This project will require the following: 1. Completion of the 6 GAAP audited disclosures from the set of data provided. Since the company has just started business and you are being asked to prepare the disclosures for the year ending 12/31/2018 or as of 12/31/2018 you will only have two years of data to present instead of the three year GAAP requirement. This is ok. You are free to copy the data provided to each disclosure spreadsheet, if you wish, or you can calculate across spreadsheets. Prepare the disclosures in a professional manner similar to the format presentation in real company 10-K's. You will loose points for sloppy presentation! Completion of the Results of Operations disclosure will require you to calculate income tax for each lease to arrive at the company's Income Tax Expense. 2. Calculation and analysis narrative of the listed upstream ratios from the 2019 10-K filing of Continental Resources. Download a copy of Continental's (CLR) 2019 10-K to complete this part of your project. Additional general instructions There are tabs created for each disclosure and your ratio analysis work. You are encouraged to include your work which should include using formulas in the spreadsheet. Partial credit may be given for incorrect final answers where all work is shown. This project will require the following: 1. Completion of the 6 GAAP audited disclosures from the set of data provided. Since the company has just started business and you are being asked to prepare the disclosures for the year ending 12/31/2018 or as of 12/31/2018 you will only have two years of data to present instead of the three year GAAP requirement. This is ok. You are free to copy the data provided to each disclosure spreadsheet, if you wish, or you can calculate across spreadsheets. Prepare the disclosures in a professional manner similar to the format presentation in real company 10-K's. You will loose points for sloppy presentation! Completion of the Results of Operations disclosure will require you to calculate income tax for each lease to arrive at the company's Income Tax Expense. 2. Calculation and analysis narrative of the listed upstream ratios from the 2019 10-K filing of Continental Resources. Download a copy of Continental's (CLR) 2019 10-K to complete this part of your project. Additional general instructions There are tabs created for each disclosure and your ratio analysis work. You are encouraged to include your work which should include using formulas in the spreadsheet. Partial credit may be given for incorrect final answers where all work is shown. 2021 Energy, a successful efforts company, began operations on January 1, 2017. The following facts relate to 2021's first two years of operations. All reserve and production quantities apply only to 2021's interest. Jupiter Lease 2018 Saturn Lease 2018 2019 2020 2019 2020 2017 2020 2017 $100,000 A $40,000 A 2017 $125,000 A $35,000 A Mercury Lease 2018 2019 $115,000 $45,000 Acquisition costs G&G costs Drilling costs: IDC Actual & estimated tangible development costs, bbl (A=actual; R=revised; E=estimated) Drilling results: PR estimate, bbl @12/31 (decreases by estimated production) $1,500,000 A 500,000 A $1,850,000 700,000 2017 $25,000 E 20,000 A $1,500,000 A $1,700,000 A 500,000 A 600,000 A DRY PR PR PR 2017 2018 150,000 E 100,000 E 95,000 R 52,000 E 50,000 R 6,000 E 10,000 R 40,000 E 145,000 E 145,000 E 80,000 E 2017 60,000 E 70,000 E 80,000 R 45,000 E 50,000 R 6,000 E 10,000 R 2018 40,000 E 110,000 E 70,000 E 5,000 E PDR, bbl @12/31 (decreases by estimated production and increases as a result of estimated development) Actual & estimated production of proved reserves, bbl (A=actual; R=revised; E=estimated) 2017 2018 50,000 E 45,000 A 48,000 E 45,000 R 46,000 E 40,000 R 60,000 A 40,000 E 70,000 A 65,000 E 65,000 E 2022 $15,000 F ..... $15,000 E $15,000 E .. ... $56 E Estimated decommissioning costs Market price of oil sold, bbl Price used in estimating reserves, bbl .......................................................................... Production cost of oil sold (includes severance tax) Production cost per barrel of oil sold Estimated future production costs based on year-end costs $15,000 F $48 A $52 E $108,000 A $12 . $125,000 E $50 A $55 E $600,000 A $10 A $54 A $59 F $630,000 A $9 A 2017 2018 $150,000 E $175,000 E $100,000 E $112,000 E $480,000 E $900,000 E $960,000 E 2017 $10 E $14 E $12 E Estimated current production costs/bbl Delay rental $12 E $15,000 A Saturn Lease 2019 Mercury Lease 2019 2017 2018 2020 2017 2018 2020 A 125000 ......... 