RE: Second Request I do not believe anyone can tell you when the 50% will be reached as the following statement from the most recent MD&A indicates MMT is maintaining a volatile recovery rate:
'During the cost recovery phase, Mart is entitled to a maximum of 82.5% of the production revenues from the Umusadege field after the deduction of royalties, taxes, Niger Delta Development Commission ("NDDC") contributions, operating costs and abandonment obligations. Once Mart has recovered all of its capital costs, all production revenues remaining after deduction of royalties, income taxes, NDDC contributions, operating costs and abandonment obligations are shared 50% to Mart and 50% to its co-venturers, Midwestern Oil and Gas Company Plc. ("Midwestern") and Suntrust Oil Company Limited ("Suntrust"). Mart was in cost recovery throughout Q112 and therefore earned the maximum recovery rate of 82.5%, compared to 61.2% for Q111. The Company plans to continue developing the Umusadege field and adding recoverable costs during 2012, which will affect Mart's share of revenue for the 2012 year as additional eligible costs are incurred and recovered."
The cash flow is, to my mind, distorted since this capex is not deducted from ongoing cash flows and MMT simply take a percent of total qtly prodn for revenue and cash flow purposes. Still, it eventually comes out in the wash as it is a 'cost reovery.' The more important aspect is that production continues to increase so the lower recovery rates (as and when they materialise) will be on ever increasing (and significantly increasingly, we hope) outputs of oil.