ERHC Energy Inc (ERHE)

[Krombacher]

kownski,

Tax = 50% of profit.

Royalty = 5% of revenue (not profit).

Second, at AKPO, Total has 24%, and that is plenty. To prove it, I've done numerous spreadsheets, but let's keep it simple.

Total Revenues out of AKPO = Current Oil Price x Total Proven Oil + Natural Gas Price x Total Proven Gas = $52 Billion

Of that $52 billion Total only gets 24% or $12.5 Billion

We also know that the total costs for total were $5 billion for exploration and production.

So they're making a profit of 12.5 - 5 = $7.5 billion (EVEN ACCOUNTING FOR THE FACT THAT THEY ONLY HAVE 24%!)

That's a profit margin of roughly 60%. It's plenty.

Krombacher