Assuming the same data as given in problem 8, was the well in each case profitable? Discuss

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Assuming the same data as given in problem 8, was the well in each case profitable?

Discuss your answer.

Problem 8

Elizabeth Petroleum data in connection with Lease A are as follows: image text in transcribed

REQUIRED: Should the well be completed, assuming the following total production?

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Fundamentals Of Oil And Gas Accounting

ISBN: 9781593701376

5th Edition

Authors: Charlotte J. Wright, Rebecca A. Gallun

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Question Posted: May 31, 2024 10:15 AM

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Assuming the same data as given in problem 8, was the well in each case profitable? Discuss

Question:

Property cost (acquisition cost). Drilling cost (one well) Estimated completion.. Estimated selling cost per bbl. Estimated lifting cost per bbl State severance tax. Royalty interest $ 50,000 300,000 500,000 60 20 6% 12.5%

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Fundamentals Of Oil And Gas Accounting

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