An oil well has produced consistently for the last five years. The monthly oil production for...
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An oil well has produced consistently for the last five years. The monthly oil production for each year is given in the table below. It costs $2,000 per month to operate the well, the current oil price is $60/Stb, and the severance tax is 7.085% of the gross value. The well is not producing any associated gas. Compute the following: a) The EL based on 100% WI and 87.5% NRI b) The exponential decline based on a graphed plot of production versus time c) The remaining oil reserves as of 1/1/2011 d) Production rate at the end of 2011 e) The remaining life of the well f) Ultimate oil recovery g) Production for 2011, 2012, and 2013 Month 2006 January 2,399 February 2,059 March 1,808 April 1,627 May 1,699 June 1,575 July 1,618 August 1,660 September 1,575 October 1,538 November 1,541 December 1,702 Oil Production, Stb 2008 1,637 1,265 1,386 1,310 1,300 1,241 1,289 1,299 1,240 1,290 1,240 1,348 2007 1,882 1,621 1,536 1,551 1,526 1,553 1,514 1,428 1,320 1,534 1,309 1,474 2009 1,334 1,177 1,208 1,191 1,370 1,315 1,268 1,312 1,224 1,229 1,202 1,229 2010 1,151 1,028 1,151 1,075 1,081 983 1,037 959 989 897 1,044 996 An oil well has produced consistently for the last five years. The monthly oil production for each year is given in the table below. It costs $2,000 per month to operate the well, the current oil price is $60/Stb, and the severance tax is 7.085% of the gross value. The well is not producing any associated gas. Compute the following: a) The EL based on 100% WI and 87.5% NRI b) The exponential decline based on a graphed plot of production versus time c) The remaining oil reserves as of 1/1/2011 d) Production rate at the end of 2011 e) The remaining life of the well f) Ultimate oil recovery g) Production for 2011, 2012, and 2013 Month 2006 January 2,399 February 2,059 March 1,808 April 1,627 May 1,699 June 1,575 July 1,618 August 1,660 September 1,575 October 1,538 November 1,541 December 1,702 Oil Production, Stb 2008 1,637 1,265 1,386 1,310 1,300 1,241 1,289 1,299 1,240 1,290 1,240 1,348 2007 1,882 1,621 1,536 1,551 1,526 1,553 1,514 1,428 1,320 1,534 1,309 1,474 2009 1,334 1,177 1,208 1,191 1,370 1,315 1,268 1,312 1,224 1,229 1,202 1,229 2010 1,151 1,028 1,151 1,075 1,081 983 1,037 959 989 897 1,044 996
Expert Answer:
Answer rating: 100% (QA)
solve the given problem well follow the steps for each part a Calculate the Estimated Ultimate Recovery EUR based on 100 Working Interest WI and 875 Net Revenue Interest NRI The EUR can be calculated ... View the full answer
Related Book For
Federal Taxation 2016 Comprehensive
ISBN: 9780134104379
29th edition
Authors: Thomas R. Pope, Timothy J. Rupert, Kenneth E. Anderson
Posted Date:
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