly qualified in their entirety by this cautionary statement. The forward looking statements included in this Presentation are made as of the date of this Presentation and the Company does not undertake and is not obligated to publicly update such forward looking statements to reflect new information, subsequent events or otherwise unless so required by applicable securities laws.
Future Oriented Financial Information. The future orientated financial information contained in this Presentation are examples only and are not a guarantee or representation of the future performance of the Company and should not be relied upon to indicate a potential rate of return that may be earned by an investor.
Statutory Rights of Rescission. Securities legislation in each of the Provinces in which securities will be sold, provides investors with remedies for rescission or, in some jurisdictions, damages, if this Presentation contains a misrepresentation, provided that the remedies for rescission or damages are exercised by the investor within the time limit prescribed by the securities legislation of the investor's province. An investor should refer to any applicable provisions of the securities legislation of the investor's province for the particulars of these rights or consult with a legal adviser.
UNLESS INDICATED OTHERWISE, ALL DOLLAR AMOUNTS IN THIS PRESENTATION ARE EXPRESSED IN USD.
Barrel of oil equivalent (BOE) is equivalent to 6 mmscf of gas
All forecasts are based on $80/bbl brent pricing
The Reserve Report: Reserve Report commissioned by MOPL and prepared by ERCE Limited dated March 15, 2023 with effective date of December 31, 2022 (the "Reserve Report"), which was prepared in accordance with the definitions, standards, and procedures contained in the Canadian National Instrument 51-101 Standards of Disclosure of Oil and Gas Activities. The Reserve Report will be made available on Criterium's SEDAR profile
The Resource Report: Resource Report prepared by Netherland, Sewell & Associates, Inc. dated February 6, 2023 with an effective date of December 31, 2022 (the "Resource Report"), which was prepared in accordance
with the definitions, standards, and procedures contained in the Canadian National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities. The Resource Report is available in the Annual Information Form on | |
Criterium's SEDAR profile. | 2 |
Criterium Energy (CEQ.V)
SE Asia consolidation delivers material accretive growth to shareholders
- SE Asia's rapidly growing populations & economies create energy demand growth1
- Incumbent retrenchment and subsequent underinvestment has led to decreased supply1
- Stable governments support and incentivize domestic oil and gas production
- Lack of competition allows for rapid consolidation in an accretive manner
- Exposure to premium pricing, top-tier netbacks, and long-term gas contracts
- Our team has collectively operated >500 Mboe/d in SE Asia and >1 MMboe/d globally
Executing a consolidation strategy focused on cash flow generation and growth | 3 | |
Tungkal PSC - South Sumatra | 1 Southeast Asia Energy Outlook 2022. Page 8 - 13 | |
Why Southeast Asia?
Supportive governments, underutilized infrastructure, and premium pricing
Supportive Governments | Low-risk value creation | Premium pricing | |||
opportunities | |||||
| Energy security | | Undercapitalized assets | | Brent+ pricing |
| Tax incentives | | Underutilized infrastructure | | Fixed price gas sales >US$6/MMbtu |
Indonesian Gov. Production Targets | Natural gas supply and demand - | Commodity pricing comparison | |||
a story of spare capacity | |||||
Oil (Mbbl/d) | Natural Gas (Bcf/d) | (Bcf/d) | Oil (US$/bbl) | Pipe Gas (US$/MMbtu) | |||||||||
20 | Variable | ||||||||||||
+63% | +107% | Existing Infrastructure | Fixed | ||||||||||
15 | |||||||||||||
5 bcf/d | |||||||||||||
1,000 | 12 | ||||||||||||
81 | 80 | 77 | 7.9 | ||||||||||
612 | 10 | Demand | 60 | 6.0 | |||||||||
6 | |||||||||||||
SE Asia Domestic Supply | |||||||||||||
2.4 | 1.8 | ||||||||||||
2022 | 2030 | 2022 | 2030 | 5 | CEQ | Brent | WTI | WCS | Europe CEQ AECO | HH | |||
2020 | 2025 | 2030 | 2035 | ||||||||||
Target | Target | ||||||||||||
Source: Reuters, Indonesia's 2022 oil lifting miss target, hopes stalled projects resume, January 18, 2023
Wood Mackenzie Energy Transition Service 2021. Asian gas demand | Source: CME, February 29 2024. CEQ represents estimated priced |
includes North Asia, ASEAN, and Southern Asia | realized from CEQ assets in South Sumatra |
4
