CALGARY (Yosefardi) – Fulucai Productions Ltd. has entered into a binding Memorandum of Understanding (MOU) with Blue Sky Langsa Ltd. (BSL) to acquire a 15% working interest in certain oil and gas interests offshore North Sumatra, Indonesia (Properties).
The asset, Langsa Offshore Technical Assistance Contract, is a 77 square kilometer offshore concession in 325 feet of water depth, 55 kilometers from the shoreline.
The block has 2 discovered fields and 7 wells with historic sunk costs of approximately $61.2 Million US. Mobil Oil initially made the discovery in 1980.
Under the terms of the agreement, Fulucai will acquire a 15% working interest in the Langsa TAC for $918,568 US consisting of cash at closing and payment for 15% of the direct costs for the 2014 work program (WP2014) which are currently estimated to be approximately $8.877 Million US.
Fulucai’s 15% interest of the direct costs will be approximately $1,331,550 US. The Effective Date for the transaction is January 1, 2014. This is a related party transaction. The controlling shareholder of Fulucai is the President of Blue Sky Langsa.