Jackson Oil Company’s production for Lease A and Lease B is gathered into a common system and sold. Total sales for the month of July are 6,562 barrels.

Assume the following data for Lease A and Lease B:

Measured production is 3,300 barrels from Lease A and 3,500 barrels from Lease B.

REQUIRED:

a. Allocate production to each lease.

b. Allocate the amounts per lease determined in part a to the wells. Round the ratios to four decimal places.

Transcribed Image Text:

Well 24-hour Test, bbl Days Produced Lease A: 123 40 30 3 50 Lease B: 12 50 80 30 24 2222 24 30 28