Investor Presentaiton
(1)
(2)
MIE Holdings Corporation Strong cash flow supported by PSC structure
Production
Jilin assets oil allocation under PSCS
1H2013
1H2014
Net: Gross
47% (2)
51% (2)
VAT
5% of the total gross production
Royalty
Calculated at progressive ad valorem rates, ranging from zero to 12.5% based on the
annual production of individual project
Operating Cost Recovery
Oil
Operating costs borne by foreign contractors (1) (i.e. MIE) in the range of 48% to 80%
Pilot-test and
Development Cost
Recovery Oil
Profit-Sharing Oil
80% of production allocated to foreign contractors (1) (i.e. MIE) for the recovery of pilot-test
and development costs, until ALL pilot-test and development costs incurred are recovered
Remaining oil production allocated 48% to foreign contractors (1) (i.e. MIE)
Oil produced is fully allocated to foreign contractors (1) (i.e. MIE) to recover ALL Opex and Capex,
after which it is allocated 48% of oil production as profit-sharing oil
Foreign contractors include MIE (90%) and GOC (10%)
Net: Gross ratio calculated based on production volume
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