Quote:
Originally Posted by Claeren
^ I am not an expert on the new royalty scheme by any means but I was under the impression that the big increase was applied at the, then unheard of, high oil prices.
With these much lower prices are the increases that much as well?
22% more of $150/barrel is a long ways from 22% more of a $25/barrel.
Claeren.
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I'm not either, but I think we reach the 47% or so field average at around $80USD/bbl. The royalty rates vary according to the realized wellhead price and the average well production (eg. a higher producing well in the same field will pay more royalty than a lower producer) I honestly dont know what our royalty rate is now at $42/bbl. Having said that, as the price continues to drop we are forced to constantly re-evaluate the budget.
I'm going to figure out our current rate at $42/bbl...