Deep Hole Oil Company used 100 Mcf of gas obtained from Lease A and valued at ($2.10/Mcf)

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Deep Hole Oil Company used 100 Mcf of gas obtained from Lease A and valued at $$2.10/Mcf$ for gas injection on Lease B. Assume production taxes are 5% and the RI on Lease A is a 1/6 RI.

a. Give the entry necessary to record the transfer of the gas.

b. Give the entry assuming 100 percent of the gas is recovered and sold at $$2.10/Mcf$.

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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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Deep Hole Oil Company used 100 Mcf of gas obtained from Lease A and valued at ($2.10/Mcf)

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Fundamentals Of Oil And Gas Accounting

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