Dube Companys production from each well on Lease C and Lease D is estimated based on a
Question:
Dube Company’s production from each well on Lease C and Lease D is estimated based on a 24-hour test. Oil produced from each well on each lease is commingled and measured before leaving each lease. The oil produced from each lease is then commingled and delivered to a central tank battery. Assume the following data for Lease C:
Measured production from Lease C is 2,000 barrels and 2,280 barrels from Lease D.
After treatment at the central tank battery, 4,100 barrels are sold.
REQUIRED:
Allocate the 4,100 barrels sold to each lease and then to each well in a two-stage allocation. Round ratios to three decimal places.
Step by Step Answer:
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