Crimson Resource Management – Carbon Capture

California is at the beginning stage of an ambitious program to become carbon-neutral by 2045. In order to play our integral part in accomplishing this ambitious goal, Crimson Resource Management is embarking on a feasibility study for potential subsurface reservoirs to sequester the CO2 that we produce in our thermal operations in California. Should this endeavor be successful we will ultimately eliminate 1.2 million metric tons of CO2 per year.

The process for developing a Carbon Sequestration project begins with determining areas that are geologically suitable that includes porous and permeable strata, seals, and depth sufficient for critical state carbon dioxide injection. Crimson is currently evaluating the geologic settings in the vicinity of its producing properties for the appropriate reservoirs. We anticipate this feasibility stage to last through the 1^st quarter of 2021. Simultaneously, we are also evaluating the off-the-shelf technology to capture the carbon dioxide that is produced in our operations that we ultimately would compress and inject into the subsurface for sequestration.

Crimson will continually update its progress on this very important project.

Lost Hills Carbon Capture Project

• In February 2022, Crimson executed an Emissions Option Agreement, providing a leading California carbon capture, utilization and storage (CCUS) company with an option to capture and store emissions from Crimson’s Lost Hills oil field