Big Banc Split Corp T.BNK

cost recovery 101

[braincloud]

From the Petroleum Agreement page 22
After Contractor has recovered all of its Petroleum Costs ( see definition of costs in prior post ) from the Cost Recovery Petroleum, the remaining Cost Recovery Petroleum shall be "Profit Petroleum". As its reward for the risk of conducting the Petroleum Operations under the Petroleum Agreement, Contractor shall be entitled to 100% of the Profit Petroleum.

There is a formula that is attached but I see it got garbled after I posted it. Basically, the way it goes is that once the operator gets his capital
( including operating expences back) cumulatively FIRST, then the ALBS get 50% of the "PROFIT TAX". Look at this this way. They spent $253 Million that year. (See the annual report for details) in order for the ALBS to make a claim, BNK would have had to have re-cooped $253 million CAPEX AND OPEX through sales, then made another $114 million on top of that to make good on the ALB claim of $57 million in PROFIT TAX!!! Is that crystal clear now???
They DID recieve $66 million in Royalty that year and BNK recorded a profit of $13 million on it's income statement.
THE INCOME STATEMENT FOR BNK HAS NOTHING TO DO WITH THE "PROFIT TAX" THE ALBANIAN TAX DEPARTMENT IS CLAIMING

[good40]

Thanks, I'll take your word for it. Could you post the segment under Operating Expense, specifically the exclusions to the same ? Would also appreciate the link to the Petroleum Agreement. Thanks for your trouble.

[braincloud]

Good40, I'm afraid, thats all you get from me. Find the Agreement on your own. I had to do considerable searching because you have to go back several years. You can also phone the company and I'm sure they will make it available to you. I already posted the definitions to the expences allowed under the agreement. I cut and pasted them. Read them for yourself. It's several paragraphs so

[good40]

Why you won't post the link to BNK's Petroleum Agreement is beyond me. In any case, thanks to Lordlskander, I do have the Petroleum Agreement for Petromanas, V.PMI  and you can confirm or deny similarities. Operating Expenses means all direct and indirect costs, expenses and expenditures made after the Date of Initial Commercial Production, which costs, expenses and

[braincloud]

I don't why you can't open the copy of the PDF'd section posted? Further I don't know why you can't find the effing sheit yourself? Are you 10 years old? Ask your Daddy to help you! You know, guys like you really tick me off. You all have smart unsubstantiated comments to make but can't ever contribute anything of value. NO its not the same. The one I posted is much more

[LordIskander]

that's true. Accounting profit (what we see) is different from "fiscal" which only AKBN sees. Albanian media is still clueless as to the difference. I saw only one article making the distinction and that was an interview with BNK director Leonidas (not the one of the Thermopylae fame though I wish we had him as a director)