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Message: A Thought

A Thought

posted on Jan 23, 2009 01:41AM

Out of the 5 million or so CIVC received for Garden Hill, Creditor Corps were paid $1.5million against the 4% royalties they are due when production is established. I suspect, as part of the deal for Garden Hill, PDI agreed to take on those royalty payments, which they will no doubt pay to Creditor Corp and which CIVC will then claim back.
I very much doubt the royalty is going to be paid in a single payment, but out of revenues from the well as PDI earns them. If we guess a profit of something like $10 per barrel with prices as they are, PDI will have to produce 3,750,000 barrels before CIVC gets the full $1.5 million. It won't be quick.

Regards
Dunnock

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