Davenport Energy Company data in connection with Lease A is as follows: REQUIRED: Should the well be

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Davenport Energy Company data in connection with Lease A is as follows:

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REQUIRED:

Should the well be completed, assuming the following total production? Discuss your answer.

Case A: 10,000 bbl

Case B: 20,000 bbl

Case C: 30,000 bbl

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Fundamentals Of Oil And Gas Accounting

ISBN: 9780878147939

4th Edition

Authors: Rebecca A. Gallun, Ph.D. Wright, Charlotte J, Linda M. Nichols, John W. Stevenson

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Question Posted: May 29, 2024 10:00 AM

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Davenport Energy Company data in connection with Lease A is as follows: REQUIRED: Should the well be

Question:

Property cost (acquisition cost) Drilling cost (one well).... Estimated completion cost Estimated selling price per bbl $ 30,000 240,000 200,000 25 Estimated lifting costs per bbl. 5 State severance tax 6% Working interest share of revenue 87.5% Royalty interest 12.5%

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Fundamentals Of Oil And Gas Accounting

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