BRK discussion, page-948

Hi Dorge

I'm no accountant but assume this is how it goes.

Since they are funding drilling effectively through borrowing through the Merchant Drilling Facility ( Stack A joint venture), and they have to direct all revenue back into the drilling facility until the costs of a particular well is paid off, the well cost is deducted directly against the revenue so there should be no tax due until the well is paid out... once the well is paid there may be tax payable after other costs eg, corporate, finance , admin are deducted.

Cheers

Dan