Tellurian Inc. Quarterly report pursuant to Section 13 or 15(d)

Stock Based Compensation (Tables)

3 Months Ended

Sep. 30, 2012

The following table summarizes the stock option activity for the three months ended:



	September 30, 2012
	Number of Shares		WAEPS ⁽¹⁾
June 30, 2012	6,753,125		$1.44
Granted	925,000		$1.31
Forfeited	(483,334	)	$1.13
September 30, 2012	7,194,791		$1.37
Weighted average remaining contractual term	5.1 years

⁽¹⁾ Weighted average exercise price per share

The fair value of stock option grants was estimated using the following weighted average assumptions for the three months ended:



	September 30,
	2012					2011
Number of options ⁽¹⁾	925,000					—
Weighted average grant date fair value per share	$1.31					$0.00
Expected dividend	$0.00					$0.00
Risk free interest rate	0.6	%	-	0.8	%	—	%	-	—	%
Expected life	5.13 years		-	6.00 years		0 years		-	0 years
Expected volatility (based on historical price)	60.7	%	-	63.5	%	—	%	-	—	%

⁽¹⁾ There were no stock option grants for the three months ended September 30, 2011.