How is a dry appraisal well accounted for? a. Charged to dry hole expense b. Remains capitalized

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How is a dry appraisal well accounted for?

a. Charged to dry hole expense

b. Remains capitalized so long as a subsequent appraisal well is either planned or underway

c. Capitalized if other development activities are underway in the general area

d. The treatment is determined based on whether the well is individually significant or individually insignificant

e. None of these

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Fundamentals Of Oil And Gas Accounting

ISBN: 9781593703639

6th Edition

Authors: Charlotte Wright

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Question Posted: Mar 08, 2024 10:02 AM

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How is a dry appraisal well accounted for? a. Charged to dry hole expense b. Remains capitalized

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Answer The proper accounting treatment for a dry appraisal well depends on several factors including its significance and the companys intentions rega...View the full answer

Fundamentals Of Oil And Gas Accounting

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