Mr. Salah-Edin owns the mineral interests in some land in Kuwait. During 2022, he leases the land to Al-Salam Oil Co., reserving a 1/7 royalty interest. (1) Lacking the funds to develop the lease, Al-Salam Oil Co. assigns an ORI (by retaining) to Mr. Fahd reserving 1/8 of production. (2) Lacking the funds to develop the lease, the working interest assigns a PPI (by carved-out) to Mr. Aly as of 1/5. (3) Lacking experience and management skills the Working Interest assigns to Mr. Bader a joint working interest as 2/3 after giving consideration to all the above assignments. During 2022, a successful well was drilled, and 140,000 barrels of oil were produced and sold. During the year development and operation costs totaled $150,000 divided between the appropriate parties based upon number of barrels received. Required: 1. Present the above assignments in a flowchart according to the concession agreement? 2. Prepare a table to show the share of each economic party and how much of the costs each party will pay.

Mr. Salab-Edin ewns the mineral interests is vene land in Keweit. Daring 2onz, le lewes the land to Al-Salam Oil Co, reserving a 1/7 reyality inierest. (1) Lacking the fundu te develop the lease, Alsalam Oil Ce. assiges an orel foy retaining) te Mr. Fahd reservine is af prodection. (2) Lacking the fundo to decklep the lease, the working interest avighe a FH ofy carved-out) to Mr. Ahy as ef is. (3) Lacking experirnce and management skilb the Werking teterest atuites to Mr. mitaments. During 2022, a vecenful well was drilled, and 14a,aes harrels of eil wert predaced and sold. Doring the year development and eperation costs totaled \$1S0,060 dinided berewe the apprepriate parties based upen number of barrels recrived. Borwired: arecenew? the cests each party will pay