OT30132 - Capital gains: consideration other than cash: development carry
Development Carry involves the farmer in agreeing to bear some or all of the development costs relating to the farmer out바카라 사이트™s retained interest. Costs will be recovered, usually with an interest element, out of a share of future oil production from that interest.
The value of the 바카라 사이트˜carry바카라 사이트™ to the farmer out will therefore depend largely on an assessment of the probability of repayment of those costs to the farmer in and a comparison of the terms with those of other forms of available financing.
Where reserves are not clearly established and development is uncertain there may be a number of factors capable of influencing the potential value of such a 바카라 사이트˜carry바카라 사이트™. These include assessing the profitability of recovery, the carrier바카라 사이트™s preferential right to purchase future crude production.
It may be necessary to seek a detailed valuation report in support of any figures put to LB Oil and Gas (see OT30300+).