Question
Balance sheet data for Asteroid Oil as of 12/31/32 is as follows for Lease AC: Leasehold costs $825,000 Less: Accumulated DD&A ($300,000) Net leasehold costs
Balance sheet data for Asteroid Oil as of 12/31/32 is as follows for Lease AC:
Leasehold costs | $825,000 |
Less: Accumulated DD&A | ($300,000) |
Net leasehold costs | $525,000 |
Wells and related E&F—IDC | $3,900,000 |
Less: Accumulated DD&A—IDC | ($1,700,000) |
Net wells and related E&F—IDC | $2,200,000 |
Wells and related E&F—L&WE | $2,150,000 |
Less: Accumulated DD&A—L&WE | ($330,000) |
Net wells and related E&F—L&WE | $1,820,000 |
Asteroid’s activities during 2033 related to Lease AC were as follows:
Exploratory dry hole drilled | $975,000 |
Development dry hole drilled | $1,070,000 |
Tanks, separators, etc., installed | $400,000 |
Production | 390,000 bbl |
Proved reserves, 12/31/33 | 3,900,000 bbl |
Proved developed reserves, 12/31/33 | 3,600,000 bbl |
Requirement:
Calculate the Net Profit Margin for 2033.
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