Breakdown of the Total selldown payments

[efi426hemi]

Hello everyone,

I have noted some confusion regarding how the payments are broken down and when they are made.  I felt this needed to have its own thread even though I have posted in a few other places. Please see the below graph for how this is exactly handled.

H&H,

Hemi

[efi426hemi]

The above table also needs to be updated with (however I don't have the time):

• 2014 3rd quarter - Fixed Payment - 40 million for drilling first Appraisal Well in E/A
• 2015 - Fixed Payment - 80 million for drilling 2 Appraisal Wells in E/A
• 2015 - Fixed Payment - 50 million for drilling discovery bonus well
• 2016/2017?? - 100 Million for every Tcf found in discovery bonus well greater than 1 Tcf

Health & Happiness,

Hemi

[Crippsfl]

The above table also needs to be updated with (however I don't have the time):

• 2014 3rd quarter - Fixed Payment - 40 million for drilling first Appraisal Well in E/A
• 2015 - Fixed Payment - 80 million for drilling 2 Appraisal Wells in E/A
• 2015 - Fixed Payment - 50 million for drilling discovery bonus well
• 2016/2017?? - 100 Million for every Tcf found in discovery bonus well greater than 1 Tcf

Health & Happiness,

Hemi

Correct me if I am wrong but aren't the 3 appraisal well offset against the first resouce payment?

[efi426hemi]

Correct me if I am wrong but aren't the 3 appraisal well offset against the first resouce payment?

Hi Cripps,

IOC will be drilling the 3 appraisal wells and will be compensated up to 40 million for each well.  If the drilling goes over this amount then the costs are shared based upon the ownership % in PRL 15 (same for the discovery bonus well - except the limit is 50 million).   These payments are in addition to all the payments listed in the above table.

H&H,

Hemi

[ebster123]

Thanks Hemi

[Getitrt2]

Hemi, minor item, but per the PR the final fixed payment is $100 million rather than $110 million.

Great table.

[jft310]

I was wrong about the $613 being seperate from the payments they are included

[Crippsfl]

Correct me if I am wrong but aren't the 3 appraisal well offset against the first resouce payment?

Hi Cripps,

IOC will be drilling the 3 appraisal wells and will be compensated up to 40 million for each well.  If the drilling goes over this amount then the costs are shared based upon the ownership % in PRL 15 (same for the discovery bonus well - except the limit is 50 million).   These payments are in addition to all the payments listed in the above table.

H&H,

Hemi

Thanks Hemi for theclear and concise table.  It really puts the deal in focus

[Palm]

Thanks for this Hefi. I'm working on a chart that shows some of the same info but adds so that it really lays out deal from a SPA perspective and includes all of the tiers for the Interim amounts. Shorts only want to use the 5.4TCFE because of Total's PR. That's wrong. It should include at least the 3 tiers from the SPA which go to 7.1 TCFE. I also believe IOC's presentation short changes things. It appears in the top 2 tiers showing the GLJ numbers they accidentally show them at .80 and 1.00.

I'm also adding some Bonus Discovery amounts to show possibilities and why Hession is excited about that potential. After all, that's where the gold is.

[efi426hemi]

Thanks for this Hefi. I'm working on a chart that shows some of the same info but adds so that it really lays out deal from a SPA perspective and includes all of the tiers for the Interim amounts. Shorts only want to use the 5.4TCFE because of Total's PR. That's wrong. It should include at least the 3 tiers from the SPA which go to 7.1 TCFE. I also believe IOC's presentation short changes things. It appears in the top 2 tiers showing the GLJ numbers they accidentally show them at .80 and 1.00. I'm also adding some Bonus Discovery amounts to show possibilities and why Hession is excited about that potential. After all, that's where the gold is.

Thanx for that Ducksui, let me know if you need any help getting the table visual onto SHU.

Getit - you are  correct the "First LNG Cargo" column should be 100 million NOT 110 million.

Health & Happiness,

Hemi