Two leases in Eastern Nevada are being combined to form the East End Unit. Lease WI RI
Fantastic news! We've Found the answer you've been seeking!
Question:
Two leases in Eastern Nevada are being combined to form the East End Unit.
Lease | WI | RI | Acreage Contributed | Estimated Net Recoverable bbls |
Lease 1 | 100% Desert Oil Co. | 1/9 John Brown, 1/10 Jane Black | 550 acres | 260,000 bbls |
Lease 2 | 70% Canyon Oil Ltd, 30% River Sands Inc | 1/4 Sam White | 400 acres | 320,000 bbls |
a. Determine the participation factors for each party assuming the participation factors are based on the acreage contributed.
b. Determine the participation factors for each party assuming the participation factors are based on the net recoverable barrels contributed.
c. Determine the participation factors for each party assuming the participation factors are based on the acreage contributed weighted 40% and the net recoverable barrels weighted 60%.
Posted Date: