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Two leases in far West Texas are being combined to form the West End Unit. Lease 1 WI: 100% Jerkin Company RI: 1/7 Sam Sofer

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Two leases in far West Texas are being combined to form the West End Unit. Lease 1 WI: 100% Jerkin Company RI: 1/7 Sam Sofer 177 John Hill Acreage contributed: Estimated net recoverable bbl: 150,000 bbl 300 acres Lease 2 WI: 75% 25% RI: 1/8 Acreage contributed: Estimated net recoverable bbl: Abram Company Ettom Company E.B. Little 200 acres 250,000 bbl REQUIRED: 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 being weighted 40% and the net recoverable barrels being weighted 60%

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