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(successful efforts) Using BOE: a) Calculate DD&A for 2019. b) Calculate DD&A for 2019, assuming that part of the field, a proved property with gross
(successful efforts)
Using BOE:
a) Calculate DD&A for 2019.
b) Calculate DD&A for 2019, assuming that part of the field, a proved property with gross acquisition costs of $30,000, gross equipment cost of $70,000, and gross IDC of $215,000, was abandoned during 2019.
14. Taft Oil Company computes DD&A on a field-wide basis. Balance sheet data as of 12/31/18 for Taft's West Texas field are as follows: Unproved properties, net of impairment.. $ 200,000 Proved properties .. $ 500,000 Less: Accumulated DD&A. (100,000) Net proved properties... 400,000 Wells and equipmentIDC. 3,000,000 Wells and equipment-L&WE. 1,400,000 Less: Accumulated DD&A-Wells. (1,300,000) Net wells and equipment ..... $3,100,000 Taft's activities during 2019 were as follows: Unproved properties acquired .. $ 35,000 Delay rentals paid on unproved properties 10,000 Test-well contributions paid on unproved properties 20,000 Title exams paid on unproved property... 8,000 Title defenses paid... 15,000 Unproved properties proved during 2019, net of impairment.. 50,000 Exploratory dry hole drilled...... 275,000 Successful exploratory well drilled. 400,000 Development dry hole drilled 300,000 Service well ...... 325,000 Tanks, separators, etc., installed.. 125,000 Development well, in progress 12/31/19. 140,000 Oil (bbl) Gas (Mcf) Production 100,000 500,000 Proved reserves, 12/31/19 1,020,000 5,000,000 Proved developed reserves, 12/31/19 900,000 4,700,000 14. Taft Oil Company computes DD&A on a field-wide basis. Balance sheet data as of 12/31/18 for Taft's West Texas field are as follows: Unproved properties, net of impairment.. $ 200,000 Proved properties .. $ 500,000 Less: Accumulated DD&A. (100,000) Net proved properties... 400,000 Wells and equipmentIDC. 3,000,000 Wells and equipment-L&WE. 1,400,000 Less: Accumulated DD&A-Wells. (1,300,000) Net wells and equipment ..... $3,100,000 Taft's activities during 2019 were as follows: Unproved properties acquired .. $ 35,000 Delay rentals paid on unproved properties 10,000 Test-well contributions paid on unproved properties 20,000 Title exams paid on unproved property... 8,000 Title defenses paid... 15,000 Unproved properties proved during 2019, net of impairment.. 50,000 Exploratory dry hole drilled...... 275,000 Successful exploratory well drilled. 400,000 Development dry hole drilled 300,000 Service well ...... 325,000 Tanks, separators, etc., installed.. 125,000 Development well, in progress 12/31/19. 140,000 Oil (bbl) Gas (Mcf) Production 100,000 500,000 Proved reserves, 12/31/19 1,020,000 5,000,000 Proved developed reserves, 12/31/19 900,000 4,700,000Step by Step Solution
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