Exhibit 3, section 18, page 57

Your calculations are right. Bear in mind that that's the split for "Profit Gas." Until the cost of the development is recovered, only a portion of the total production is split up according to that table. Initially, 65% of the production goes to offset the cost account ... up to 150 bcfe of cumulative production. The other 35% gets split according to the table on page 57. From 150 bcfe to 300 bcfe, 50% goes to cost recovery and the other 50% to profit. Above 300 bcfe, if there's still costs in the cost account, 40% goes to cost recovery and 60% to profit. Once costs have been recovered it all goes to profit, except for a small amount that goes to offset monthly operating costs.

Another post

I looked at the Arbitration exhibits and particularly the request for relief from BG (page 34 of 118 in the PDF document Exhibit 8-20), basically they are asking for SNG to pay up, stop commingling, and honor the contract. No mention of taking the interest of SNG in the block, as could be provided for in the JOA. Maybe BG is not going to hold a gun to our head, at least not yet.

my comments below:

I also added a link to a gov study on royalty by country in the off topic forum.....so it seems TnT gets their 50+ % subject to sharing rules....and SNG gets 45% of 50 = .225, BG 30% of 50 = .15, and when/if CHQ gets 25% of 50 = .125......if we assume 4tcf and convert to boe then SNG = 149MBOE, BG 100 and CHQ 83.