OTCPK:MAUXF - Post by User
Comment by
mjh9413on Sep 16, 2014 4:18pm
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Post# 22941505
RE:FirstEnergy presentation
RE:FirstEnergy presentationMart tell us every qtr that the royalties are an ascending scale but then there are offsets for marginal field operators and while they experienced about 14-15% recent qtrs the top rate is 18.5% (but again there might be offsets to final applicable royalty rate, and is also field age dependent, etc.,) In a nutshell is hardly significant particulalry IF they achieve the reduced loss allocation using the Shell connection (and is that not up to 45K/day capacity). Any royalty increase is dwarfed by the receipts that willnow accrue to MMT and their partners. Also the business with ENI was still being 'negotiated' and loss allocation was meant to be suspended since ENI gave no response on requests for their calculation. Still this is moot if ENI is used less, and good riddance to them.
My one concern is what the cost of the purchase is and how it is to be financed (and maybe that Nigerian billionaire will get a 'cut'), but presumably the end result will be significant increases in revenues to the co-venturers building very favorably on the new pipeline benefits. GL