Looking for some help with an analysis of the financial ratios for my oil and gas accounting class. I've completed all of the calculations and just need some help with analyzing the data. If you are inexperienced in oil and gas accounting, please do not accept this question. I only need about a paragraph (or less) for each ratio. It should describe the assessment of the performance and future potential based on my calculations provided in the pdf. Thank you!!!

Oil Beginning of Year Revisions of Previous Estimates Improved Recovery Purchases of reserves in place Sales of reserves in place Extensions & discoveries Production End of year 2015 Gas 171 10 21 0 -12 69 -25 234 BOE Beginning of Year Revisions of Previous Estimates Improved Recovery Purchases of reserves in place Sales of reserves in place Extensions & discoveries Production End of year Unproved property acquistion Proved Property acquisition G&G Exploratory drilling (including dry hole) Development drilling Net Wells Gross Wells Lifting Costs DD&A 779 12 30 -12 78 -104 783 Mcfe 301 12 26 0 -14 82 -42 365 $ $ $ $ $ Oil BOE 1805 72 156 0 -84 492 -254 2187 405 500 221 50 $ $ $ $ $ Reserve Replacement 13a E&D + IR/Prod 13a E&D + IR+Revisions/Prod 13a E&D + IR+Revisions+Purchases/Prod +Sales 211 500 90 100 100 13b Reserve Life Beginning Proved Reserves/Prod 13c Net Wells to Gross Wells Net Wells/Gross Wells BOE 2187 121 173 84 -219 582 -194 2734 200 500 650 700 90 Mcfe 456 -7 23 4 -74 31 -37 396 $ $ $ $ $ 2734 -44 140 24 -444 186 -220 2376 800 350 425 650 300 900 2050 $ $ 183 525 $ $ $ $ $ $ $ $ $ 643 550 156 180 310 (35) (398) 250 1,656 $ $ $ $ $ $ $ $ $ 1,656 200 139 712 39 (40) (500) 199 2,405 115 130 142 65 96 108 2016 Gas Oil 724 22 50 24 -24 150 -76 870 21 10 10 200 222 246 2017 Gas Oil 3.600 4.000 2.703 1.038 1.154 1.034 5.476 6.190 3.463 0.956 1.412 0.647 0.875 0.417 0.106 2.632 2.921 2.460 6.84 7.49 11.14 11.51 13.96 9.53 BOE 13e Average Daily Production per Well Annual production/365/Net Wells -70 6 -24 251 226 450 37.31% 13d Average Reserves per Well Beginning Proved Reserves/Net Wells 2017 Gas 335 -11 15 $ $ 108 120 120 2015 Gas Oil 783 31 23 12 -99 42 -68 724 840 1910 Beginning Balance $ 1,131 Changes due to price and costs $ (830) Changes due to purchases in place $ Changes due to extensions, discoveries, and improved $ recovery 400 Changes due to revision in estimates $ 99 Changes due to sales in place $ (22) Changes due to production $ (270) Accretion of discount $ 135 Ending Balance $ 643 E&D + IR E&D + IR+Revisions E&D + IR+Revisions+Purchases Oil Mcfe 365 20 29 14 -37 97 -32 456 750 2010 $ $ 2016 Gas 234 15 25 12 -20 90 -21 335 43.98% Mcfe BOE 43.90% Mcfe BOE Mcfe 228.00 401.11 1,038.67 2,406.67 278.57 433.93 932.14 2,603.57 372.22 506.30 804.44 3,037.78 0.0913 0.1546 0.3799 0.9279 0.0685 0.1055 0.2218 0.6327 0.0731 0.1116 0.2314 0.6697 14 Finding Costs per BOE Formula 1 w/o Revisions Formula 1 w/ Revisions Formula 2 w/o Revisions Formula 2 w/ Revisions Formula 3 $ $ $ $ $ 8.793 7.670 8.793 7.670 9.800 $ $ $ $ $ 13.918 11.522 16.667 14.104 13.375 $ $ $ $ $ 34.677 45.423 40.714 51.506 49.510 15a Lifting Costs per BOE 15b DD&A per BOE $ $ 4.984 11.811 $ $ 6.990 13.918 $ $ 4.991 14.318 16a Value of proved reserve additions per BOE Formula 1 w/o Revisions Formula 1 w/ Revisions Formula 2 w/o Revisions Formula 2 w/ Revisions $ $ $ $ 3.704 4.158 3.704 4.158 $ $ $ $ 1.430 3.356 2.403 4.038 $ $ $ $ 13.104 15.979 14.589 17.451 16b Value Added Ratio $ 0.424 $ 0.302 $ 0.352 Extensions & Discoveries + Improved Recovery Production Extensions & Discoveries + Improved Recovery + Revisions in Previous Estimates Production Extensions & Discoveries + Improved Recovery + Revisions in Previous Estimates + Purchases of Reserves in Place Production + Sales of Reserves in Place Total Proved Reserves at Beginning of Year Production Net Wells Gross Wells Total Proved Reserves at Beginning of Year Net Wells Annual Production/365 Net Wells G&G Exploration Costs + All Exploratory Drilling Costs Extensions & Discoveries G&G Exploration Costs + All Exploratory Drilling Costs Extensions & Discoveries + Revisions in Previous Estimates G&G Exploration Costs + All Exploratory Drilling Costs + Proved Properties Extensions & Discoveries + Purchased Reserves in Place G&G Exploration Costs + All Exploratory Drilling Costs + Proved Properties Extensions & Discoveries + Purchased Reserves in Place + Revisions in Previous Estimates G&G Exploration Costs + All Exploratory & Development Drilling Costs + Proved and Unproved Property Acquisition Costs Extensions & Discoveries + Purchased Reserves in Place + Revisions in Previous Estimates Total Annual Lifting Costs Annual Production (BOE) Total Annual DD&A Annual Production (BOE) Changes Due to Extenstions, Discoveries, and Improved Recovery Extensions & Discoveries + Improved Recovery Changes Due to Extenstions, Discoveries, and Improved Recovery + Changes Due to Revisions in Estimates Extensions & Discoveries + Improved Recovery + Revisions in Previous Estimates Changes Due to Extenstions, Discoveries, and Improved Recovery + Changes Due to Purchases of Reserves in Place Extensions & Discoveries + Improved Recovery + Purchases of Reserves in Place Changes Due to Extenstions, Discoveries, and Improved Recovery + Changes Due to Purchases of Reserves in Place + Changes Due to Revisions in Estimates Extensions & Discoveries + Improved Recovery + Purchases of Reserves in Place + Revisions in Previous Estimates G&G