Article 3.2 of the option agreement between Princess Petroleum and Treaty Energy Corp states that only 80% of the production from the Princess Concession is applied for Contractor (Treaty) Cost recovery. Not 100% as you state.
The overiding Production Sharing Agreement between Princess Petroleum and the Government of Belize states 100% of Petroleum to be initially applied to cost recovery.
Think it'll be an accounting nightmare with these different cost recovery percentages. IMHO.
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