Could you please help me out

1. Give a brief explanation of how exploration costs are handled under Full Costing (FC) versus Successful Efforts (SE). 2. Hard Luck Oil Company agreed to conduct G&G studies and other exploration activities on a Lease owned by Falcon Oil Company in exchange for an interest in the property if proved reserves are found. If proved reserves are not found, Hard Luck will be reimbursed for the costs incurred. Both Hard Luck and Falcon use The Successful efforts method of accounting. -Hard Luck incurs $200,000 of Exploration costs. -Assume Reserves are found. -Assume instead that reserves are not found. Give any entries required for Hard Luck. 3. Dino Oil Company entered into two test well contribution agreements as follows: 1.On May 17, 2004, a bottom-hole agreement was obtained requiring a payment of $45,000 when the contract depth of 10,000 feet was reached. The contract depth was reached on September 21, 2004 and the required payment was made. 2.On September 30, 2004, a dry hole test-well contribution was entered into requiring payment of $50,000 if the well was dry, but no payment if the well was successful. The well was successful. Prepare any necessary entries for the above transactions 4. Cardinal Company has the following groups of insignificant leases at 12/31/05. Total Costs Total allowance for impairment 12/31/05 Expected average percentage of impairment Group A $200,000 40,000 Group B $300,000 0 Group C $400,000 30,000 60% 70% 65% Prepare the Journal Entries to record the impairment for each of the groups at 12/31/05. 5. During the calendar year, 2005 Gonzales Company had the following transactions on an unproved property: 1. Drilled Morgan #1 with IDC costs of $310,000 and equipment cost of $42,000 2. The well was determined to be dry and was plugged and abandoned at a cost of $10,000. Salvaged equipment placed in inventory was valued at $8.000. Prepare journal entries for the transactions 6. Arbusto Oil Company acquired a lease on October 15, 2005 for $200,000 cash. No drilling was done on the lease during the first year. Since Arbusto wixhed to retain the lease a delay rental of $10,000 was paid on October 15,2006. During November and December of 2006, three dry holes were drilled on surrounding leases. Based on the dry holes, Arbusto's management decided the lease was 75% impaired. Arbusto had still not started drilling operations by the end of the second year and so paid a second delay rental. During November 2007, with less than one year of the primary term left, Arbusto drilled a dry hole on the lease and decided to abandon the leas. Because of the end of Arbusto's accounting period is December 31 and for income tax purposes, Arbusto executed a quit claim deed (surrendered the lease) and relinquished all rights to the lease the last day of November 2007. Give the entries. 7. Both oil and gas are produced from Inferno Company's lease in Texas. Additional information, 1/1/07: Unrecovered IDC -------------------------$900,000 Proved Property costs ----------------------100,000 L&W equipment, gross ---------------------300,000 Accumulated DD&A (beginning of 2006)-----50,000 Estimated Proved Reserves 12/31/07 Oil--------------------------------200,000 bbl Gas-----------------------------1,000,000 Mcf Production during 2007 Oil---------------------------------10,000 bbl Gas-------------------------------300,000 Mcf Assuming the lease is fully developed compute the amortization 1.Using a common unit of measure based on BOE. 8. Spartan Oil Company drilled its first successful well on Lease A in 2006. Data for lease A as of 12/31/06 are as follows: Leasehold costs --------------$ 50,000 IDC of Well ------------------- 200,000 L&W equipment ----------------75,000 Production during 2006 -------------------------------- 8,000 bbl Total Estimated proved reserves 12/31/06----------- 792,000 bbl Total reserves recoverable from well 12/31/06 -------102,000 bbl Compute the amortization for 2006 9. Briefly explain why oil is found in sedimentary basins under the geological theory of oil. 10. Briefly explain the concept of \"Peak Oil\" also known as \"Hubbert's Peak.\" 11. Explain the terms porosity and permeability. 12. What was Col. Drakes technological contribution to drilling oil? 13. What caused the early wells around Titusville to clog, what methods were used to attempt to clear/prevent the clogging? 14. Modern Rotary rigs use mud in the drilling process, what is the purpose(s) of the mud