Legal row looms for Oil Search as rival strikes deal

[ltinvest]

That is a good point Palm. If that means that OSH now owns all of the PAC interests in IOC's PPLs then why would they do anything to slow down future exploration?

Putn and Palm:  This seems to me to be a source of some confusion, because if OSH bought the Pac LNG Group Companies, why would they not now also own their interests in IOC's PRL 39 and PPLs, which apparently  they do not?  Per the OSH news release, "The Company has entered into a separate Heads of Agreement, to potentially acquire an interest in a number of other exploration licences, including the Triceratops gas discovery."  That's in the form of a six-month period of exclusive negotiations, with no prices yet agreed on.

Agree completely Getit; thought about that last night.  Botten stated that he bought entity/entities.  In the original SPA the PAC LNG Interests were defined as:

“PacLNG Interest” means, as at the Effective Date, an aggregate twenty two decimal eight three five percent (22.835%) interest in the PRL 15 Title and the JOA applicable to PRL 15 as at the date of this Agreement, which interest is held by the following entities:

(a)

PAC LNG Investments Limited (2.500%);

(b)

PAC LNG Assets Limited (6.750%);

©

PAC LNG International Limited (5.100%);

(d)

PAC LNG Overseas Limited (5.000%); and

(e)

PAC LNG Holdings Limited (3.485%).

If these entities only owned interests in PRL 15 it makes more sense.  But these interests were likely in the original PPLs out of which PRL 15 was carved.  That's where some of this falls away for me.

Done with this; going to let it unfold because I think IOC has this coverered by how the final deal was structured.

excellent conclusion