Executing our strategy
September 2022 | December 2022 | January 2024 | 2024 onwards |
C$5.5 MM | Bulu | Acquire Mont | Accretive |
D'Or | |||
Private | Acquisition & | Petroleum | Mont D'Or |
Placement | Monetization | Ltd. | Development |
Founders round, with over 30% | High margin monetization | Current production 900 bbl/d with 4.7 | Execute well interventions, | |
from management | options available prior to | MMbbl 2P & 6.5 MMboe 2C3 | workovers, and drill identified | |
Executing a SE Asia | significant capital investment1 | Acquired 100% operated interest in | infill wells. | |
aggregation and consolidation | Acquired with private | two onshore PSCs in Indonesia | Monetize >20 bcf of gas | |
strategy | placement proceeds at a 90% | | 15-year record of safe operations. | resource. Adds ~1,000 boe/d by |
discount to market | 20254 | |||
~65 field & support staff | ||||
Resource Report (Q1 2023) | | Immediate cash-flow & low-risk | Material step-out developments | |
confirms 134 Bcf net 2C | can add over 2,000 boe/d5 | |||
resource to Criterium2 | value creation opportunities | Increase recovery factor up to | ||
Current recovery factor is 5%. 3P | ||||
1 Criterium signed a LOI on Dec 14, 2024 to divest the interest in Bulu | 40% through secondary | |||
2 The Resource Report | reserves estimate 15-20%.3 | recovery6 | ||
3 The Reserve Report |
- Management estimate based on development of contingent resources
5 Management estimate based on development of prospective resources
6 Management estimate based on analogous fields in South Sumatra that have produced from the Talang Aker Formation
2024 onwards
Rapid
consolidation
(>25,000
boe/d)
Line of sight to consolidation of over 25,000 boe/d
- Mature pipeline with near- term acquisition opportunities
- Identified assets with value creation opportunities
- Mont D'Or gets us a seat at the table for larger, more material producing assets
5
Criterium Energy's Portfolio
Our Value Propositions | Portfolio at a glance |
Mont D'Or Assets
Production Optimization | Tungkal PSC1 | West Salawati PSC1 | Bulu PSC2 | CEQ Portfolio | |
Innovative & accelerated development | Gross Area (km2) | 2,285 | 970 | 218 | 3,473 |
(565,000 acres) | (240,000 acres) | (54,000 acres) | (859,000 acres) | ||
Unlock material step-out & exploration potential | Current Production (boe/d) | 880 | 20 | - | 900 |
(As of January 31st, 2024) | |||||
2P Reserves (MMboe)1 | 4.6 | 0.1 | - | 4.7 | |
(100% Oil) | |||||
2C Resource (MMboe)1 | 6.5 | Under Evaluation | 22 | 28.5 | |
(134 bcf) | (10% Oil, 90% Gas) | ||||
2U Prospective (MMboe)1 | 27 | 2 | - | 29 | |
(90% Oil, 10% Gas) | |||||
Tungkal PSC
100% Operated - Expires 2042
Bulu PSC | West Salawati PSC | |||
42.5% Non-Operated - Expires 2033 | 100%% Operated - Expires 2033 | |||
Jakarta | $43 MM net cost recovery pool | $26 MM cost recovery pool | ||
(Indonesia Office) | ||||
Indonesia | Mont D'Or Assets | Bulu PSC | 1 The Reserve Report | 6 |
2 The Resource Report |
Post-closing capital structure and use of proceeds
Financing and acquisition closed January 3, 2024
Acquisition and financing summary
- Criterium acquired Mont D'Or Petroleum Limited (Mont D'Or or MOPL) for the assumption of US$25.9 MM of 8.3% debt plus US$0.9 MM in shares
- Closed C$6.7 MM (US$5.0 MM) equity financing to facilitate closing and provide working capital
- Net Debt post-closing equals C$22.1 MM (US$16.4 MM), with line of sight to debt elimination within 3 years
Capital structure | Estimated Use of Proceeds |
C$ millions and millions of shares | |
Criterium | MOPL | Equity | Pro | ||
(TSXV: CEQ) | (Pre-Mont D'Or) | Acquisition | Financing | Forma | |
Shares Issued & Outstanding | 38.4 | 33.1(2)+36.1(3)(4) | 60.9 | 132.4/168.5 | (4) |
Warrants | 27.2 | - | 68.2 | 95.4 | |
Options & RSUs | 4.2 | - | 9.3 | 13.5 | |
Fully Diluted Shares | 69.7 | 69.2 | 138.4 | 277.0 | |
Outstanding | |||||
Debt | - | $40.4 | ($5.4) | $35.0 | (5) |
Cash | $1.8(1) | $9.7 | $1.4 | $12.9 | (6) |
Net Debt (Debt-Cash) | ($1.8) | $30.7 | ($6.8) | $22.1 |
- Workovers on producing wells
- Identified infill wells
- Progress secondary recovery feasibility study
- Progress development of 2C gas resource
2024 capital guidance in progress
- At September 30, 2023
2 | Includes debt converted to equity at closing and payment to MOPL shareholders | |
3 | Assumed F/X of $0.74 CAD/USD | |
4 | 36.1 million (at an assumed market price of $0.11/share to be issued in 2025 to fulfill completion of Summit loan) | |
