RE: RE: BUYOUT $ 200 MILLION ($ 1/SHARE) Nicky; KDcalgary has very ably explained how these pscs work and that ultimately lfd would get a 3.84% share of the production.
I would only clarify from his post that the 3.84% is total share not a share of profit oil. With decent production, costs are quickly recovered so during most of the production the company's share as cost oil is zero and what they get is from the sliding scale profit oil calculation.
In any event, it seems that serious posters understand that lfd, although holding a 40% interest in concession, will not receive anywhere near a 40% share of production as some fraudsters like to claim.
These deals typically will really fly because of the large reserve size and high producing rates. But companies do not normally burden themselves with a huge royalty like lfd has assumed? A 40% royalty makes company an industry laughing stock!