Question
Balance sheet data for Geyser Energy as of 12/31/27 is as follows for Lease X: Leasehold costs $700,000 Less: Accumulated DD&A ($250,000) Net leasehold costs
Balance sheet data for Geyser Energy as of 12/31/27 is as follows for Lease X:
Leasehold costs | $700,000 |
Less: Accumulated DD&A | ($250,000) |
Net leasehold costs | $450,000 |
Wells and related E&F—IDC | $3,400,000 |
Less: Accumulated DD&A—IDC | ($1,450,000) |
Net wells and related E&F—IDC | $1,950,000 |
Wells and related E&F—L&WE | $1,900,000 |
Less: Accumulated DD&A—L&WE | ($280,000) |
Net wells and related E&F—L&WE | $1,620,000 |
Geyser’s activities during 2028 related to Lease X were as follows:
Exploratory dry hole drilled | $850,000 |
Development dry hole drilled | $920,000 |
Tanks, separators, etc., installed | $350,000 |
Production | 340,000 bbl |
Proved reserves, 12/31/28 | 3,400,000 bbl |
Proved developed reserves, 12/31/28 | 3,100,000 bbl |
Requirement:
Calculate the Total Debt for 2028.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started