5 | Reduced to US$25.9MM (C$35.0MM) at closing of the acquisition by US$4.0MM debt repayment in cash at closing and debt-to-equity conversions | 7 |
6 | Includes cash in MOPL and deducting US$4.0MM debt repayment and including adjustments for fees/expenses related to the financing totaling C$1.4MM |
Mont D'Or is unique
Unique factors have created an opportunity to grow significantly and within cash flow with minimal upfront investment
Fields located in well-developed | |
production regions | Experienced operating team |
Favorable reinvestment | |
opportunities | |
Underinvestment has led to | Commercial contracts in place |
spare processing capacity |
Well payback1: 1x in 9-12
months
Production receives premium | |
Drilling from existing well-pads | to Brent |
1 Assumes $80/bbl Brent and type curve from Reserve Report | 8 |
Tungkal PSC - 100% Operated
Value creation through infill development, gas monetization and low-risk step out exploration
Melawen
N Serian
To Duri
Elang EmasNW Cerah
(8 Bcf + 3
MMbbl)
N. MGH
(TBD)
PLT Field
To Singapore
Tungkal value creation strategy
1. Infill drilling, workovers & production optimization in MGH & PLT fields | |
Low-hanging fruit - 15 infill well locations identified1 | |
| Capital efficient. Wells payback in 9-12 months, workovers payback in 3-4 months |
| 3P Reserves (7.6 MMbbl) only represent 15-20% recovery factor2. Secondary recovery |
3 |
MGH Field | |||
10km | S.MGH | Berkas | |
MGH | (7 Bcf) | ||
(17 Bcf + | |||
Serian | Subthrust | ||
6 MMbbl) | |||
15km | TRGP | ||
Macan | 20km | ||
Gedang | |||
(13 Bcf) |
Peninjauan
Luncung
10km
Cerah
(26 Bcf + To Java
7 MMbbl)
could increase to 30-40% with analogues nearby |
2. Monetize gas via existing underutilized infrastructure |
25- 30 Bcf contingent gas resource (N. MGH, S.MGH, Macan Gedang)2 |
Estimated production of 5 - 10 MMcf/d by 2025. FEED studies ongoing4 |
Tie-in to premium domestic markets and/or Singapore. Sold via take or pay contracts |
of US$6 - $7/MMbtu |
3. Low-risk step out development / exploration |
Nearby infrastructure ensures high chance of commercial success |
Mature prospect inventory is fully defined on 2D seismic |
Cerah-1 encountered oil and gas (not tested). studies ongoing |
All volumes are unrisked 2C/2U resources. Berkas gas resource is Managements Estimate.
Tungkal PSC
Prospects/Leads
Processing Plant
Oil Fields | Existing gas pipeline | |
Gas Fields | Potential Gas Pipeline | |
Metering Station | Exploration Wells |
- Infill wells are categorized as follows: 10 are Reserves, 3 are Contingent Resource, 2 are Prospective Resource
2 The Reserve Report
3 | Secondary recovery factors are based on Management estimates from analogous fields | 9 |
4 | Management estimate based on development of Contingent Resource |
West Salawati PSC - 100% Operated
Exploration upside within a proven hydrocarbon basin and utilizing an established oil egress network
5 | 6 | |||
2 | ||||
1 | Balladewa | |||
Cluster | ||||
(2 MMbbl) | ||||
7 | 19 | |||
20 | 11 | E2 | ||
12b | ||||
13 | ||||
10 | 21 | |||
E1 | ||||
9 | ||||
14 | ||||
- 15
(7 MMbbl)
4
3X
(25 MMbbl)
10km
All volumes are unrisked estimated ultimate recovery. Lead 3X and Lead 15 are Managements Estimates.
West Salawati PSC | Prospects/Leads | |
Gas Fields | Oil Fields | |
West Salawati value creation strategy
- Production Optimization
- Only 4% recovered from BLL-A field1. Analogue fields produce up to 15%2
- Workover can potentially revive BLL-A field to economic production levels
- Opportunity exists for sidetrack of current well or infill development
- Step-outdevelopment (Balladewa Cluster)
- Certified prospective resource of 2 MMbbl directly offsetting BLL-A2
- Cost effective tie-ins can utilize spare capacity at existing facilities and egress routes
- Fully defined on 3D seismic
- High impact exploration
- Management has identified an additional 19 prospects/leads from 2D seismic
- Notable prospects include Lead 3X (25 MMbbl) and Lead 15 (7 MMbbl)3
- Prospects outside of the Balladewa Cluster are not included as Prospective Resources in most recent reserve report conducted by previous ownership
Note: We take a disciplined approach to exploration and will aim to maximize our net carried interest in the West Salawati PSC via partnerships and/or farm-ins.
1 The Reserve Repport | 10 |
2 Based on Bagong 1 & Bagong 2 well performance | |
3 MOPL Estimates |
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
Criterium Energy Ltd. published this content on 01 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 March 2024 19:12:04 UTC.