Criterium Energy Ltd · TSXV:CEQ
Criterium Energy — Investor Presentation (September 2023)
24 slides from Criterium Energy's investor presentation, Sep 5, 2023
Slide 1: Fuelling future prosperity: Energizing growth for SE Asia and shareholders
Fuelling future prosperity: Energizing growth for SE Asia and shareholders Tungkal PSC – South Sumatra
Slide 2: Disclaimers and key terms
Disclaimers and key terms The information in this presentation is provided as of September 5, 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 i
Slide 3: Criterium Energy (CEQ.V)
Criterium Energy (CEQ.V) SE Asia consolidation delivers material accretive growth to shareholders SE Asia’s rapidly growing populations & economies require large new sources of reliable energy1 Underinvestment has led to decreased supply & inability to meet increasing energy demand1 Stable governmen
Slide 4: Why Southeast Asia?
Why Southeast Asia? Supportive governments, premium netbacks, and underutilized infrastructure Supportive Regulatory Low-risk value creation Premium Netbacks Environment opportunities ▪ Energy security has led governments to ▪ Brent + pricing ▪ Undercapitalized assets increase domestic production ta
Slide 5: Executing our Strategy
Executing our Strategy September 2022 December 2022 Present 2023 onwards 2024 onwards Acquire Mont Rapid C$5.5 MM Accretive Bulu D’Or consolidation Private Mont D’Or Acquisition Petroleum (>25,000 Placement Development Ltd. boe/d) ▪ Founders round, with over ▪ Acquired with private ▪ Acquiring M
Slide 6: Mont D'Or Transaction
Mont D’Or Transaction Criterium’s foundational acquisition provides material accretive growth within free cash flow ▪ Criterium is acquiring Mont D’Or Petroleum Limited (Mont D’Or or MOPL) for the assumption of US$25.5MM of 7.95% debt plus US$1MM in shares ▪ Currently produces 1,050 bbl/d with 11.1
Slide 7: Mont D'Or is Unique
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 Cash flow from 1 well unlocks $25 MM of value within 2 years Underinvestment has le
Slide 8: Mont D'Or: Cycling Cash and Creating Value
Mont D’Or: Cycling Cash and Creating Value 24-month value creation profile, self funding reinvestment can grow production and cash flow quickly Putting capital to work to create a cash flow engine Single well economics months Capex: $1.6 MM1 EUR: 260MMbbl3 0 6 12 18 24 Payback: 6 months2 IRR: 152%2
Slide 9: Mont D'Or: Immediate cash flow and low risk growth
Mont D’Or: Immediate cash flow and low risk growth Moving quickly to execute work program and create value Executing quick wins in 2023 & 2024 Forecasted production profile3 3,000 2024 Drilling 2023 2024 Workovers ▪ Execute workovers in MGH, PLT, and BLL-A1 (workover rig 2023 Drilling onsite) 2,500
Slide 10: Balancing Growth and Deleveraging
Balancing Growth and Deleveraging Ensuring debt is managed while capital is deployed CEQ Gross Debt and Leverage1,2 CEQ Annual Payout Ratio1,2 (US$ MM) (@$80/bbl Brent) 25 24 3.5 140% 23 D:CF Capex 22 125 21 MOPL Debt 3.0 120% 20 19 Strategic Investor 18 98 2.5 100% 100% 16 91 15 Gross Debt 15 D:CF
Slide 11: Balancing Growth and Deleveraging
Balancing Growth and Deleveraging Deployment of capital drives real cash flow per share growth, while convert structure protects existing shareholders CEQ Quarterly Cash Flow1,2 Implied Share Price (Current Offering vs Straight Equity)3 (Annualized US$ MM) (@1.5x EV/DACF) Current 40 0.60 July 2023 P
Slide 12: Strategic Rationale and Foundation for Consolidation
Strategic Rationale and Foundation for Consolidation Mont D’Or is the foundation for further growth and CEQ’s target of achieving >25,000 boe/d Illustrative accretive growth trajectory Foundation for consolidation mboe/d ▪ Provides immediate, stable cash flow base from which 30 to grow MOPL Acquisit
Slide 13: Criterium's Portfolio
Criterium’s Portfolio Our Value Propositions Portfolio at a glance Mont D’Or Assets Production Optimization Tungkal PSC1 West Salawati PSC1 Bulu PSC2 CEQ Portfolio 2,285 970 218 3,473 Innovative & accelerated development Gross Area (km2) (565,000 acres) (240,000 acres) (54,000 acres) (859,000 acres)
Slide 14: Financing Led by a Strategic Investor
Financing Led by a Strategic Investor Acquisition expected to provide accretion for CEQ shareholders Financing US$11.2 MM (C$15.3 MM)1 to complete MOPL acquisition and Closing cash balance build-up2 provide working capital for development (US$ MM) Strategic Strategic investment of US$9.1 (C$12.5 MM)
Slide 15: Capital Structure & Use of Proceeds
Capital Structure & Use of Proceeds Capital Structure Estimated Use of Proceeds(5) (in C$ millions and millions of shares) Criterium MOPL Pro Putting Criterium in position to execute our value (TSXV: CEQ) (Current) Acquisition Financing Forma creation strategy in a disciplined manner while creating
Slide 16: Uniquely positioned to support SE Asia energy demand growth
APPENDIX Uniquely positioned to support SE Asia energy demand growth 1 2 3 4 5 Proven team Major & IOC exit Material M&A Value creation SE Asia growth with significant creates our opportunities of rooted in provides operating opportunity to discovered reputation, compelling experience in SE fill the
Slide 17: 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 Northeast Asia and previously Nigeria, Sourced, evaluated, and exec
Slide 18: Criterium Energy's competitive advantage
Criterium Energy’s competitive advantage Our strategic pillars underpin differentiated and scalable value creation Technology Arbitrage Applying proven technologies to undercapitalized assets Successful and sustainable Innovative subsurface approach reputation ▪ Built upon a collective 100 years of
Slide 19: 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
Slide 20: Mont D'Or: Tungkal PSC
Mont D’Or: Tungkal PSC Value creation through infill development, gas monetization and low-risk step out exploration To Duri Tungkal value creation strategy Melawen N Serian 1. Infill drilling, workovers & production optimization in MGH & PLT fields NW Cerah PLT Field ▪ Low-hanging fruit – over 20 i
Slide 21: Mont D'Or: West Salawati PSC
Mont D’Or: West Salawati PSC Exploration upside within a proven hydrocarbon basin and utilizing an established oil egress network West Salawati value creation strategy 6 1. Production Optimization 5 ▪ Only 4% recovered from BLL-A field1. Analogue fields produce up to 15%2 ▪ Workover to be conducted
Slide 22: 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 existin
Slide 23: Accretive shareholder value realized from regional consolidation
Accretive shareholder value realized from regional consolidation Leveraging our competitive advantage to consolidate a diversified portfolio in a discounted market Primary target markets Disciplined approach to consolidation Secondary SE Asia focus ▪ Focus on assets and jurisdictions where there is
Slide 24: www.criteriumenergy.com info@criteriumenergy.com
www.criteriumenergy.com info@criteriumenergy.com +1 (403) 668 1630 Tungkal PSC – South Sumatra 24
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