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The Oloibiri Field cost $640 million to develop, including all Exploration and Appraisal expenditure and pre-license costs. It is estimated that the field had, at
The Oloibiri Field cost $640 million to develop, including all Exploration and Appraisal expenditure and pre-license costs. It is estimated that the field had, at inception the following reserves:
- 240 million barrels of Proved Reserves
- 320 million barrels of Proved and Probable Reserves
- Production up to and including 31-12-2019 was 20 million barrels
Required:
- Calculate the DD&A rate per barrel on Unit of Production (UoP) basis. Use Proved Reserves as your reserve definition.
- Calculate the DD&A charge up to 31-12-2019.
- Calculate the DD&A rate per barrel on Unit of Production (UoP) basis. Use Proved plus Probable Reserves as your reserve definition.
- Calculate the DD&A charge up to 31-12-2020.
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