DB i think you are correct in that most PSC's have a formula that allows a higher % of revenue to go to approved exploration cost recovery until it is all covered which helps in the early years. Usually the Operator will have a schematic flow diagram and explaination showing this point. We are getting into the relms of a sophisticated financial model whihc is all good as it means cash is on its way.
About to run again? Last chance for cheepies?, page-165
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