Update of status

[2126]

As a newbie, I'd like to thank all of the SHU posters for all of the great information, knowledge, and wisdom that they have shared. I'd also like to make sure I'm on the same page as far as IOC is concerned. Here is my recap of the current status. Please correct me if I have misinterpreted any of this information:

IOC completely changed its management team in the past year and has added Dr. Mike Hession as CEO, Don Spector as CFO, and John Ozturgut as COO, all from Woodside; as well as Dave Kirk as EVP Upstream  and Mike Lynn as EVP Investor Relations (both also former Woodside management).[over past 12 months]

IOC has agreed to sell its downstream and refinery to Puma Energy Group Pte of Singapore for $525.6 million.[6/30/14]

IOC obtained a $300 million credit facility from 10 major international banks.[6/17/14]

IOC is defending its SPA agreement with Total against a challenge/claim by OSH that it had an existing option for PRL 15 buy-in. Arbitration period should be ending in September 2014. [3/28/14]

IOC obtained an additional 1.0536% participating interest in PRL 15 from minority interest owners.[3/26/14]

IOC entered into SPA Agreement with Total for 40.1% of PRL 15 and IOC retains a 36.5% stake in PRL 15 (before Govt. back-in) and received $401 million payment from Total for completion of SPA agreement.[3/26/14]

IOC currently has 3 wells drilling: Wahoo in PPL 474 (spudded 3/8/14), Raptor in PPL 475 (spudded 3/28/14) and Bobcat in PPL 476 (spudded 3/5/14). All three wells are encountering issues with the Orubadi seal stickiness and are behind original schedule.

Oil Search acquired 22.8% of PRL 15 with payment of $900 million to independent interest holder Pacific LNG. [2/27/14]

Ongoing: IOC will drill Antelope 4 & 5 appraisal wells (carried 100% by Total up to $50 million per well) to determine extent of E/A field in 3Q2014. IOC may also drill 3rd additional appraisal well (Antelope 6--also a 100% carry from Total) if it chooses, probably in Q42014 or Q12015. Additionally, IOC has right to request 2nd certification of PRL15 after production begins to cover any additional gas that is found post-1st Certification.

IOC will possibly drill Antelope Deep-1 well in 1Q2015 (100% carry from Total up to $60 million).

IOC will drill Triceratops 3 appraisal well in PRL39 in 4Q2014.

IOC will receive payment of $73.3 million at FID by Total (approx. 2016).

IOC will receive payment of $65.4 million at first cargo from LNG plant (approx. 2020).

IOC will receive payment of up to $3.4 billion at certification (approx. 2016) on sliding scale based on average of Total and IOC certifications with no actual cap on total payment amount.

Thanks.

[Putncalls]

I think they get 500 million for FID and 700 to 1,800 million after certification. Unless A/E has more than 10 Ts or A deep is "connected".

[2126]

I think they get 500 million for FID and 700 to 1,800 million after certification. Unless A/E has more than 10 Ts or A deep is "connected".

I got the $73.3 million from the 3/26/14 Elk-Antelope Presentation PDF, page 7, under Fixed Payments "US$73.3 million at final investment decision for LNG project". Has this changed?

I stand corrected on the Certification payment.

Thanks.

[Putncalls]

I get 500 million for FID from the bar chart on page 11 of the AGM presentation.
https://www.dropbox.com/s/n00tf2wgrxzlzo...L-PACK.pdf

[2126]

I get 500 million for FID from the bar chart on page 11 of the AGM presentation. https://www.dropbox.com/s/n00tf2wgrxzlzo...L-PACK.pdf

[2126]

OK, thanks very much. That chart is where I got the total payment of $3.4 billion (should be $3.5 B), but it is an aggregate of all payments and certification at the very high end GLJ high case. All clear now, thanks, Put.

[petrengr1]

OK, thanks very much. That chart is where I got the total payment of $3.4 billion (should be $3.5 B), but it is an aggregate of all payments and certification at the very high end GLJ high case. All clear now, thanks, Put.

2126 - Congratulations on writing your first message and giving a very good status report. I have not checked all of your numbers in detail but the best place to get some of these numbers is the Revised SPA between the parties that was signed on March 26, 2014. You can read it on Sedar at http://sedar.com/DisplayCompanyDocuments.do?lang=EN&issuerNo=00008794 and click on Security holders documents - English dated March 25, 2014.

I will offer one small correction. Total will only carry 75% of IOC's cost for the first $50 million on each of the appraisal wells and 75% of the first $60 million of the one Exploration well. If the costs exceed those amounts the participating parties will all be responsible for their pro rata share of the cost.

[petrengr1]

OK, thanks very much. That chart is where I got the total payment of $3.4 billion (should be $3.5 B), but it is an aggregate of all payments and certification at the very high end GLJ high case. All clear now, thanks, Put.

2126 - Congratulations on writing your first message and giving a very good status report. I have not checked all of your numbers in detail but the best place to get some of these numbers is the Revised SPA between the parties that was signed on March 26, 2014. You can read it on Sedar at http://sedar.com/DisplayCompanyDocuments.do?lang=EN&issuerNo=00008794 and click on Security holders documents - English dated March 25, 2014.

I will offer one small correction. Total will only carry 75% of IOC's cost for the first $50 million on each of the appraisal wells and 75% of the first $60 million of the one Exploration well. If the costs exceed those amounts the participating parties will all be responsible for their pro rata share of the cost.

Further to the above, the drilling costs carried for IOC by Total will be recovered in part in the future by deducting a portion of those costs from future payments to be made by Total to IOC. So, eventually IOC will pay some of the drilling costs being carried by Total. This is described in clause 3.4 (d) of the revised SPA.

[admin]

Welcome aboard, 2126

[jft310]

Thanks for taking the time