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

تمرين 25

Yale Oil Company owns the working interest in a small lease in Louisiana that has a
1/6 royalty interest. The royalty interest owner is Mr. Bell. Yale also owns the working
interest in numerous leases in Texas. Not having the facilities in Louisiana to develop
the Louisiana lease, Yale assigns his entire working interest in the lease to Smith for a
consideration of $300,000, and retains a 1/15 overriding royalty. Assuming revenues
of $42,000 and costs of $12,000 the first year of operations, determine how much
each economic interest owner will receive in revenue and pay in costs the first year
of operations.