RE:RE:RE:Q124 Increase In CashFrom
MANAGEMENT'S DISCUSSION AND ANALYSIS
For the three months ended March 31, 2023 and 2022
(all amounts in thousands of United States Dollars, except share, per share or per unit amounts)
4
Royalties to government in Thailand
Royalties to government are based on sales volumes and are payable in cash in the month following sales. Royalties
for Thai I licenses are a flat 12.5%, and for Thai III licenses are a sliding scale between 5% and 15% based on sales
volumes.
Royalties to Previous Owner in Thailand
Under the terms of the sales and purchase agreement between the Company and the previous owner of concession
B5/27, the Company is required to pay royalties to the previous owner in cash based on sales volumes computed as
follows:
1) 6% of gross revenue from certain production area within concession B5/27;
2) $2 per barrel of oil produced from certain production area within concession B5/27; and
3) 4% of gross revenue from certain production area other than that mentioned in (i) above within concession
B5/27.