from the latest admission doc27 Mar 2018 09:50
page 317 /318 (yep i did read the lot, even if i could not recall all the detail!):
Working interest
The Company operates with 55 per cent. working interest in the South Disouq concession.
Principal fiscal terms
The Company is entitled to a share of natural gas and liquefied petroleum gas produced under the
South Disouq concession as follows:
(i) 25 per cent. if production is 500,000,000 SCFD and above;
(ii) 27.5 per cent. if production level is between 250,000,000 and 500,000,000 SCFD;
(iii) 30 per cent. of production level is between 100,000,000 and 250,000,000 SCFD; and
(iv) 32.5 per cent. if production level is less than 100,000,000 SCFD.
According to the South Disouq Concession Agreement, all operational costs and expenses are borne
by the Contractor and are subject to cost recovery up to 25 per cent. of the production of the South
Disouq Concession Agreement in accordance with its terms. Save for the operational costs, expenses
and the bonuses (if applicable), no other payments, whether rent or access of surface rights, are
required to be paid by the Contractor to EGAS.
Pursuant to the South Disouq Concession Agreement, cost recovery gas price and production sharing
gas shall be agreed under the relevant gas sales agreement. The cost recovery and production shares
of liquefied petroleum gas produced from a plant constructed and operated on behalf of the Contractor
members and EGAS is separately valued for propane and butane in according to a specific formula
under the South Disouq concession, unless otherwise agreed between EGAS and the Contractor
members.
There are certain bonuses which shall be paid by the Contractor members to EGAS under the South
Disouq Concession Agreement, namely;
(i) bonus of US$4 million to be paid during the issuance of the South Disouq concession and its
execution by the Minister of Petroleum;
(ii) US$25,000 upon the approval on each development lease;
(iii) US$2 million upon the five years extension of any development lease;
(iv) assignment bonus (only to third parties) equal to total liabilities if assignment is made during
exploration period, 10 per cent. of the value of the assignment if assignment is made during
production period, and both values if assignment is made during exploration period whilst a
development lease is in place;
(v) US$150,000 assignment bonus if assignment is made to a contractor member/subsidiary;
(vi) US$250,000 training bonus (for EGAS employees) during each exploration period;
(vii) production bonus which varies from US$1 million to US$4 million when the production reaches
certain level (from 10,000 BPD to 25,000 BPD � or equivalent barrels of gas according to a
specific formula) for 30 consecutive days.
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