Economy Oil Corporation has a waterflooding system for a reservoir in Oklahoma. Costs of operating the system

Question:

Economy Oil Corporation has a waterflooding system for a reservoir in Oklahoma. Costs of operating the system for the month of July were $40,000.

a. Give the entry to record operating expense, assuming the reservoir underlies only Lease A.

b. Assume the reservoir underlies the following three leases:

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REQUIRED: Give the entry to record operating expense, assuming allocation based on the volume of water.

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Related Book For answer-question

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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Economy Oil Corporation has a waterflooding system for a reservoir in Oklahoma. Costs of operating the system

Question:

Lease Producing Wells A B C 4 1 7 Injection Wells 213 Volume of Water 500 400 100

Step by Step Answer:

Fundamentals Of Oil And Gas Accounting

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