Tiger Oil began operations on January 1, 20XA. Assume the following facts about Tiger’s first two years of operations. All reserve and production quantities apply only to Tiger Oil’s interest. Ignore the computations for future income tax.

REQUIRED:

a. Prepare the required disclosures under ASC 932-235-50, assuming Tiger is a successful efforts company.

b. Assume instead that Tiger is a full cost company that amortizes all possible costs. Prepare only those disclosures that would differ under full cost compared to successful efforts.

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Item a. Acquisition costs b. G&G costs Test-well contribution c. Drilling costs: IDC Tangible Life of equipment d. Drilling results: e. Estimated production of estimated proved reserves, bbl f. Reserve estimate, bbl 12/31/XA Proved, at 12/31 (decreases by estimated production) 12/31/20XA Proved developed at 12/31 (decreases by estimated production and increases as a result of estimated development) g. Estimated tangible development costs k. Estimated current production costs /bbl 10 years Proved reserves Lease M $ 70,000 $ 90,000 20XB 27,500 20XC 20,000 20XD 15,000 20XB 20XC h. Estimated decommissioning costs 20XD i. Current market price of oil $300,000 130,000 20XA 62,500 20XB 35,000 20XC 15,000 20XA 25,000 20XB 35,000 20XC 15,000 j. Estimated future production costs 20XB based on year-end costs $60,000 45,000 $20,000 $40/bbl $330,000 20XC 240,000 20XD 180,000 $12/bbl Lease N Lease O $50,000 $40,000 $ 65,000 $80,000 15,000 $200,000 $180,000 20,000 Incomplete Dry