ABC Oil Company has the following information with respect to its producing oil and gas...
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Accounting
ABC Oil Company has the following information with respect to its producing oil and gas lease as of January 1, 2013.
Proved property IDC Equipment
Asset: 200,000 1,400,000 60,000
Accum. DD&A (30,000) (300,000) (260,000)
Net carrying Value 170,000 1,100,000 340,000
Estimated proved reserves 1/1/2013 Oil =120,000 bbl and gas = 300,000 mcf
Estimated proved developed reserves 1/1/2013 Oil =60,000 bbl and gas = 120,000 mcf
During January 2013, the lease produced 500 barrels of oil and 840 mcf of gas.
What is the total DD&A per BOE for proved property cost?
What is the DD&A per BOE for IDC and equipment
On February 1, 2013 , a new reserve report showed the following
Estimated proved reserves 1/1/2013 Oil =140,000 bbl and gas = 330,000 mcf
Estimated proved developed reserves 1/1/2013 Oil =65,000 bbl and gas = 126,000 mcf
If ABC Oil Company only changes DD&A prospectively, compute the new DD&A per BOE for February
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