Criterium Energy Ltd · TSXV:CEQ
Criterium Energy — Investor Presentation (June 2023)
36 slides from Criterium Energy's investor presentation, June 2023
Slide 1: Providing reliable and sustainable energy to growing economies
June 2023 Providing reliable and sustainable energy to growing economies Singapore
Slide 2: Disclaimers and key terms
Disclaimers and key terms The information in this presentation is provided as of June 13, 2023 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 impor
Slide 3: Completion of Mont D'Or acquisition will provide a portfolio with immediate cash flow
Completion of Mont D’Or acquisition will provide a portfolio with immediate cash flow and low-risk value creation opportunities ✓ Operator 100% interests in the Tungkal and West Salawati PSCs ✓ Immediate Cash Flow 1,050 bbl/d/ 4.7 MMbbl 2P Reserves/$24 MM 2024 NOI1 ✓ Near-term low risk growth 2x pro
Slide 4: Experienced Leadership Team
Experienced Leadership Team Datuk Brian Anderson Matt Klukas Non-Executive Chairman Safely led multi-disciplinary and multi-national operational E&P teams in Malaysia, COO, P.Geo, MBA Australia, and Nigeria. Former Chairman of Shell North East Asia and previously Nigeria, Sourced, evaluated, and exe
Slide 5: Mont D'Or Corporate Profile
Mont D’Or Corporate Profile Expected to provide material cash flow with short- and long-term upside Value Proposition Tungkal PSC Indonesia West Salawati PSC Indonesia Provides material cash generation from high netback onshore production. Enhanced value generated from infill and step out developmen
Slide 6: Immediate cash flow and low risk growth
Immediate cash flow and low risk growth Moving quickly to execute an enhanced work program on MOPL Executing quick wins in 2023 & 2024 Forecasted production profile4 3,000 2023 2024 Drilling ▪ Execute workovers in MGH, PLT, and BLL-A1 (Workover rig 2024 Workovers available immediately) 2023 Drilling
Slide 7: Mid-term low risk growth - gas monetization
Mid-term low risk growth - gas monetization Discovered and identified gas prospects can be tied into existing infrastructure and sold to market Gas aggregation/development strategy To Duri 1. Include North Mengoepeh (Pad-3) in Contingent Resource (2023) ▪ Flowed gas from 4 MGH wells on Pad-3, curren
Slide 8: High impact exploration upside
High impact exploration upside Established portfolio of material oil and gas prospects/leads that can provide reserve replacement Criterium takes a disciplined approach to exploration and will seek to increase net carried interest on any exploration activity Tungkal West Salawati Melawen N Serian PL
Slide 9: Production growth enhances shareholder value
Production growth enhances shareholder value Value drivers include primary workplans, enhanced workplans, step-out developments, and gas aggregation ▪ Value enhancement activities will be initially focused on the Tungkal PSC where scalable upside is provided from production optimization (increasing
Slide 10: MOPL near and long term reserve drivers
MOPL near and long term reserve drivers Versatile asset with multiple avenues for production and reserve growth Growth drivers within Tungkal (Values in MMboe) MGH PLT Investigating Recovered implementing MGH & PLT waterflood in both = 30% PLT & MGH Prospective In-fill program has the potential to R
Slide 11: Mont D'Or Petroleum Acquisition Summary
Mont D’Or Petroleum Acquisition Summary Tungkal PSC – South Sumatra 11
Slide 12: Acquisition Summary
Acquisition Summary Acquiring producing oil, material reserves and contingent resources on favorable terms MOPL Transaction Summary Criterium Corporate Structure (Post MOPL Closing) Seller Mont D’Or Petroleum Ltd. Shareholders Criterium Energy Ltd. (incl. Provident Capital Partners5) (Canada) 100% 1
Slide 13: Debt restructured
Debt restructured Criterium to acquire MOPL for the assumption of favorable debt from credible lenders Immediate actions to drive debt down and put cash Moving from 3x D/CF today to 1.5x at closing and <1x in to work creating value 2024 $36.8 $4.3 MM write down in exchange for Lenders agreed Provide
Slide 14: Equity financing and anticipated returns
Equity financing and anticipated returns Acquisition expected to provide accretion for CEQ shareholders Fully Diluted Price (@ Select EV/DACF1,2) Criterium will raise US$16 MM (C$22 MM) to $0.89 Equity raise complete MOPL acquisition $0.81 3.0x $7.9 MM paid to MOPL lenders 2.5x $0.54 Use of proceeds
Slide 15: Mont D'Or Acquisition – Key Metrics
Mont D’Or Acquisition – Key Metrics C$0.235 DACF per Enhanced Total Shareholder Value share1 Acquired at a discount to market Competitive operating metrics Material growth realized within cashflow Sizeable reserves (4.7 MMbbl2) Identified workovers and 35% $45/bbl Robust netbacks in >1,700 acquired
Slide 16: Criterium intends to build a regional portfolio to unlock shareholder value
Criterium intends to build a regional portfolio to unlock shareholder value Leveraging our competitive advantage to aggregate a diversified portfolio in a discounted market Disciplined approach to growth ▪ Focus on assets and jurisdictions where there is a clear value proposition ▪ Leverage strong r
Slide 17: Uniquely positioned to support Southeast Asia energy demand growth
Uniquely positioned to support Southeast Asia energy demand growth 1 2 3 4 5 Proven team with Major & IOC exit Material M&A Value creation Southeast Asia significant creates our opportunities of rooted in growth provides operating opportunity to fill discovered reputation, compelling experience in t
Slide 18: Supporting Material: A balanced and scalable portfolio
Supporting Material: A balanced and scalable portfolio Raja Ampat - Indonesia 18