35000 115000 45000 A A 1700000 A 1500000 500000 1850000 700000 A 600000 A DRY PR PR 40000 E 145000 E E =Z15-Z22 E =AB15-AD21 40000 E 110000 E 70000 E =AB18-AD21 60000 A 40000 E 70000 A A 65000 E 65000 A 54 A E 59 E 50 55 =+Q21*Q27 10 =Z21*727 A A A 9 A =S21*Q31 E =(715-221) *$2$31 E =(AB15-AB21) "$2$31 E 12 E 12 15000 A Proved developed and proved undeveloped reserves are as follows: Oil (MBbls) NGLs (MBbls) Gas (MMcf) Total (MBOE) 521,579 442,364 343,515 219,730 189,434 126,928 1,330,852 1,629,451 1,215,861 963,118 903,373 673,085 Proved Developed Reserves: December 31, 2018 December 31, 2017 December 31, 2016 Proved Undeveloped Reserves: December 31, 2018 December 31, 2017 December 31, 2016 43,431 40,525 34,681 21,184 21,063 10,013 127,722 122,429 48,868 85,902 81,993 52,840 Proved undeveloped reserves activity is as follows (in MBOE): Beginning proved undeveloped reserves Revisions of previous estimates Extensions and discoveries Transfers to proved developed Ending proved undeveloped reserves Year Ended December 31, 2018 81,993 1,590 23,045 (20,726) 85,902 Prepare the Proved Reserves Disclosure for 2021 Energy as of 12/31/2018. Prepare the Proved Reserves Disclosure for 2021 Energy as of 12/31/2018. Prepare the Capitalized Costs disclosure for 2021 Energy as of 12/31/2018. Prepare the Costs Incurred disclosure for 2021 Energy as of 12/31/2018. Prepare the Results of Operations disclosure for 2021 Energy as of 12/31/2018. Prepare the SMOG disclosure for 2021 Energy as of 12/31/2018. Prepare the Changes in SMOG disclosure for 2021 Energy as of 12/31/2018. Calculate the following ratios from Continental Resources 2019 10-K and answer the subsequent questions. Insert additional rows as needed From 2018 to 2019, is the ratio better or worse? In your own words, describe what may be the cause of either an improvement or a decline in the ratio. Ratio 2019 2018 Reserve Replacement Ratio Reserve Life Ratio Finding Costs per BOE Lifting Costs per BOE DD&A per BOE Value of PR Additions per BOE Value Added Ratio This project will require the following: 1. Completion of the 6 GAAP audited disclosures from the set of data provided. Since the company has just started business and you are being asked to prepare the disclosures for the year ending 12/31/2018 or as of 12/31/2018 you will only have two years of data to present instead of the three year GAAP requirement. This is ok. You are free to copy the data provided to each disclosure spreadsheet, if you wish, or you can calculate across spreadsheets. Prepare the disclosures in a professional manner similar to the format presentation in real company 10-K's. You will loose points for sloppy presentation! Completion of the Results of Operations disclosure will require you to calculate income tax for each lease to arrive at the company's Income Tax Expense. 2. Calculation and analysis narrative of the listed upstream ratios from the 2019 10-K filing of Continental Resources. Download a copy of Continental's (CLR) 2019 10-K to complete this part of your project. Additional general instructions There are tabs created for each disclosure and your ratio analysis work. You are encouraged to include your work which should include using formulas in the spreadsheet. Partial credit may be given for incorrect final answers where all work is shown. This project will require the following: 1. Completion of the 6 GAAP audited disclosures from the set of data provided. Since the company has just started business and you are being asked to prepare the disclosures for the year ending 12/31/2018 or as of 12/31/2018 you will only have two years of data to present instead of the three year GAAP requirement. This is ok. You are free to copy the data provided to each disclosure spreadsheet, if you wish, or you can calculate across spreadsheets. Prepare the disclosures in a professional manner similar to the format presentation in real company 10-K's. You will loose points for sloppy presentation! Completion of the Results of Operations disclosure will require you to calculate income tax for each lease to arrive at the company's Income Tax Expense. 