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Dec 6, 2005

Oil company hands over 1st royalty cheque to G.O.B.

Story PictureThe silence out of Spanish Lookout has been deafening, but tonight Belize Natural Energy announced that not only has the second oil well been drilled and completed, they’ve also handed over a cheque to the Government of Belize as per the royalty agreement. In a statement issued this evening, B.N.E. says the second well, named Mike Usher number two, is flowing at an average rate of five hundred barrels a day during the testing phase, about the same amount still being produced by Usher number one. Today representatives of the companies presented the Prime Minister Said Musa and Deputy Prime Minister and Minister of Natural Resources Johnny Briceño with the first royalty cheque, valued at thirty-six thousand dollars based on two hundred thousand dollars in sales due to government under the Production Sharing Agreement. The landowner will also receive a royalty of five percent of proceeds. An additional one percent royalty will be set aside in an environmental, educational and health fund. We understand an initial two thousand dollars was put towards that fund today. According to B.N.E. Director Sheila McCaffrey, all sales so far have been local, but international sales are scheduled to begin later this month. With tests underway at wells one and two, a third drill site is being prepared.


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