This progress report focuses on the potential for geothermal energy extraction in Malaysia, particularly in the Sabah and Sarawak sedimentary basins. Despite the region's rich deep reservoirs, development in this area has been limited. Our study emphasizes the extraction of geothermal energy from the Sarawak Basin's geothermal reservoirs through CO2 injection. We primarily investigate sandstone formations, analyzing their properties and the feasibility of hot water extraction using CO2. The report provides a theoretical framework to understand the primary recovery mechanisms for fluid extraction from these reservoirs. To simulate geothermal reservoir performance, a commercial reservoir simulator was used. Due to the lack of precise data, our analysis relies on existing literature and estimations, which are substantiated by relevant sources to ensure reliability. We constructed a reservoir model to compare scenarios with and without CO2 injection, demonstrating that CO2 injection significantly enhances energy extraction. Our findings also suggest that sandstone formations can effectively trap CO2, offering a dual benefit of permanent underground storage and improved fluid production from the reservoir. Lastly, the report identifies areas for further improvement in this field.