The following reserve table appeared in the financial statements of Lomax Company:

REQUIRED: Compute the following ratios for all three years:

a. The reserve replacement ratio computed for all three methods and for oil and gas separately

b. The reserve life ratio computed for oil and gas separately

c. The net wells to gross wells ratio

d. The average reserves per well ratio computed using BOE, i.e., combining reserves based on relative energy content

e. The average daily production per well computed using BOE

Transcribed Image Text:

Estimated Quantities of Net Proved Crude Oil and Natural Gas (Worldwide Totals only) in Thousands of Barrels and Millions of Cubic Feet Year ended Dec. 31 2015 2016 2017 Oil Gas Oil Gas Oil Gas Beginning of year 171 779 234 783 335 724 Revisions of previous estimates 10 12 15 31 (11) 22 Improved recovery 21 30 25 23 15 50 Purchases of reserves in place 0 0 12 12 0 24 Sales of reserves in place (12) (12) (20) (99) (70) (24) Extensions & discoveries 69 78 90 42 6 150 Production End of year totals (25) (104) (21) (68) (24) (76) 234 783 335 724 251 870