4. pants

Each Company may elect to capitalize, or deduct as

incurred, intangible exploration expenses, or intangible drilling

and development expenses, or both, incurred after Production

Commencement Date. In the event that a Company does not elect to

deduct such costs incurred in a given Financial Year, such

Company shall capitalize and amortize such costs on a straight

line basis over a period of ten (10) Financial Years, beginning

with the Financial Year such costs are incurred.