Criterium Energy has signed a Letter Of Intent ("LOI") for the arm's length sale of its wholly owned subsidiary which holds a 42.5% non-operated working interest in the Bulu PSC. 

Transaction

The LOI sets forth the terms and conditions of the Transaction which will have an effective date of July 1, 2023. The total cash consideration for the Transaction will be US$7,750,000 (equivalent to approximately C$10,516,000), with US$2,000,000 (C$2,714,000) received as a non-refundable deposit upon signing of the Definitive Agreement and the remaining US$5,750,000 (C$7,802,000) due upon closing which is expected in Q1 2024. There are no finder's fees payable under the Transaction.

Robin Auld, Chief Executive Officer of Criterium Energy:
"The sale of our interest in Bulu represents a significant milestone for our company as a source of non-dilutive funding that strengthens our financial position and provides greater financial flexibility. The Transaction allows us to refocus capital on shorter cycle return initiatives, such as those available to us in the Mont D'Or portfolio. Criterium purchased Bulu one year ago and we have worked with JV Partners to define a development plan that is mutually beneficial for all parties and the value our team brought to this process is recognized in the sale announced today."

The Transaction is categorized as an Indirect Change of Control and is not subject to Criterium receiving any approvals at this time and all notifications required under New Zealand and Indonesian regulations will be provided during the closing period.

The Bulu PSC and Lengo Gas Field

The Bulu PSC is located 65 km offshore East Java in water depths of approximately 50m. 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/d5. The drilling results confirmed the top Kujung carbonate reservoir at approximately 700 m TVDSS with a gross gas column of approximately 70 m, consistent with indicators on 3D seismic. The reservoir is a high-quality carbonate reservoir with an average porosity of 26%6.

The Kujung 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.

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