Connacher Oil and Gas

I am not 100% clear on bitumen royalties but.....

My understanding is at $90 WTI, it is based on WTI, that the payout would be 5.31% on gross revenue until the project is paid off.

So if we assume a $360 million dollar cost the royalty rate does not increase until the full capital expenditure, in this case $360 million is paid off. Thus the cash flow will not drop until it is paid off!