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Criterium Energy Provides Operational Update on Workover Program, Highlighted by Increased Production and Reduced Operating Costs
Calgary, Alberta--(Newsfile Corp. - June 25, 2024) - Criterium Energy Ltd. (TSXV: CEQ) ("Criteri...
About this update from Criterium Energy Ltd
[{"type":"text","content":"Criterium Energy Provides Operational Update on Workover Program, Highlighted by Increased Production and Reduced Operating CostsCalgary, Alberta--(Newsfile Corp. - June 25, 2024) - Criterium Energy Ltd. (TSXV: CEQ) (\"Criterium\" or the \"Company\") , an independent upstream energy development and production company focused on energizing growth for Southeast Asia and its shareholders, is pleased to provide an operational update as it relates to optimization activities in the Company's 100% owned and operated Tungkal PSC Indonesia (the \"Tungkal PSC\"). Intervention and Workover Activities Exceed Expectations and Drive Reduced Operating CostsA key focus area for Criterium has been increasing production in the Tungkal PSC through the execution of low-cost well interventions and workovers in the Mengoepeh Field (\"MGH\"). The workovers utilize existing wellbores to target reperforation of the reservoir or seek to perforate bypassed pay zones that have been identified on well-logs. Since commencing the optimization program in March 2024, Criterium has executed a total of six workovers which have added an estimated 180 bbl/d1 of production to date, which represents average incremental volumes of approximately 30 bbl/d per workover, a 50% increase over the initial forecast rate of 20 bbl/d2. These low-cost activities have increased total production to approximately 900 bbl/d1, a more than 12% increase over the Company's Q1/24 average, on spending of only US$359,000. Overall, Criterium's program costs are on budget, producing at an estimated 50% above the projected type curve, and demonstrating the Company can bring on incremental volumes at less than US$2,000 per flowing barrel. The six workovers completed to date will collectively reach pre-tax payout by the end of June. Notable Workover ResultsMGH-16 - Currently producing approximately 80 bbl/d from the previously untested GH sand. Pre-tax payback from this workover was approximately 15 days, and as such, Criterium is assessing additional potential in the GH sand which will be targeted in future workovers.MGH-07 - Gas production has been routed to the MGH Central Processing Facility where it is being used as fuel for power generation, directly reducing diesel consumption and resulting in an annualized operating cost savings of approximately US$250,0001 and reducing emissions associ...