not quite that simple. i copied and pasted a paragraph from the June 2010 2Q2010 results analysis document on the company website. i found most of the info i was looking for. Mart has 100% WI and a very high NRI until payout of capital costs. After payout, it drops down to a 50% of revenue after royalties, taxes, NDDC contributions, operating costs and abandonmen obligations are stripped out. I imagine it is on a well by well basis, which is why they say they ended up with a 64.2% NRI of total field production for 2Q2010.
does anybody know how much royalties and taxes are? the nigerian governemnt is probably getting a good chunk of change since they own the minerals.
Under the terms of the Finance and Technical Services Agreements (the “Umusadege F&S
Agreements”) agreements between Mart, Midwestern and Suntrust, Mart contributes to the development
of the Umusadege field by providing 100% funding of capital costs in exchange for an allocation of
hydrocarbons discovered and produced from the field. Under these agreements, during the cost recovery
phase, Mart is entitled to up to 95% of the production revenues remaining after deduction of royalties,
petroleum profits tax (“PPT”), NDDC contributions, operating costs and abandonment obligations. The
remaining 5% of production revenues are allocated 50% to Mart and 50% to Midwestern and Suntrust.
Once Mart has recovered all of its capital costs, all production revenues remaining after deduction of
royalties, PPT, NDDC contributions, operating costs and abandonment obligations are shared 50% to
Mart and 50% to Midwestern and Suntrust. During the six months to June 30, 2009, Mart’s capital costs
in respect of the Umusadege field had been recovered and the Company’s share of revenue was 64.2%
in Q210 compared to 68.0% in Q110 The Company plans to continue developing the Umusadege field
and adding recoverable costs throughout 2010, which will affect Mart’s share of revenue for the
remainder of 2010 as additional eligible costs are recovered.