Gusher Oil Companys production for Leases A and B is gathered into a common system and sold.

Question:

Gusher Oil Company’s production for Leases A and B is gathered into a common system and sold. Total Sales for the month are 6,562 barrels. Assume the following data for Leases A and B:

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Measured production from Lease A is 3,300 barrels and 3,500 barrels from Lease B.

REQUIRED:

a. Allocate production to Leases A and B.

b. Allocate amounts per lease determined in part a to the wells. Round ratios to four decimal places.

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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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Gusher Oil Companys production for Leases A and B is gathered into a common system and sold.

Question:

Lease A: Well 24 hour Test, bbl Days Produced 123 40 24 30 30 3 50 28 Lease B: 1 2 80 50 30 80 24

Step by Step Answer:

Fundamentals Of Oil And Gas Accounting

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