Choice Petroleum has the following data in connection with Lease A:

Choice Petroleum is sole owner of the working interest.
If reserves are determined to be 20,000 barrels, is the well profitable? Would the well be profitable if reserves are 30,000 barrels? How many barrels of total production would it take to recover drilling and completion costs?

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Proved property cost $40,000 Drilling cost.. 300,000 Estimated completion cost 250,000 Estimated selling price per barrel. 55 Estimated lifting cost per barrel 23 State severance tax rate. 5% Royalty interest 3/16th