Choice Resources (fka CZEKF)

[nutsaboutgolf2001]

Bob can you help me understand Choice's position

From a previous update: "Choice has a capital interest in this well of 19% with a 30% working interest before payout of the well costs and 52.5% after payout of the well capital. Choice will also receive a 10% gross over-riding royalty on 45% of production before payout reverting to the described working interest after payout."

The 19 % - does this mean they have to pay for 19 % of the costs to drill and develop this well?

Then they get 30 % of what - revenues less costs? until when? until all investors have received their capital back (Choice would receive their capital back before some of the others as they only put in 19 % of the capital). And then once everyone has received their capital back (or more in Choice's case), then Choice gets 52.5 % of what (revenues less operating costs?). And in addition (to the 30 % before payout) Choice receives 4.5 % of revenues (or of revenues less costs) before payout (as royalties).

Can you clarify the above for me. And do we have any idea of how much capital was expended on this well, how much production will be worth and how long it will take before they reach the 52.5 % payout level.

If you are as much in the dark about the ultimate financial ramifications as I am, not a big deal (don't worry about it).