The one thing I never figured out about the deal is whether cost oil was 100% of oil produced until cost was fully recovered or something less than 100% until costs were recovered. I think it is 100% and that's why the deal was structured with a royalty to APA on the first 1.5B barrels. Do you know? Also, is cost recovery on a field basis or total lease basis?
It doesn't make a difference over the life of the project, but there are present value considerations. APA has a step function increase in cash flow once project costs are recovered.