Slide 19: Solidifies Foundational Growth Portfolio
Solidifies Foundational Growth Portfolio Balanced and scalable Criterium Portfolio Profile Criterium Portfolio Production (boe/d)6 ▪ Immediate cash flow generation with significant opportunities to reinvest organically within operated and development assets 12,500 ▪ Provides a long term balance betw
Slide 20: Significant organic value creation opportunities
Significant organic value creation opportunities Portfolio can generate value from near term production optimizations to high impact exploration Production Infill well Step out Gas Secondary Large scale gas High impact Optimization opportunities development aggregation recovery development explorati
Slide 21: Supporting Material: MOPL Transaction and Financing
Supporting Material: MOPL Transaction and Financing Tungkal PSC – South Sumatra 21
Slide 22: Acquisition of Mont D'Or Petroleum expected to generate scalable cash flow
Criterium’s acquisition of Mont D’Or Petroleum is expected to generate scalable cash flow, enhance shareholder value, and create a platform for growth ▪ Acquisition of a proven operating business and team with a strong reputation in Indonesia ▪ 100% Operated working interest in the Tungkal PSC, prod
Slide 23: Summary Term Sheet of Equity Financing
Summary Term Sheet of Equity Financing A preliminary prospectus (the "Prospectus") containing important information relating to the subscription receipts of Criterium Energy Ltd. has been filed with the securities regulatory in each of the provinces of Canada, other than Québec. A copy of the Prospe
Slide 24: Capital Structure & Use of Proceeds
Capital Structure & Use of Proceeds Capital Structure Estimated Use of Proceeds (in C$ millions, at March 31, 2023) CEQ Equity Pro Putting Criterium in a position of strength to execute our TSXV: CEQ Q1 2023 Financing MOPL Forma strategy in a disciplined manner while maintaining resiliency Share Pri
Slide 25: Significant running room to increase recovery
Significant running room to increase recovery Bypassed pay, innovative infill targets, and waterflood provide potential to improve recovery factor up to 30%2 Workovers Infill & Step-out drilling Secondary Recovery Illustrative Mengoepeh Well Log Illustrative Mengoepeh Cross Section Illustrative Pema
Slide 26: Facilities in place for low-cost reserve growth
Facilities in place for low-cost reserve growth Tungkal and West Salawati facilities have ample capacity for additional production Tungkal is underutilized MGH Central Processing Facility PLT-3 Production Facility ▪ MGH CPF is operating at 5% capacity (capacity = 12,000 bfpd1) ▪ PLT facility is oper
Slide 27: Supporting Material: Bulu PSC
Supporting Material: Bulu PSC Bawean Island, Jawa Timur, Indonesia. 90km from Bulu PSC
Slide 28: Bulu PSC Overview
Bulu PSC Overview Fully appraised Lengo gas development in shallow water Gulf of South China Indonesia Thailand Sea Innovative Development Plan Bulu PSC Pacific Celebes Ocean ▪ Offshore modular development concept Sea ▪ Carbon sequestration provides egress optionality ▪ 25km tie-in utilizes existing
Slide 29: Lengo development is in the value creation stage
Lengo development is in the value creation stage The Gas Sales Agreement is a key project milestone which reduces project risk and sets the path for project financing Development Key Milestones Value maintained Value creation Value realization Value sustained through Value increases with minimal cap
Slide 30: Supporting material: Strategy, SE Asia & ESG
Supporting material: Strategy, SE Asia & ESG Indonesia 30
Slide 31: Southeast Asia's Energy Landscape
Southeast Asia’s Energy Landscape Energy demand increasing ▪ Southeast Asia’s populations and economies are rapidly growing, requiring large new sources of reliable energy1 Energy supply ▪ Underinvestment and divestments have led to decreased supply and the inability to meet increasing decreasing en
Slide 32: Why Southeast Asia?
Why Southeast Asia? Favourable environment for deploying capital Supportive Regulatory Low-risk value creation Premium Netbacks Environment opportunities ▪ Energy security has led governments to ▪ Brent pricing and no ‘egress discount’ ▪ Undercapitalized assets increase domestic production targets ▪
Slide 33: We have the team to successfully deliver our strategy
We have the team to successfully deliver our strategy Experienced and enthusiastic experts in upstream production, development, and exploration Our team is our competitive advantage. We are a dedicated and cohesive team consisting of proven international company builders, subsurface experts, M&A pro
Slide 34: Creating a balanced portfolio
Creating a balanced portfolio Incremental acquisitions targeting production and reserve/resource growth creates a scalable and self-funded portfolio Opportunity to fill the gap Portfolio growth principles Southeast Asia Independent Landscape1 (Illustrative) ~20,000 ▪ Executing quick wins increases v
Slide 35: ESG: Leading from the front
ESG: Leading from the front Building and maintaining a strong reputation in all aspects of our business is fundamental for creating value for our shareholders ✓ Providing a safe, inclusive, collaborative, and innovative workplace People First ✓ Ensuring our operations will provide stable employment
Slide 36: How we achieve our results is important
How we achieve our results is important Our approach to sustainability is aligned with the United Nations sustainable development goals and is underpinned by our drive to support growing economies and communities by responsibly producing and developing reliable energy1 Running a responsible and Shar