This statement in the financials I think speaks to the point Collin made when asked about the taxability of the sale proceeds where he said it would be tax free as cost recovery, but it does appear there will be some gain. You would assume that might be taxable, but not sure:
"Conveyance accounting policy:
Based on the accounting policies followed by the Company conveyance accounting is triggered on the sale of a property, where applying judgment to the facts presented, it concludes that sufficient risks and benefits of ownership has passed to the transferee. If a part of the interest in an unproved property is sold, the amount received shall be treated as a recovery of cost. If the sales price exceeds the carrying amount of a property, or exceeds the original cost of a property, a gain shall be recognized in the amount of such excess. As Elk and Antelope fields do not have proved reserves as at the date of accounting for this transaction, the amounts received are first treated as recovery of cost, and only amounts received over the carrying amount of property is booked as gain on conveyance of the asset.
Preliminary assessment of Conveyance accounting as at March 31, 2014:
The conveyance accounting for the revised Total SPA will be accounted for in the quarter ended March 31, 2014. The following table presents the preliminary view of the cash flows that are expected to be recorded for the quarter ended March 31, 2014.
Conveyance accounting (excluding FID and cargo payments, and appraisal carry on wells within PRL 15) based on Gaffney Cline certified best case scenario of 7.01 Tcfe
Conveyance proceeds receivable:
$959,111,450
Discounted value of cash f low s 906,635,158
Less allocation against oil and gas properties in the balance sheet (604,348,475)
Expected gain on conveyance 302,286,683
On a conservative basis, no cash flows relating to final investment decision or subsequent first LNG cargo payments relating to Elk and Antelope fields have been included within the cash flows calculation above. When the transaction is accounted in the quarter ended March 31, 2014, these numbers will change reflecting an updated assessment of the relevant inputs including discount rates and other risk factors relevant to the underlying transaction. At each reporting period these factors will be assessed to take account of any changes to the underlying risk factors used in the calculation along with changes to resource estimates, which will result in a change to the gain on conveyance."