International Rochester Energy Corp. (V. ROH) Message Board

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Gold/Mining/Energy : International Rochester Energy Corp. (V. ROH)

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To: Ditchdigger who wrote (171)	5/10/1997 11:49:00 AM
From: R F B, Jr.	of 188

Kenneth : You can do the math per barrel, barrel per day, or on total reserves ... it all should work out the same. Colombia as host country gets 20% off the top. As you say, 800 bpd. Up to 60 mbo (which happens to be total estimate for this field according to pre-drill surveys), HEC gets 50% and Ecopetrol gets 50%. Each gets 1600 bpd. HEC's share is further doled out to their drilling partners. PKC gets 25% (400 bpd) as does ROR which leaves HEC with 800 bopd. There are other wells to be drilled on this field. If 60 mbo is exceeded, Ecopetrol's share increases to 70% (after 20% royalty is paid) up to 150 mbo. HEC's share would then be 30% of 80% or 24% of the 4000 bopd. ROR would get 25% (240 bopd) as would PKC. Over 150 mbo Ecopete's share goes to 75% which would leave HEC with 800 bopd to be split 50% HEC, and 25% each to other partners. Worst case ROR gets 5% of oil. Best case (no back-in) ROR gets 10%. This of course is IMO only. Ecopetrol does not want to back in to small fields I've been told. I don't see why as you pointed out, who wouldn't give them a short term loan. RAK : Sorry if I jumped on you for your post. Bad day all around yesterday. RFB

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