Hill Companys production from each well on Lease C and Lease D is estimated based on a

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Hill Company’s production from each well on Lease C and Lease D is estimated based on a 24-hour test. Oil produced from each well on each lease is commingled and measured before leaving each lease. The oil produced from each lease is then commingled and delivered to a central tank battery.

Assume the following data for Lease C:

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Assume the following data for Lease D:

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Measured production is 2,000 barrels from Lease C and 2,280 barrels from Lease D. After treatment at the central tank battery, 4,100 barrels are sold.

REQUIRED: Allocate the 4,100 barrels sold to each lease and then to each well in a two-stage allocation. Round the ratios to three decimal places.

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