Consider the payments from the InterOil-Total SPA (see attachment)

However, two deductions have to be made:

1. The intial payment ($401M), we already had that
2. The drilling carry ($150M), this will be deducted from the total
3. Ideally, one should also discount future payments, but since most of the payout will be on the certification (next year) this effect is small so I'll leave it out.

If you compare this with the OilSearch CVRs we get, it seems like a no brainer. What we get from the Total SPA is much more at every level of Tcfe count.

However, we also become 21% shareholders in OilSearch, and as such we get 21% of the proceeds from the MoU between OilSearch and Total for the 60% sale of PRL15 and 62% of the other licenses. That is, we get:

1. 21% of $1.2B = $252M
2. 21% of two fixed additional payments ($141.6m on 1 July 2017 and $230m at FID) = $78M

Together this is $330M and this should be added to the different payouts at different Tcfe levels from the interim certification. Properly corrected for all this, we then get (all in US$):

Feel free to correct (I'm not an accountant) add and/or comment.. For instance, I'm not sure the $330M should be added to the CVR. One could argue that there is another side to that, losing another part of PRL15 and the other licenses. If you leave it out the difference becomes considerably bigger.

'Putncalls' pid='70994' datel Wrote:The difference is compensated by OSH blue sky?

Yes, this is only comparing part of the deal of course. We also become 21% (well, actually 14%-21%) shareholders in OilSearch and as such we even still have some stake in our old company:

• 8% (21% of 38%) of InterOil's other licenses
• 21% of 22.853% of PRL15 = 4.8% of PRL15
• 21% of 40% of 36.5% of PRL15 = 3.06% of PRL15

So in total we still own 8% of our other licenses and 7.9% of PRL15

And of course 21% of anything else that OilSearch owns, like 29% of PNG LNG already operating.

'Putncalls' pid='70997' datel Wrote:21% of a bird in hand. The upside isn't as large but neither is the volatility. Losing MH and team is also a plus. Where the heck do these BODs from hell come from BTW?

Where do B'sOD like this come from? See attached.

'cybersssss' pid='71000' datel Wrote:Putz. Apparently not losing Hession. Per reports he will be highly involved in oil search. Some have reported as the CEO. I would not want to be involved in ANY Company that he is even an employee of. Look at his history. Browse LNG and Interoil both have had huuuuuge cost blow outs. One billion dollars lost. Gone. This guy cannot run a company and is hated by anyone other then the buearocrats he throws out hard earned money at.

He is worshipped by his henchmen, and that is not an exageration. Hession has a loyal cadre of people, because he rewards them with bucket loads of company money. Look at the other executive officers and SVP's. These are his "boys" who will follow him to the next gig to displace the incumbents, just as they did at InterOil. For Hession to do what he does best, he needs to be unreachable by any with dessenting views. If Hession goes to Oil Search, then we will see Thomas "Zoltan" Nador, Jon "Can" Ozturgut, and Don "Stutters" Spector following him. Maybe Dave "Captain" Kirk and Saxon "Novice" Palmer will follow later, but they are in the outer ring.