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

تمرين 23

Hays, Bush, and King signed a lease agreement with Big Pink, the owner of the mineral
rights. Big Pink received a 1/7 royalty interest. The companies' working interests are
50%, 30%, and 20%, respectively. The companies signed an operating agreement
designating Hays as the operator of the lease. Assuming revenues of $42,000 and costs
of $14,000 the first year of operations, determine how much each party will receive in
revenue and pay in costs the first year of operations.