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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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