Criterium Energy has received a US$500,000 non-refundable payment from the buyer of its wholly owned subsidiary which owns a 42.5% non-operated working interest in the Bulu Production Sharing Contract, offshore East Java.

Details of the Additional Bulu Payment

Inclusive of this US$500,000 non-refundable payment, to date Criterium has received US$1,000,000 of the US$7,750,000 total purchase price consideration for the Transaction, as outlined in the sale and purchase agreement dated May 20, 2024 between the Buyer and Criterium (the “SPA”).

Criterium firmly believes closing the Transaction represents the optimal approach to value creation for shareholders in the near-term. Pursuant to the SPA, Criterium has extended the completion date for the Transaction and expects closing to occur in early Q4 2024. Closing of the Transaction continues to be contingent upon the Buyer's ability to secure the necessary financing.

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. Following the successful appraisal program an independent report was issued in accordance with the Petroleum Resources Management System.

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