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Gold/Mining/Energy : KOB.TO - East Lost Hills & GSJB joint venture -- Ignore unavailable to you. Want to Upgrade?

To: Bearcatbob who wrote (2880)	5/30/1999 11:54:00 PM
From: grayhairs	Respond to of 15703

Hi Bob, <<As we have said - those in the know have put their $$$$$$ where their mouths are. What more needs to be said.>> Clay is the only one that I know that is putting ~$10 MM where his mouth is !!! That's why I mentioned it. Royalties are payable on all production from day one. A 25% royalty is equivalent to 25% of the revenue stream before the deduction of any costs at all (That is not rigorously true in all cases but for practical purposes it won't steer you too far off.) Working interests pay all operating, gathering and processing costs. Royalty owners pay no costs (in some instances royalty owners are responsible for a pro rata share of certain, but not necessarily all, gas processing costs. Royalty owners also sometimes have to pay a pro rata share of crude oil trucking to the sales point.) The APO refers to after payout of capital costs to drill, complete, test and equip, etc. Later, grayhairs