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

Exercise 16

Kyle Company's production from each well on Lease C and Lease D is estimated
based on a 24-hour test. Oil produced from each well on each lease is commingled
and measured before leaving each lease. The oil produced from each lease is then
commingled and delivered to a central tank battery. Assume the following data
for Lease C: Measured production is 2,000 barrels from Lease C and 2,280 barrels from Lease D.
After treatment at the central tank battery, 4,100 barrels are sold.
REqUIRED: Allocate the 4,100 barrels sold to each lease and then to each well in a
two-stage allocation. Round the ratios to three decimal places.