big news...here is an excerpt from the PSA
from the yahoo board....sharing % and signors...
ARTICLE 13:
RECOVERY OF PETROLEUM COSTS AND PRODUCTION SHARING
13.1
Following the date of initial production for each field, the Contractor shall pay to the Government a royalty of 15% based on the valuation of the petroleum products.
13.2
The Contractor shall have the unrestricted right to receive, each Calendar Year, for the purposes of recovery of Petroleum Costs, a maximum share of fifty percent (50%) of the production from the Contract Area not lost or used in Petroleum Operations.
13.3
Petroleum Costs shall be recoverable as follows:
(a)
Petroleum Costs incurred during the execution of Petroleum Operations relative to the Contract Area, with the exception of Capital Expenditures, as defined in Appendix B {there is no Appendix B},which shall be recoverable either in the Calendar Year in which these Petroleum Costs are incurred or in the Calendar Year in which the first Commercial Discovery in the Contract Area is put into production, whichever is the later.
(b)
Capital Expenditures incurred relative to each Exploitation Area shall be recoverable at an accelerated depreciation rate. Recovery of Capital Expenditures related to an Exploitation Area shall commence either in the Calendar Year in which expenditure is incurred or in the Calendar Year in which production from said Petroleum Area commences, whichever is the later.
(c)
To the extent that, in a Calendar Year, recoverable Petroleum Costs exceed the value of the percentage set forth in Article 13.2 above, the excess shall be carried forward in the next succeeding years until said Petroleum Costs are fully recovered.
13.4
After determination of the share of Petroleum production allocated to recovery of Petroleum Costs by the Contractor pursuant to the provisions of Article 13.1, 13.2 and 13.3 above, the Contractor shall receive, as its remuneration, a percentage of the remaining production after royalty during each Calendar Year. For this purpose, said remaining production shall be shared between the Government and the Contractor as follows:
Increments of daily production
(in Barrels per day)
Government Share Contractor Share
From 0 to 2000 25% 75%
From 2001 to 5000 30% 70%
From 5001 to 10000 40% 60%
Over 10000 50% 50%
For the Republic of Guinea:
Dr. Alpha Mady SOUMAH
Ministre-Director de Particuleir
President de la Republic de Guinea
Date: _________, 2002
(Seal)
For the Contractor:
Date: _________, 2002
Royalty and Production Sharing Agreement between Republic of Guinea and USOil Corporation 2002
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