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Gold/Mining/Energy : International Rochester Energy Corp. (V. ROH)
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To: R.A.K. who wrote (168)5/10/1997 6:36:00 AM
From: Ditchdigger   of 188
 
RFB- Hypothesis-- Well producing 4000 barrels per day
* Ecopetrol receives 20% royalty of total production(20%X 4000)=800b
( I believe this is a cash royalty, but will convert to barrels)
* Ecopetrol receives 50% of production(after royalty payments),
50% X (4000-800)=1600b
* Ecopetrols cut=2400b of every 4000b
( this holds true until 60 million barrels are produced, Ecopetrols cut progressively gets larger until maxing at 70% at 150 million barrels produced)

Balance of 1600b oil gets split (4000-2400),1/3 to ROR,HEC,PKC
Bottom line 528 barrels out of every 4000b, to each
With the 20% royalty,I see no problem with Ecopetrol being able to back in anytime after well is commercial

Regards
KWD
PS:I would like to hear any opinions about these calculations.
Agree, disagree ( I was surprised when I worked these out)
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