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.

Assume a tax rate of 40% and that Tiger does not qualify for percentage depletion because it is an integrated producer. Ignore deferred taxes and the alternative minimum tax.

a. Prepare the required disclosures under SFAS No. 69, 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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12/31/20XA a. Item Acquisition costs b. G&G costs Lease M Lease N Lease O $ 70,000 $ 50,000 $40,000 $ 90,000 $ 65,000 $80,000 Test-well contribution 15,000 c. Drilling costs: IDC $200,000 $180,000 Tangible Life of equipment $300,000 130,000 10 years 20,000 d. Drilling results: Proved reserves Incomplete Dry e. Estimated production of 20XB-27,500 estimated proved reserves, 20XC-20,000 bbl 20XD-15,000 f. Reserve estimate, bbl 12/31/XA Proved, at 20XA-62,500 12/31/(decreases by 20XB-35,000 estimated production) 20XC-15,000 Proved developed at 12/31/ (decreases by estimated 20XA-25,000 production and increases 20XB-35,000 as a result of estimated 20XC-15,000 development)