Question 11 Exploration costs include: o all of the costs O dry and bottom-hole contributions O costs of carrying and retaining undevelopped properties O G&G costs Moving to another question will save this response. Question 12 Production equipment under both SE and FC methods are: O Recorded first as "unproved property" and then converted into "proved property" Capitalized only if this is the first well for the company O Capitalized and subjected to depreciation Expensed as incurred Moving to another question will save this response. Question 14 Steps in finding oil and gas includes: O G&G studies Selecting the drilling site O Leasing the mineral interest O All of the above Moving to another question will save this response. Question 15 Royalty payment is: O the cash paid to the owner of surface rights O the cash or kind paid to the owner of mineral rights O cash paid to the production interest O the cash paid to the overriding interest