Carried Working Interest
This represents a situation where one working interest owner covers all or part of the capital costs for exploration, and potentially development, on behalf of another company. The carrying party is repaid out of the carried party's subsequent production cash flow. Note that the “carried” owner does not take the risk of exploration because it does not make an investment during exploration. Repayment is made only out of the profits made from production. On the other hand, the carrying party usually receives an uplift on its investment (i.e. 1.5 - 4.0 times its investment) from the carried party's cash flow.
