MN, Rob Crook, CEO of Exoma has very graciously provided the...

MN, Rob Crook, CEO of Exoma has very graciously provided the following explanation:

In the petroleum industry Participating Interest, sometimes known as a Working Interest, is the percentage interest that a Participant holds in a Joint Venture.

For example, if a Joint Venture consisting of two companies with equal shares has an interest in an exploration permit, each company has a 50% Participating Interest in that exploration permit. This means they are liable for 50% of the costs and are entitled to 50% of any benefits that might arise.

In the case of Exoma?s permits, CNOOC Gas and Power will earn a 50% Participating Interest in each permit by spending $50 million on exploration work across all five permits. During this earning period CNOOC will pay 100% of Joint Venture costs until the total of $50 million has been spent. Thereafter, both Exoma and CNOOC will pay their respective Participating Interest shares of all future exploration and development expenditure.

I thanked Mr Crook for his advice.