2. Calculation and analysis narrative of the listed upstream ratios from the 2019 10-K filing of Continental Resources. Download a copy of Continental's (CLR) 2019 10-K to complete this part of your project. Additional general instructions There are tabs created for each disclosure and your ratio analysis work. You are encouraged to include your work which should include using formulas in the spreadsheet. Partial credit may be given for incorrect final answers where all work is shown. 2021 Energy, a successful efforts company, began operations on January 1, 2017. The following facts relate to 2021's first two years of operations. All reserve and production quantities apply only to 2021's interest. Jupiter Lease 2018 Saturn Lease 2018 2019 2020 2019 2020 2017 2020 2017 $100,000 A $40,000 A 2017 $125,000 A $35,000 A Mercury Lease 2018 2019 $115,000 $45,000 Acquisition costs G&G costs Drilling costs: IDC Actual & estimated tangible development costs, bbl (A=actual; R=revised; E=estimated) Drilling results: PR estimate, bbl @12/31 (decreases by estimated production) $1,500,000 A 500,000 A $1,850,000 700,000 2017 $25,000 E 20,000 A $1,500,000 A $1,700,000 A 500,000 A 600,000 A DRY PR PR PR 2017 2018 150,000 E 100,000 E 95,000 R 52,000 E 50,000 R 6,000 E 10,000 R 40,000 E 145,000 E 145,000 E 80,000 E 2017 60,000 E 70,000 E 80,000 R 45,000 E 50,000 R 6,000 E 10,000 R 2018 40,000 E 110,000 E 70,000 E 5,000 E PDR, bbl @12/31 (decreases by estimated production and increases as a result of estimated development) Actual & estimated production of proved reserves, bbl (A=actual; R=revised; E=estimated) 2017 2018 50,000 E 45,000 A 48,000 E 45,000 R 46,000 E 40,000 R 60,000 A 40,000 E 70,000 A 65,000 E 65,000 E 2022 $15,000 F ..... $15,000 E $15,000 E .. ... $56 E Estimated decommissioning costs Market price of oil sold, bbl Price used in estimating reserves, bbl .......................................................................... Production cost of oil sold (includes severance tax) Production cost per barrel of oil sold Estimated future production costs based on year-end costs $15,000 F $48 A $52 E $108,000 A $12 . $125,000 E $50 A $55 E $600,000 A $10 A $54 A $59 F $630,000 A $9 A 2017 2018 $150,000 E $175,000 E $100,000 E $112,000 E $480,000 E $900,000 E $960,000 E 2017 $10 E $14 E $12 E Estimated current production costs/bbl Delay rental $12 E $15,000 A Saturn Lease 2019 Mercury Lease 2019 2017 2018 2020 2017 2018 2020 A 125000 ......... 35000 115000 45000 A A 1700000 A 1500000 500000 1850000 700000 A 600000 A DRY PR PR 40000 E 145000 E E =Z15-Z22 E =AB15-AD21 40000 E 110000 E 70000 E =AB18-AD21 60000 A 40000 E 70000 A A 65000 E 65000 A 54 A E 59 E 50 55 =+Q21*Q27 10 =Z21*727 A A A 9 A =S21*Q31 E =(715-221) *$2$31 E =(AB15-AB21) "$2$31 E 12 E 12 15000 A Proved developed and proved undeveloped reserves are as follows: Oil (MBbls) NGLs (MBbls) Gas (MMcf) Total (MBOE) 521,579 442,364 343,515 219,730 189,434 126,928 1,330,852 1,629,451 1,215,861 963,118 903,373 673,085 Proved Developed Reserves: December 31, 2018 December 31, 2017 December 31, 2016 Proved Undeveloped Reserves: December 31, 2018 December 31, 2017 December 31, 2016 43,431 40,525 34,681 21,184 21,063 10,013 127,722 122,429 48,868 85,902 81,993 52,840 Proved undeveloped reserves activity is as follows (in MBOE): Beginning proved undeveloped reserves Revisions of previous estimates Extensions and discoveries Transfers to proved developed Ending proved undeveloped reserves Year Ended December 31, 2018 81,993 1,590 23,045 (20,726) 85,902 Prepare the Proved Reserves Disclosure for 2021 Energy as of 12/31/2018. Prepare the Proved Reserves Disclosure for 2021 Energy as of 12/31/2018. Prepare the Capitalized Costs disclosure for 2021 Energy as of 12/31/2018. Prepare the Costs Incurred disclosure for 2021 Energy as of 12/31/2018. Prepare the Results of Operations disclosure for 2021 Energy as of 12/31/2018. Prepare the SMOG disclosure for 2021 Energy as of 12/31/2018. Prepare the Changes in SMOG disclosure for 2021 Energy as of 12/31/2018. Calculate the following ratios from Continental Resources 2019 10-K and answer the subsequent questions. Insert additional rows as needed From 2018 to 2019, is the ratio better or worse? In your own words, describe what may be the cause of either an improvement or a decline in the ratio. Ratio 2019 2018 Reserve Replacement Ratio Reserve Life Ratio Finding Costs per BOE Lifting Costs per BOE DD&A per BOE Value of PR Additions per BOE Value Added Ratio