Criterium Energy Ltd. announced that an independent assessment of the Company's Contingent Resources in the Lengo gas field located in the Bulu Production Sharing Contract area in Indonesia has been completed by Netherland, Sewell & Associates Inc. The Resource Report is one of many key activities that Criterium has advanced since acquiring AWE(Asia) Ltd. and a 42.5% participating interest in the Bulu PSC in December 2022. These activities have confirmed the Lengo gas field is a large-scale gas resource with strong development potential. The independent assessment of Criterium's Contingent Resources in the Bulu PSC has been completed by NSAI in accordance with Canadian National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities with an effective date of December 31, 2022. Lengo Gas Development: Project Description: The Bulu PSC is located 65 km offshore of East Java in water depths of approximately 50 m. The Bulu PSC contains the Lengo gas field which was discovered in 2008 by the Lengo-1 well which flow tested 12.9 MMscf/d and appraised in 2013 by the Lengo-2 well which flow tested 20.6 MMscf/d. The drilling results identified a gas-water contact consistent with indicators on 3D seismic and a high-quality carbonate reservoir with an average porosity of 26%.

The reservoir is a mid to lower Miocene carbonate build-up at a depth of approximately 700 meters and consists of an upper red algal zone and lower reefal zone that are in pressure communication. It is not uncommon for these carbonate reservoirs to produce above the 2C resource estimate. The Plan of Development was approved in 2014 and consists of an initial 4 well development with a pipeline delivering produced gas to the Tuban area in East Java.

The Lengo gas contains impurities, including 12.4% CO2 which is common in many Indonesian basins. The CO2 will be removed to meet pipeline specifications and Criterium is exploring potential carbon sequestration options to mitigate environmental impacts. Criterium recently met with key project stakeholders who emphasized their desire for a quick and efficient development of the Lengo gas field.

Criterium and its JV partners, are reviewing select elements of the approved plan of development to meet stakeholder requirements and optimize capital costs. As the development plan is refined Criterium will establish an updated economic case, expected in Second Quarter 2023, when the Contingent Resources are anticipated to be upgraded from 'Development on Hold' to 'Development Pending'. In August 2022, the Bulu PSC partners reached a key project milestone in signing the HOA with an industrial end-user in East Java.

The gas is intended to supply growing industrial demand and feed current infrastructure and/or upgrades to existing facilities. Gas prices reflect the increased demand and dwindling supply and are anticipated to be in the range of $6.5 - $7.5/MMbtu on a long term take or pay contract. Criterium anticipates that the Bulu PSC partners will sign a binding GSA in Fourth Quarter 2023.

Operations Update: In addition to developing the Lengo gas field, Criterium is active in numerous M&A processes and expects to be able to continue its growth trajectory in 2023. The priority will be to complement the Lengo development with cash-flowing producing assets where Criterium plans to create near term value.