June 2005
Finance
ŸSuncor
Initial Investment:
Ÿundeveloped
lands (scattered, generally short-term lands)
ŸSelf
Funding Model:
ŸPGS funds
all expenditures
ŸSuncor
provides what is effectively bridge financing
ŸTypical
Deal Terms:
Ÿrecover
invested capital, well commitment, GORR
Ÿdo not
participate in wells
ŸCompensation:
Ÿmodified
Suncor compensation (give up to gain approach)
Ÿincreased
pay for performance