Hi Magic,
Sorry, I was away from the computer for two days.
I respect the content of your post history. You have my 5 stars. I am a little disappointed with your question. Don`t you have your own opinion about the royalties issue? Why wait for somebody else? This was extensively discussed previously on this board and the info is available on the Google.
Remember the New Alberta Royalty frame work accepted by the government in 2007 with small modifications in 2008. This was a big news, as the energy sector was very disappointed and shifted their CAPEX to other more friendly jurisdictions.
Personally I blame my friend Lynn (Niceguy) who failed to convinced his friends in Alberta government :-)).
On more serious note:
Spidy is driving his BMW 2007/8 model. The New OILSAND Royalty model is based on the WTI prices and distinguish between the pre and post-payout period.
The Post-payout rate at WTI $80/bbl is 30.77% based on the net revenue (do not confuse this with the net cash flow). The 25%, Spidy is referring to is in the previous model. The pre-payout rate is 4.08% on gross revenue.
As per my previus post :
It does not mater if this will happen next year (like I think) or in 2012. The POD1 cash flow will drop significantly sooner or later.
All company projections (see CLL slide the show) are based on the pre-payout rates and are misleading long term investor who never read the small print, ignore other people opinion or DD and trust only the company headline news.
