PlungerGlad u raised this point. The flow results that we r...

Plunger

Glad u raised this point. The flow results that we r talking about are guestimates, as per data from nearby wells & what all has been ann'd so far. There is always an element of risk involved with DST's, it could flow 2MMCFD or 20, time will tell.

What is known for sure is that a company called ORCA produced 4837 MMCFD for in 2006 from this field.

Whats even better is the average daily gas prodn, 17.4 MMCFD for Q4 in 2006. So rest assured the guestimates are not all fluff.

As per the royalties, it depends on the agreement the partners have with the hosts. U can go to ORCA's website to read a bit more about this. A price of $4/mcf was used back in '06

On ORCA's website there is a pdf doc on the detailed valuation of this field. I quote the following, "In the event where all costs have been recovered with an annual return of 25% plus the % change in the Producer Price Index (PPI), an additional profits tax (APT) at 25% of the company's profit share applies. This rate can increase to 55% of the company's profit where all costs have been recvr'd with 35%+PPI. Higher revenue in the initial years leads to a rapid payback & consequently accelerates the APT payment. So, the terms for exploration rewards the company for taking higher risks by incurring capital expenditure in advance of revenue generation."

Hope u r watching Aminex tonite go allright.
Thats all.