Surprised that many here don't know this

[jft310]

First payment $613 million at deal closing 1st quarter of 2014

Here the tranches in the legal documents for payments based on recertifications estimates

Remember we have 3 reservoir engineers reports in the 9 T area

5.4 Tcfe is a payment of $1.5 billion on top of the closing $

6.5 Tcfe is a payment of $2.1 billion on top of the closing $

9.9 Tcfe is a payment of $4.1 billikn( the GLJ best case) on top of the closing $

11.8 Tcfe is a payment of $ 5.1 billion (GLJ high) on top of the closing $

Amounts above the grid if connected to Antelope paid at $1.29 per Tcfe

Plus IOC gets to keep 30 percent of the finds

Straight from the SPA filed on Sedar

[ebster123]

Correct JFT, but those payments are years out not 2014 or even 2015 as many expected.

[admin]

What do you mean by ["on top of the closing $"]

I ask this because in an SA article, I presented the same table as "variable payments" suggesting they would be added to the fixed payments (a typo since corrected)

Bonk (Keubiko) then took that to argue that I my calculation was off by a factor greater than 2x.

The funny thing is, he didn't even look at the calculation I made, because if he did, he would have noticed that in the calculation itself I treat the $4.1B (for the GLJ best case) as TOTAL payments, not just variable ones (I explained that to him a zillion times, but he refused to budge on the issue, for reasons only known to him).

But now you seem to suggest they're not total payments after all..

I think they are though, unless proven otherwise.

[jft310]

Eb

Not true sir

first payment is within 90 days $613 million

certification the first one with the above payments in 24 months or less per Hession on the call this is 2013 so in 2015 we get

paid again

after that we have a second certification with more payments

You are very smart and your post shows the problem ,

and that's why I posted the details so all can get on the same page

[admin]

Correct JFT, but those payments are years out not 2014 or even 2015 as many expected.

The $613M is upon deal closing, supposedly Q1 next year. But also note this from the PR:

In addition to these fixed amounts, variable payments for amounts in excess of 3.5 Tcfe for the gas resource will depend on certification by two independent certifiers following up to three appraisal wells to be drilled in PRL15. The gas resource payment for amounts greater than 5.4 Tcfe will be paid at certification.

Meaning if we end up with GLJs P50 (9.9Tcfe), the biggest part of the variable payments by far arrive at certification, supposedly 2015.

[ebster123]

JFT, I am well aware of the $613,000,000, I am speaking about the "big" money. Many were expecting sooner money from
1. A sell down and rapid minimization in PNGLNG
2. "Condensates" that your were very quick to say would be very soon from the CSP
3. JFT, you "not true sir" comment comes across more than a bit a snippy, arrogant and condescending. I for one would appreciate balanced info in a collegial way. If you meant no slant to your post I apologize. It is just that these comments have in the past (and currently) come across very negatively in this manner. T

[Petro2458]

So if 9.9 tcfe, it looks like this??

Year Fixed Variable Total
2014 $0.613 -- $0.613
2015 -- $4.1 $4.1
2016 $.112 -- $.112
2017 - 19 --- --- ---
2020 $0.1 -- $0.1
Subtotal $0.825 $4.1 $4.925

[admin]

So if 9.9 tcfe, it looks like this?? Year Fixed Variable Total 2014 $0.613 -- $0.613 2015 -- $4.1 $4.1 2016 $.112 -- $.112 2017 - 19 --- --- --- 2020 $0.1 -- $0.1 Subtotal $0.825 $4.1 $4.925

I think the $4.1B are indicative total payments if the certification confirms GLJ's P50, and I treated it as such in the simple calculation I made in a SA article, despite a typo in the text).

[Libtardius Maximus]

And this is exactly the problem and the result of a botched rollout. Since SHU is has many shareholders what would have to happen for Hession to make a one time guest appearance and post what terms and timelines are to eliminate the confusion. Or maybe Byker.

I think we have earned it.

[Petro2458]

Ok..this is key: can someone confirm?