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

Exercise 14

Jayhawk Oil Company's production for Lease A and Lease B is gathered into a
common system and sold. Total sales for the month are 6,562 barrels. Assume the
following data for Lease A and Lease B: Measured production is 3,300 barrels from Lease A and 3,500 barrels from Lease B.
REqUIRED:
a. Allocate production to each lease.
b. Allocate the amounts per lease determined in part a to the wells. Round the ratios
to four decimal places.