Valuation work from IV P3CMS

[jft310]

The Japanese must also build an LNG plant and give IOC 30 percent of the plant for a payment and agree to explore the other prospects to compete with Total . Not likely Total is knocked out could be bought out maybe.

[Relker]

Assumptions

Date of Amalysis - Used for Discounting 1-1-2014
Reserve (best case incl liquids) 9,9 Tcfe
Discount Rate 10%

Ownership/Shares Outstanding

Gross working interest Post Net
Pre-transation Transaction Working Interest

Interoil 75,6% 38,7% 30,0%
Total SA 0,0% 61,3% 47,5%
Indirect Participation Interests 24,4% 0,0% 22,5%
Total 100,0% 100,0% 100,0%

Working interest IOC after state participation 60,5%
IOC Shares Outstanding (millions) incase IPI gets compensated in shares on a proportional basis
48,8 64,6 64,6

Purchase Price
(In Millions of Dollars)

Nominal Dollars Date Paid Present Value

Completion Payment 613,0 31-3-2014 598,9

FID Payment 112,0 30-6-2014 106,9

First LNG Cargo 100,0 30-6-2019 59,2

Interim Resource Payment
$0.60/mcfe between 3.5 Tcfe and 5.4 Tcfe 698,7
$0.80/mcfe between 5.4 Tcfe and 6.5 Tcfe 539,4
$1.00/mcfe greater than 6.5 Tcfe 2.083,9
Total Interim Resource Payment 3.321,9 31-12-2015 2.746,1

Final Resource Payment (True-up if needed) - -

Discovery Bonus (Only if found) - -

Total Purchase Price 4.146,9 3.511,1

NAV-value stake sold to Total as per 1-1-2014 64,2 54,37
NAV-value IOC stake as per 1-1-2014 based on Total taxation 55,34

Asset value IOC stake in PRL 15 before transaction 109,7

[jft310]

Relker where's your LNG work?

its at least $1.5 billion in cash flow to IOC for 25 years, each year

please include the most important work the LNG plant with 30 percent interest

[Relker]

Relker where's your LNG work?

its at least $1.5 billion in cash flow to IOC for 25 years, each year

please include the most important work the LNG plant with 30 percent interest

My take is that there is not a decision taken on a LNG plant. So, I calculated as if we sold the complete stake to Total. I agree with you that there is a lot of upside.