Question
Two leases in Southern Alberta are being combined to form the South Field Unit. Lease WI RI Acreage Contributed Estimated Net Recoverable bbls Lease 1
Two leases in Southern Alberta are being combined to form the South Field Unit.
Lease | WI | RI | Acreage Contributed | Estimated Net Recoverable bbls |
Lease 1 | 100% Prairie Oil Co. | 1/7 David Black, 1/8 Sarah Green | 1,150 acres | 450,000 bbls |
Lease 2 | 75% Canyon Sands Ltd, 25% River Oil Inc | 1/4 Mark White | 750 acres | 520,000 bbls |
Requirement:
a. Calculate the participation factors for each party based on the acreage contributed.
b. Calculate the participation factors for each party based on the net recoverable barrels contributed.
c. Calculate the participation factors for each party based on the acreage contributed weighted 50% and the net recoverable barrels weighted 50%.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started