Assuming the same data as given in problem 9, was the well in each case profitable?

Discuss your answer.

Problem 9:-

Property cost (acquisition cost). Drilling cost (one well). Estimated completion Estimated selling price ($/bbl). Estimated lifting cost ($/bbl).... State severance tax... $ 50,000 300,000 700,000 120 20 6% 12.5% Royalty interest. Case A: 5,000 bbl Case B: 10,000 bbl Case C: 15,000 bbl