Replies to post #234938 on ERHC Energy Inc (ERHE)

[Al4343]

That puts things in a different light...we are looking at it selfishly as ERHE shareholders...SNP on the other hand has a lot more on their plate. Doesn't make the waiting easier, but could explain why.

Al

[daylatedolarshort]

Kownski-
23.4 There shall be no Royalties payable for the production of Natural Gas in the Joint
Development Zone.

23.5 The applicable Royalties payable in the Joint Development Zone for Crude Oil and
Casinghead Petroleum Spirit shall be according to the following sliding scale table:
P<20 R= 0
20 <=P<=70 R= 5%{1-[(70-P)/(70-20)]}
P>70 R= 5
where: P=production in thousands of barrels/day
R=royalty rate

http://www.nigeriasaotomejda.com/PDFs/Petroleum%20Regulations.pdf
==================================================================

5.1 Tax Rate
A uniform Tax rate of 50% shall be charged throughout the JDZ.

http://www.nigeriasaotomejda.com/PDFs/Updated%20Guidelines%202004.pdf

[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