Royalty Tax Fiscal Regime-Part 2

Royalty / Tax Fiscal Regime Part 2:

Royalty / Tax Fiscal Regime Part 2

BT CF:

BT CF Total Oil & Gas Revenue – Royalties – Bonuses & Fees – Opex – Capex –Abandonment ------------------------------ = Before Tax Cash Flow ------------------------------ 100 – 10$ (10% on gross revenue) –2$ –20$ – 2 0$ ($5 intangible,$15 Tangible) –2$ ------------ 46 $ -----------

Taxes:

Taxes Gross Revenue = Total Oil & Gas Revenue – Royalties -------------------------------- = Net Revenue -------------------------------- - Opex – Intangible Capex – Depreciation, Depletion & Amortisation –Uplifts –Tax Loss Carry Forward –Abandonment ---------------------------------- = Taxable Income ---------------------------------- –Taxes –Bonuses -------------------------------- = Accounting Profit (or Loss) 100$ – 10$ (10% on revenue) -------------- 90$ -------------- - 20$ – 5$ (intangible capex expensed 100% ) – 5$ (3 year straight line,15$) –3$ (20% uplift on tangible capex ) –5$ – 2 $ ----------- 50$ ----------- - 15$ (30%) -2$ -------------- 33$

AT CF:

AT CF Total Oil & Gas Revenue – Royalties – Bonuses & Fees – Opex – Capex –Abandonment – Taxes ------------------------------ = After Tax Cash Flow ------------------------------ Accounting Profit (Loss) + DD&A + Uplifts +Tax Losses - Capex ------------------------------ = After Tax Cash Flow ----------------------------- 100$ -10$ -2$ -20$ -20$ -2$ -15$ ------- 31$ ------- 33$ +5$ +3$ +5$ -15$ -------- 31$ --------

Slide 5:

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