Hi Ztriker,Your statement":"I just question why conflicting...

Hi Ztriker,

Your statement":

"I just question why conflicting signals."

Ztriker, may I suggest that you ring the company to get your question(s) answered if you are not happy with the replies you have received here.

Cheers,
Brantley

http://www.hotcopper.com.au/post_single.asp?fid=1&tid=582504&msgno=2338639#2338639

Section from the MD's email:

//While some investors feel that 15% free carried interest in the projects is not significant, may I give you a couple of examples.

If there is a significant oil discovery made, development costs could be extreme, with construction of pipelines, possibly as far away as China, adding massive capital costs. MHL is protected from these costs via its free carry.

An example of a 85/15 regime is the oil and gas industry in Indonesia which is amongst the largest in South East Asia. Under government regulations, foreign companies are only entitled to own 15% of oil production, with the remainder owned by the Indonesian government. Costs and taxes are in the 15%.

Despite this, many of the largest oil companies in the world successfully and very profitably produce oil in Indonesia, despite having to carry all exploration and development costs through to production.//