Ann: Sugarloaf Operations Update , page-6

Following earn in work program across its acreage Aurora will have an interest in 10 horizontal wells within the Sugarkane field.
XHilcorp will earn incrementally as each activity is completed (up to ~ 50% of each Farminorsinterest) leaving Aurora with a net WI of about 10,000 acres in a total acreage position of approx. 50,000 acres.
XMajority of field development costs thereafter will come from production cashflow

I take it as: Hillcorp to be reimbursed for their cost of drilling first before any profit due for the JV partners,
well by well.

Just an opinion. Clarification would by nice.