Oil and natural gas purchasers purchase the oil and natural gas produced from the wells within the areas of interest that the Company intends to make acquisitions on a 45 day turnaround timeframe. Put simply revenue produced from oil and natural gas sales for the month of June 2005 will be remitted to the Company by the oil and natural gas purchaser between the 30th and the 45th day after the last day of the last production month of a Production Quarter. Which in this example is June 2005? Therefore because of the nature of payment made by oil and natural gas purchasers, keeping within calendar Production Quarters and allowing time for the Company’s auditors to review the financial statements of the Company, Dividends will be paid within the first 7 business days of March (Production Quarter October through to December), June (Production Quarter January through to March), August (Production Quarter April through to June), and December (Production Quarter June through to September.) Only shareholders that have completed a full Production Month within a Production Quarter will be eligible to be paid Dividends.
By way of example if an investor applied for shares in the Company on the 22nd of February the first full Production Month within that Production Quarter would be March. The Shareholder would be eligible for a pro rata Dividend payment the next time that Dividend’s were paid for the Production Quarter based on the number of full Production Months they had held their Shares in the Company. By this example the number of full Production Months is one being March. Therefore one twelfth of the rate outlined in section 4 of this Supplement would be payable to the Shareholder which in this example would be calculated as a 1% full franked Dividend. The same applies if the Shares were applied for on the 15th of January in that there would be two full Production Months within the Production Quarter that the Shareholder had held the Shares in the Company.
Investment Process...(1.5mb) 