Question

Discuss why each party to a test-well contribution situation would enter into the transaction.

Discuss why each party to a test-well contribution situation would enter into the transaction.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

There are two parties to a test-well contribution situation – the company that drills a well and another company that owns working interest in nearby acreage.

The company that drills a well will enter into the transaction because it stands to receive money from the other party for the G&G information provided by it. This money helps the company that drills to partially offset the cost of drilling the well. On the other hand the company that owns working interest in nearby acreage enters into the transaction as it stands to receive valuable information and that too without having to incur and pay the cost of drilling. It also does not have to bear the risk that is associated with drilling a well.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
For each of the listed transactions enter a numerical value to indicate the contribution to GDP....
For each of the listed transactions enter a numerical value to indicate the contribution to GDP. If the transaction does not affect GDP then enter the number zero (0). In September, Joe sells his four-year old car to CarMax (a used car company) for $2,000, and the next week CarMax sells the car to Fred for $2,600. ______ Jack pays a college student $100 to help him move. ______ Restaurant Q pays $500 for the fish it will use in...
Would Mordant Yellow Dye 10 interact well with a Teflon-coated magnetic stir bar? Why or why...
Would Mordant Yellow Dye 10 interact well with a Teflon-coated magnetic stir bar? Why or why not? Discuss the intermolecular interactions betwee Teflon and the dye.
The following have entered into a deed where each party guarantees to each creditor in the...
The following have entered into a deed where each party guarantees to each creditor in the Group payment in full of any debt upon winding up.  Unicorn Pty. Limited  Uniwing Pty. Limited  Freewill Group Limited  Tornado Pty. Limited  ChopChop Pty. Limited Unicorn Pty. Limited had just taken a $4 million loan from Westpac Bank. There is no indication of any default on loan. Required: a)Discuss whether the loan Unicorn Pty. Limited took can be recognise...
Explain why a linear model would or would not be appropriate to model that situation. In...
Explain why a linear model would or would not be appropriate to model that situation. In addition to your explanation make sure you clearly let me know if a linear function would be good or not for each situation. a)An employee’s earnings at a part-time job as a function of the number of hours they work. b)The number of cases of a highly contagious disease as a function of days since it was first detected. c)The length of a fish...
Explain how each of the following transactions would enter the U.S. balance of payments account. Discuss...
Explain how each of the following transactions would enter the U.S. balance of payments account. Discuss only the transactions described. Do not be concerned with possible offsetting transactions. a. United States donates footballs to Japan. b. United States sells computers to Russia and uses the proceeds to buy shares of stocks in Russian companies c. A U.S. collector buys some ancient artifacts from a collection in Egypt.
Explain how each of the following transactions would enter the U.S. balance of payments account. Discuss...
Explain how each of the following transactions would enter the U.S. balance of payments account. Discuss only the transactions described. Do not be concerned with possible offsetting transactions. a. United States donates footballs to Japan. b. United States sells computers to Russia and uses the proceeds to buy shares of stocks in Russian companies c. A U.S. collector buys some ancient artifacts from a collection in Egypt.
Which detector would be best employed for the following situation and why? Situation: Measuring exposure rate...
Which detector would be best employed for the following situation and why? Situation: Measuring exposure rate in a gamma field from several different radionuclides.
The following situations may occur in the medical office. For each situation, Discuss an appropriate action...
The following situations may occur in the medical office. For each situation, Discuss an appropriate action to take that complies with the OSHA Occupational Exposure to Bloodborne Pathogens Standard. Situation: You just gave an injection to a patient, and after withdrawing the needle, you notice that there is no sharps container in the room. Action: Recap the needle using a one-handed recapping technique. Why? Situation: You are getting ready to apply gloves and notice that you have a cut on...
For each of the unrelated transactions described below, present the entries required to record each transaction....
For each of the unrelated transactions described below, present the entries required to record each transaction. 1. Crane Corp. issued $19,300,000 par value 10% convertible bonds at 99. If the bonds had not been convertible, the company’s investment banker estimates they would have been sold at 95. 2. Cheyenne Company issued $19,300,000 par value 10% bonds at 98. One detachable stock purchase warrant was issued with each $100 par value bond. At the time of issuance, the warrants were selling...
Describe a situation in which: a. A one-tailed test of hypothesis would be appropriate b. A...
Describe a situation in which: a. A one-tailed test of hypothesis would be appropriate b. A two-tailed test of hypothesis would be appropriate c. A hypothesis test for a t-distribution would be appropriate d. A hypothesis test for a z-distribution (z score) would be appropriate
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT