What expense should not have been included? Overriding royalty. Do not subtract overriding royalties. They should not be counted against the lessee operator. Why? Because the working interest O pays 100% of expenses, but gets >100% of the $ What’s the correct total expenses? Approx 18K Did it produce in paying quantities? Yes because expenses < price
What expense should not have been included? Overriding royalty. Do not subtract overriding royalties. They should not be counted against the lessee operator. Why? Because the working interest O pays 100% of expenses, but gets >100% of the $ What’s the correct total expenses? Approx 18K Did it produce in paying quantities? Yes because expenses < price
dodge-oil-gas-law-figures-jones.docx