Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. missy gaines owns the mineral rights in land in ok

Missy Gaines owns the mineral rights in land in Oklahoma, which she leased to Drill...

80.2K

Verified Solution

Question

Accounting

Missy Gaines owns the mineral rights in land in Oklahoma, which she leased to Drill Quick Oil & Gas. In that agreement, Missy received a 25% royalty interest. Later, Drill Quick Oil & Gas entered into a sales contract where it sold 40% of its working interest to Time Wise Company. In 2019, total proved reserves for the property are estimated to be 1,000,000 barrels, and total production during 2019 was 100,000 barrels. Under this agreement, royalty is payable to Missy Gaines in cash.

REQUIRED: Determination of proved reserves to be included in the reserve report.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Operations Management
1.2K views

1.What is Information Governance? 2.What are a minimum of four best practices for Information Governance? 3.What are the...

Mechanical Engineering
1.2K views

What is the accuracy and precision of using a ball screw of 0.5 diameter in designing...

Biology
1.2K views

Match the two columns regarding viruses Obligate intracellular parasites They have genetic information The genetic...

Biology
1.2K views

Part A The endomembrane system ale system watch this BioFlix animation Endomembrane System Drag the...

Basic Math
1.2K views

Which of the following denotes the power of the test 0 1 a OB 01...

Algebra
1.2K views

Evaluate the expression(- 4 - 4i)/4i and write the result in the form...

Algebra
1.2K views

2 You are given that ABEL APUZ and the following m B 51 mZZ 66...

Accounting
1.2K views

Best Buy uses the lower-of-cost-or-net realizable value basis for its inventory. The following...

Accounting
1.2K views

During the year of 20XX, a firm plans to produce and sell 15,000 units at...

Accounting
1.2K views

Keating Co. is considering disposing of equipment with a cost of $70,000 and accumulated depreciation...

Accounting
1.2K views

The Finishing Department of Berle Industries works on only one product, and all costs are...

Finance
1.2K views

Given the following information, what are the NZD/SGD currency against currency bid- ask quotations? (Do...