July 28 meeting location

[Stavros]

Agree except IMO A7 will be drilled as stated as it will further define the reservoir, but likely not add much to the Certification amount. In the original IOC CVR presentation on May 20 it stated that A7 drilling was still subject to JV partner approval. In the May 30 Roadshow that was changed/updated to read "Drilling of Antelope-7 has now been agreed by PRL 15 joint venture participants". Likely they heard from enough people that it must be drilled and included in the CVR valuation. My guess is once a deal is approved, A7 will be drilled. If deal rejected, A7 will be delayed until IOC is no longer an independent company.

If the Deal is accepted by IOC Shareholders (Retail and Institutions) "as the deal stands" there is no legal requirement for OSH/TOT (the remaining JV Partners) to spud A-7 BEFORE the Certification and CVR Payment is made. They could care less whether people complain or even file law suits because, as the Japanese say "CONTRACT IS CONTRACT."

After the CVR is paid, they would drill A-7 to define the reservoir.

That's why the CVR Agreement MUST be structured to include a GUARANTEE that A-7 will be spud and completed prior to Certification and CVR Payment.

Suppose OSH and TOT say "Don't worry, we must drill A-7 and include it in the CVR Payment because we must define the Western extent of the E/A reservoir."

MY ANSWER, as a negotiator, would be "If you are so adamant that you will definitely drill A-7 to completion before Certification, then you have no problem whatsoever in stating that as a Guarantee in the CVR Agreement. If you refuse to include it in the CVR Agreement, then I know your are not being truthful."

[ArtM72]

From the very beginning of the Transformational Deal, TOTAL has done everything possible to delay the Certification timing.

Awe, c'mon now.  You must be jiving now. Total didn't screw up drilling those wells.  Hession did.  Total didn't leave IOC open to the arbitration.  Hession did.  Total didn't push for A7, Hession did.

So where are Total's footprints? or fingerprints for that matter?  The best evidence for a Total delay is conspiracy theory.  The next best evidence is what you suggest, Hession's (alleged) fear of a low certification number. If there were any concern about low Ts in Elk/Antelope then Total would have drilled Antelope South to assure at least a two train plant. But they understood all the gas necessary for 2 trains was there and more gas wasn't necessary for the time being.  They had all they wanted.

And Hession for whatever reason agreed but worked to delay the certification anyway.