exploration cost first no. is 2

10 Assignment- No:ol. Natural Resouces and Depletisi Chevron oil company ecos) is exploring and producing heavy oil in oman. The estoniated available barvels in The resordiono g. The oil field is around. 410,000,000 barrels. The estimated economie Life of the oil field is years. The exploration cost (Ec) is * 9, 100, 9,000,000 which accounts for 15 pereent of The total cast and residual value of 10 percent. The extraction of oil propected to be 14% annually for the 1st 4 yeas and 15% for the years( 676 and 7) annually provided thal. the field will develop by 1% in year 7. Required: (A) Find out the depletian Base CDB) Depletion Rate CDR) and 7 depelion amount on annual bans. produce a Depletion schedule. is (BJ what would be the case if the oil field by act of nature witnesses development in year 8. (Assune 2o percent. Equations: DR = Costa Residual value DR -cost Avalate Est. Uniks 10 Assignment- No:ol. Natural Resouces and Depletisi Chevron oil company ecos) is exploring and producing heavy oil in oman. The estoniated available barvels in The resordiono g. The oil field is around. 410,000,000 barrels. The estimated economie Life of the oil field is years. The exploration cost (Ec) is * 9, 100, 9,000,000 which accounts for 15 pereent of The total cast and residual value of 10 percent. The extraction of oil propected to be 14% annually for the 1st 4 yeas and 15% for the years( 676 and 7) annually provided thal. the field will develop by 1% in year 7. Required: (A) Find out the depletian Base CDB) Depletion Rate CDR) and 7 depelion amount on annual bans. produce a Depletion schedule. is (BJ what would be the case if the oil field by act of nature witnesses development in year 8. (Assune 2o percent. Equations: DR = Costa Residual value DR -cost Avalate Est. Uniks