Buckley Oil Company, a successful efforts company, began operations January 1, 20XA. Assuming the following facts about Buckley’s first two years of operations, prepare the required disclosures under SFAS No. 69.

All reserve and production quantities apply only to Buckley Oil’s interest. Ignore the computations for future income tax.

Assume a tax rate of 40%, and that Buckley does not qualify for percentage depletion because it is an integrated producer. Ignore deferred taxes and the alternative minimum tax. (What is the significance of no estimated future development costs on Lease Q and Lease T as of 12/31/XB?)

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12/31/20XA Item a. Acquisition costs b. G&G costs c. Drilling costs: IDC Tangible Life of equipment Lease Q $ 50,000 $ 30,000 Lease T $ 40,000 $ 35,000 $150,000 $100,000 80,000 10 years 10,000 d. Drilling results: Proved reserves Incomplete e. Estimated production of estimated 20XB 7,500 proved reserves, bbl 20XC-15,000 20XD-10,000 f. Reserve estimate, bbl 12/31/XA Proved, at 12/31/(decreases by estimated production) 20XA-32,500 20XB-25,000 20XC-10,000 Proved developed at 12/31/XA (decreases by estimated production and increases as a result of estimated development) g. Estimated tangible development costs (life, 10 years) 20XA-27,500 20XB-25,000 20XC-10,000 20XB-$25,000 h. Estimated decommissioning costs 20XD-$15,000 i. Current market price of oil $ 52/bbl