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Criterium Energy Announces Agreement to Sell Its Interest in the Bulu PSC for C$10.5 Million
Calgary, Alberta--(Newsfile Corp. - December 14, 2023) - Criterium Energy Ltd. (TSXV: CEQ)&...
About this update from Criterium Energy Ltd
[{"type":"text","content":"Criterium Energy Announces Agreement to Sell Its Interest in the Bulu PSC for C$10.5 MillionCalgary, Alberta--(Newsfile Corp. - December 14, 2023) - Criterium Energy Ltd. (TSXV: CEQ) (\"Criterium\" or the \"Company\"), an independent upstream energy development and production company focused in Southeast Asia, is pleased to announce the Company 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 (the \"Transaction\"). Upon signing of Definitive Agreement (\"Definitive Agreement\"), the Company will issue a press release outlining the type of transaction as per TSX Policy 5.2 and any required approvals.TransactionThe 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.About Criterium Energy Ltd.Criterium Energy Ltd. is an upstream energy company focused on the acquisition and sustainable development of assets in Southeast Asia that can deliver scalable growth and cash generation. The Company focuses on maximizing t...