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XYZ Oil and Gas had the following sales volumes and product prices in 2016: Oil 5000 BBL $45.00 per Bbl Dry Gas 50000 MCF $3.00

XYZ Oil and Gas had the following sales volumes and product prices in 2016:

Oil

5000

BBL

$45.00

per Bbl

Dry Gas

50000

MCF

$3.00

per Mcf

NGL's

4500

BBL

$12.00

per Bbl

A) What is XYZ Oil and Gas 2016 average product price on a $/BOE basis?

B) If the wet gas shrinkage is 25% and GGT&P (Gas Gathering, Transportation, & Processing) cost was $60,000 in 2016, what was the GGT&P cost per wet gas mcf.

C) XYZ's OPEX for 2016 was $140,000 and their severance tax rates were 7.5% for natural gas and natural gas liquids and 4.6% on crude oil. Calculate the operating margin per BOE based on the information provided in this problem.

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