The following costs relate to Lease A as of 12/31/18: In January, 2019, Well No. 1 ceased

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The following costs relate to Lease A as of 12/31/18:

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In January, 2019, Well No. 1 ceased production and was abandoned. In June 2019, Well No. 2 ceased production, and the well and the lease were abandoned.

REQUIRED: Prepare journal entries for the abandonments.

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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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The following costs relate to Lease A as of 12/31/18: In January, 2019, Well No. 1 ceased

Question:

Proved property..... Accumulated DD&A-proved property. Well No. 1: Wells and equipment Well No. 2: Wells and equipment Accumulated DD&A-L&WE... $ 80,000 40,000 500,000 360,000 600,000

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Fundamentals Of Oil And Gas Accounting

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