Section 3.6- Final Resource Certification (And Payment)

[Thylacine-2]

Cripps, That is almost correct. Note Seller is the one who calls the time of Final Certification and they can call for it at ANY time after first cargo but NO LATER THAN the 25% of production. One would almost have to assume that IOC would call for it just after first cargo. If they waited until the 25% it would be because waiting that long provides for material upside from first cargo, and they have substantial cash already in hand. And it's not for any excess above what's been produced; its for: "The Final Resource Payment shall be calculated in accordance with the following formula: (a) if the volume of PRL 15 2P Resource plus the volume of Hydrocarbon Gas or Condensate produced from the PRL 15 Fields prior to the date of the Final Resource Certification is less than 3.5 Tcfe, a nil amount; or (b) if the volume of PRL 15 2P Resource plus the volume of Hydrocarbon Gas or Condensate produced from the PRL 15 Fields prior to the date of the Final Resource Certification is equal to or exceeds 3.5 Tcfe but is less than 5.4 Tcfe, an amount of 0.60 US$ for each such mcfe in excess of 3.5 Tcfe to a maximum of 5.4 Tcfe, multiplied by the Assigned Interest; or © if the volume of PRL 15 2P Resource plus the volume of Hydrocarbon Gas or Condensate produced from the PRL 15 Fields prior to the date of the Final Resource Certification is equal to or exceeds 5.4 Tcfe but is less than 6.5 Tcfe: (i) the amount calculated in paragraph (b) above using 5.4 Tcfe; plus (ii) an amount of 0.80 US$ for each such mcfe in excess of 5.4 Tcfe to a maximum of 6.5 Tcfe, multiplied by the Assigned Interest; or (d) if the volume of PRL 15 2P Resource plus the volume of Hydrocarbon Gas or Condensate produced from the PRL 15 Fields prior to the date of the Final Resource Certification exceeds 6.5 Tcfe: (i) the amount calculated in paragraph © above using 6.5 Tcfe; plus (ii) an amount of 1.00 US$ for each mcfe in excess of 6.5 Tcfe, multiplied by the Assigned Interest" Again, it provides for far more cash than shorts and even some here before now likely felt IOC could get EVER. Compare this to any resource payment OSH received from Exxon for PNG LNG. Anyone know how much OSH received for resource I. That project?

Palm, as I read it, the agreement provides a payment for any increase in the Final Resource Certification of the PRL Fields (Elk and Antelope)  from the Interim Resource Certification.  How can you be sure that is such a large amount of cash?