During 2015, Post Oil and Gas Company completed the last well from its drilling and production platform

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During 2015, Post Oil and Gas Company completed the last well from its drilling and production platform off the coast of Louisiana. Unrecovered costs not including decommissioning costs on December 31, 2015, were $25 million, including $5 million in acquisition costs and $20 million in drilling and development costs. Total proved developed reserves were estimated to be 600,000 barrels as of January 1, 2015.

Production during 2015 was 30,000 barrels. At the end of the life of the reservoir, decommissioning costs are estimated to be $14 million, and salvage value is estimated to be $1 million. Compute DD&A for 2015.

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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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