Mabel Oil Company owns 100% of the WI in a lease that has a 1/7 RI. Needing

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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?

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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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