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...

To determine if the well in each case was profitable we need to calculate the total revenue generate ...

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

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

Discuss your answer.

Problem 9:-

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Fundamentals Of Oil And Gas Accounting

ISBN: 9781593703639

6th Edition

Authors: Charlotte Wright

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

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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

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To determine if the well in each case was profitable we need to calculate the total revenue generate...View the full answer

Fundamentals Of Oil And Gas Accounting

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