EFTA00755213.pdf

From: David Stern To: Jeffrey Epstein <jeevacation®gmail.com> Subject: Fwd: Pacific Drilling / CNOOC Date: Sat, 02 Oct 2010 08:33:32 +0000 Attachments: Pacific Drilling_Presentation_September 2010.pdf Deal from Idan Ofer. He is interested in a Chinese partner in his venture: a ultra-deepwater, drillship operator (see attachement) Good or shitty ? Should I take it to Chinese ? Begin forwarded message: From: "C ril Ducau" > To: > Cc: "Ron Moskovitz" >, "Aviad Kaufman" <aviadka@quantum- > Subject: Pacific Drilling / CNOOC David, as per our email exchanges earlier this week and further internal discussion, please find below a high level outline of the proposal/structure that could be presented to CNOOC. We would encourage them to start a mutual discussion on this topic. As a general statement, our intention is not to sell-down our position in Pacific Drilling but we are happy to consider financial and/or commercial partners in order to increase the prospects and the growth profile of the company. For the purpose of your meeting and with the objective to potentially start the ball rolling, please find below 2 structures we would be happy to explore further: (i) Direct investment from CNOOC or subsidirary in Pacific Drilling for a minority stake in the company. For a $300 to 400m investment, they would own 20 to 25% of the company and would have customary shareholder protection and governance rights. We invested $1.4Bn equity in the company as of today and think that this valuation is fair. (ii) .I1/ on one or several of the PD drilling assets accompagned with long-term CNOOC drilling contract(s). We would be happy to consider a 50/50N and there would be a direct trade-off between the contract value (dayrate) and the JV valuation. We think that the market rate for our rigs is currently at $450k/day and with such a contract, they could invest in the Pacific Drilling rig(s) "at cost". Please let me know if anything is unclear Best Cyril EFTA00755213