Two leases in far West Texas are being combined to form the West End Unit. REQUIRED: a.

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Two leases in far West Texas are being combined to form the West End Unit.

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REQUIRED:

a. Determine the participation factors for each party, assuming the participation factors are based on the acreage contributed.

b. Determine the participation factors for each party, assuming the participation factors are based on the net recoverable barrels contributed.

c. Determine the participation factors for each party, assuming the participation factors are based on the acreage contributed being weighted 40% and the net recoverable barrels being weighted 60%.

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Fundamentals Of Oil And Gas Accounting

ISBN: 9781593703639

6th Edition

Authors: Charlotte Wright

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Question Posted: Mar 08, 2024 10:01 AM

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Two leases in far West Texas are being combined to form the West End Unit. REQUIRED: a.

Question:

Lease 1 WI: 100% RI: 1/7 1/7 Acreage contributed: Estimated net recoverable bbl: Lease 2 WI: 75% 25% RI: 1/8 Acreage contributed: Estimated net recoverable bbl: Jerkin Company Sam Sofer John Hill 300 acres 150,000 bbl Abram Company Ettom Company E.B. Little 200 acres 250,000 bbl

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Fundamentals Of Oil And Gas Accounting

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