Question
Assume the below data were available to the management of contractors group company in this agreement: $900,000 Property cost & Drilling cost $160,000 Completion cost
Assume the below data were available to the management of contractors’ group company in this agreement:
$900,000 | Property cost & Drilling cost |
$160,000 | Completion cost |
$ 19 | Lifting cost per bbl. |
12% | Royalty interest |
$69 | Selling price per bbl. |
2,000 bbl. per month |  Production |
Would an investment made in this property have been successful (commercially) assuming management or the investor a 48 -month payout?
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
