The case against selling, page-45

The term "free carried" is a misnomer. The leaseholder of the block, HDR, has given up a percentage of the leased block reservoir to partners who pay for the drilling. This preserves capital for the leaseholder, but reduces percentage of final returns should development go ahead. (also reduces they % of production costs)This is a way of keeping a share of leased reservoir without having to place more shares on market, by leaseholder, to pay for drilling. Say 78 % given up of a one billion dollar reservoir, costs 780 million dollars. Nothing in the oil field is free. Looks like development will go ahead for this one and should Dana areas prove sucessful then there may be a larger joint venture for the accumulated blocks to reduce production costs. Government of Mauretania not with standing, post gulf war stance.