Question
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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