Mabel Oil Company owns 100% of the WI in a lease that has a 1/7 RI. Needing
Question:
Mabel Oil Company owns 100% of the WI in a lease that has a 1/7 RI. Needing additional funds to develop the property, Mabel sold Pitt Company 60,000 barrels of oil for a consideration of \($800,000\). The oil is to be paid out of the first 20% of the WI’s share of production. During the first four years of production, 140,000 barrels are produced each year. How many barrels of oil does each interest receive in each of the first four years?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
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
Question Posted: