OTCPK:ATGYF - Post by User
Comment by
Bigbadoilon Sep 20, 2007 6:30pm
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Post# 13438516
RE: TSX slips as Alberta mulls energy policy chan
RE: TSX slips as Alberta mulls energy policy chanIn the UK North Sea, there are no royalities but each field is "ring fenced" in terms of costs. After payout, the operator pays 50% of revenue (after op-costs) when all the capital costs recovered from the field.
This very similiar to the oilsands but here they will be only paying 33% (after cost recovery) under the proposed plan. Still low in my mind.
Every play is very different, For example: SAGD is very different from mining tar sands, gas vs conventional oil etc, etc. And they should not be all "tarred" with the same royalty brush (sorry about the pun!) LOL.
Increased royalties with product getting world prices is infinitely better than controlled prices (which seems to oocur in alot of jurisdictions out there!)
Bigbadun'