Fundamentals of Oil & Gas Accounting 5th Edition by Rebecca Gallun, Charlotte Wright

تمرين 10

Ms. Kyle owns some mineral rights in Texas that she leases to Seagull Oil Company,
reserving a 1/8 royalty interest. During 2011, Seagull Oil made the following
assignments:
a. To Mr. Hall, an ORI of 1/6
b. To Mr. Clark, a production payment interest of 10,000 barrels of oil to be paid out
of 1/5 of the working interest's share of production
c. To Ms. Wilson, a joint working interest of 40% after giving consideration to the
above assignments
REqUIRED:
a. Prepare the decimals to be used in the division order.
b. Assuming production of 12,000 (gross) barrels of oil, calculate the number of
barrels each owner would receive.