How the PRL 15 Ownership Percentages Work

[efi426hemi]

My friends,

I posted this in another thread but then realized that it probably deserves it's own limelight.  To understand ownership percentages we need to look at this in 3 stages:

Stage 1 - IOC PRL 15 Sale to Total

• IOC is selling 61.3% of the resource to Total.
• IOC and IPI investors then own 38.7%
  
  • IOC buys out the IPI investors presumably for shares - this may be before or after the deal closes.
• This equals 100% of PRL 15

Stage 2 - Total brings in a new partner

• Total owns 42%
  
  • 61.3% - 19.3%
• New Partner owns 19.3%
• IOC owns 38.7%

This equals 100% of PRL 15

Stage 3 - Government comes in with their 22.5%

• Total owns 32.55
  
  • 42% - 22.5%
• New Partner owns 14.9575
  
  • 19.3% - 22.5%
• IOC owns 29.9925
  
  • 38.7% - 22.5%
• Government owns 22.5%

This equals 100% of PRL 15. I must also add the stock is an absolute screaming buy right now.

H&H,

Hemi

[jft310]

The Fat Lady will Sing Soooooooon

[streamingeagle88]

Not sure that I'm fully prepared for another bout with soon.

[Palm]

Thanks for that Hefi. This is important to keep in front of us while this progresses.

[efi426hemi]

The ownership percentages have been run by a member of the executive team and have been 100% confirmed.  The two comments were:

• Stage 3 would be rounded numbers - 32.5%, 15%, 30%, 22.5%
• This is a possible outcome

My speculation:

• I take this to mean that the executive will not commit to these outcomes until, at a minimum, SPA's are signed for the new partner and government.
  
  • I wouldn't be surprised if the new partner is Oil Search.  They may have added a clause to their farm in agreement with Total that they get first right of refusal on any deal that Total signs on PNG.
• This may also mean that Total may allow IOC to come onboard as a partner in the license just north of PPL 237 where Tri extends into and is shared by TOT and OSH

Health and Happiness,

Hemi

[Palm]

Thanks for that Hefi. Great confirm and interesting thought on OSH. Question would be them raising capital for another LT project. However the clause says "up to" 19.3%.

[Putncalls]

So how much doea the government have to pay to get their paws on the 22.5%?

[jft310]

These percentages change with OSH buy out. They must be working the new math now.

[jft310]

Heres a stab at it
Total 30.4%
OSH 17.7%
Govt 22.5
IOC 30%
IOC will be selling less gas percentage to Total. But that same money would never have that's NEVER been kept by Interoil anyway. Would have to been paid to the minority. The net to Interoil should be about the same.