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Two leases in Western Canada are being combined to form the West Unit. Lease 1: WI: 100% Maple Corp. RI: 1/6 Thomas Green 1/8 Laura

Two leases in Western Canada are being combined to form the West Unit.

  • Lease 1:
     WI: 100% Maple Corp.
     RI: 1/6 Thomas Green
     1/8 Laura Jones
     Acreage contributed: 500 acres
     Estimated net recoverable bbls: 220,000 bbls
  • Lease 2:
     WI: 65% Pine Ltd
     35% Birch Enterprises
     RI: 1/3 Charles Black
     Acreage contributed: 300 acres
     Estimated net recoverable bbls: 250,000 bbls
Requirement:
 a. Determine the participation factors for each party based on the acreage contributed.
 b. Determine the participation factors for each party based on the net recoverable barrels contributed.
 c. Determine the participation factors for each party based on the acreage contributed weighted 50% and the net recoverable barrels weighted 50%.

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