Bear Oil Company has 80% WI and is the operator of an offshore block in the Gulf. Gate Company has a 20% WI, and the royalty rate is 10%. Production for the month is 500,000 barrels and the sales price is $60. How much revenue goes to Gate?

(Please type your answer as a whole number without decimal places using correct comma placement. Example: 10,000).

$___________________

Answer rating: 100% (QA)

Revenue for Gate Company Gate company holds 20 WI Working Interest a percentage of own... View the full answer