Examples of IPI Agreement in a sentence
InterOil has made cash calls for the completion, appraisal and development programs performed on the exploration or development wells that form part of the IPI Agreement.
Under the earlier model, all costs relating to the eight well exploration program (covered by the IPI Agreement) was directly offset against the IPI liability and not capitalized to ‘Oil and gas properties’ or expensed in InterOil’s Statement of income.
Management would like to emphasize that the changes to the accounting treatment resulting from the adoption of the revised model for the recording of the IPI Agreement will not affect the cash position of the company.
During December 2009, the Company bought a further combined 0.5% interest in the IPI Agreement from two investors for $6,500,546 which was settled in two tranches of InterOil common shares.
Under the IPI Agreement, when an investor is registered on a PRL, they forfeit their right to convert their IPI percentage into common shares.
Under the IPI Agreement terms, the funds paid towards IPI would be used for exploration program involving maximum of 16 wells.
As a result, the full amount of the costs relating to the IPI Agreement will be netted off against the liability.
In the instance that InterOil proposes appraisal or completion of an exploration or development well, the investors will be asked to contribute to the completion work in proportion to their IPI percentage and InterOil will bear the remaining cost.InterOil has made cash calls for the completion, appraisal and development programs performed on the exploration or development wells that form part of the IPI Agreement.
In accordance with IPI Agreement, InterOil has made cash calls for the extended well programs performed on the exploratory wells that form part of the IPI Agreement.
In the superseded financial statements, the conversion option feature in the IPI Agreement was valued and bifurcated using relative fair value approach based on CICA 3861 – ‘Financial Instruments Disclosure and Presentation’.