Exploration Costs + All Exploratory & Development Drilling Costs + Proved and Unproved Property Acquisition Costs Extensions & Discoveries + Purchased Reserves in Place + Revisions in Previous Estimates Changes Due to Extenstions, Discoveries, and Improved Recovery + Changes Due to Purchases of Reserves in Place + Changes Due to Revisions in Estimates Extensions & Discoveries + Improved Recovery + Purchases of Reserves in Place + Revisions in Previous Estimates Value of Proved Reserve Additions/BOE Finding Costs/BOE Each of the bolded ratios below will need to be discussed for the assignment; at least a paragraph or a couple of sentences that analyze the financial calculations. I've provided additional information for each of the required ratio discussions to better assist with the assignment. In addition to background information on the ratios, I've also included questions 13-16 for your reference. Do not answer these questions as I have already completed that portion of the assignment. I just figured it would be useful to understand where my calculations came from. Reserve Replacement This ratio measures a company's success in replacing production and accordingly measures a company's ability to continue to operate in the future. The primary means by which reserves can be replaced are by discoveries, extensions, in place purchases and revisions. A firm that is not replacing the reserves it produces will ultimately deplete its pool of available reserves and be forced to either purchase reserves in place or simply cease to do business. Reserve Life The reserve life ratio is used to approximate or measure the number of years that production could continue at the current rate if no new reserves were added. The higher the reserve life ratio, the longer a firm could continue to generate enough cash flow to cover its financial obligations even if it curtailed exploration and discovery activities - assuming current production generates enough cash flow to cover financial obligations. This ratio measures a company's success in replacing production and accordingly measures a company's ability to continue to operate in the future. Net Wells to Gross Wells The ratio of net wells to gross wells is used as a gauge of future profitability. The rationale is that if a company owns a large interest in each well, the company is likely to be the operator, benefit from being the operator, and as the operator, have a greater say in operations. A high ratio indicates that a company owns relatively large working interest in well. Average Reserves per Well Average reserves per well measures a company's future profitability. It is computed by dividing the total proved reserves at the beginning of the year by the number of net wells. Company L has both oil and gas reserves and oil is measured in barrels while gas is measured in millions of cubic feet. Therefore, average reserves per well ratio will be computed by converting the reserves to a common unit of measure that is barrels of energy (BOE). 1 barrel of oil = 6 Mcf of gas And, 1 Mcf of gas= 1,000 cubic feet of gas Therefore, Total proved reserves at beginning of year for gas will first be divided by 1,000 to convert them into Mcf and then again divided by 6 to convert them into barrels. Or simply, divide the total proved reserves at beginning of year for gas by 6,000 to convert them into barrels. Average Daily Production per Well Average daily production per well is a measure of the company's profitability. It is computed by first dividing the annual production by 365 and then again dividing the quotient by net wells. Company L has both oil and gas reserves and oil is measured in barrels while gas is measured in millions of cubic feet. Therefore, average reserves per well ratio will be computed by converting the reserves to a common unit of measure that is barrels of energy (BOE). Divide the annual production of gas by 6,000 to convert them into barrels. Finding Costs per BOE Lifting Costs per BOE Lifting cost per BOE is a very popular performance indicator. It measures the efficiency of the company getting oil and gas out of the ground or is used to evaluate the extent to which a company is controlling its operating costs. DD&A per BOE DD&A reflects the historical cost of finding and developing reserves and, as such, relates to DD&A prior periods, while lifting costs relate to the current period. Value of proved reserve additions per BOE Some reserves are of high quality i.e. they require relatively less in production, transportation and refining costs. In contrast the production of other reserves requires extensive expenditures for lifting, transportation or refining. Value of proved reserve additions ratio has become a popular means of incorporating reserve value. The calculation of value of proved reserve additions per BOE requires consistency between the value figures included in the numerator and the reserve categories included in the denominator. Value Added Ratio The value added ratio is computed by dividing the value of proved reserve additions per BOE ratio by the finding costs per BOE ratio. Companies should strive to maximize the value added ratio. Companies having the highest value added ratio are adding maximum reserve value at minimum finding costs. The objective of this analysis is to compare the cost of finding reserves with the value added by those reserves. Obviously such a comparison requires consistent use of costs and reserve categories in each formula