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Two leases in Eastern Wyoming are being combined to form the Eastern Field Unit. Lease WI RI Acreage Contributed Estimated Net Recoverable bbls Lease 1

Two leases in Eastern Wyoming are being combined to form the Eastern Field Unit.

Lease

WI

RI

Acreage Contributed

Estimated Net Recoverable bbls

Lease 1

100% Mountain Company

1/6 Jane Smith, 1/8 Alan Green

400 acres

180,000 bbls

Lease 2

60% River Corp, 40% Hilltop

1/5 Karen White

250 acres

220,000 bbls

Requirement:
 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 30% and the net recoverable barrels weighted 70%.

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