Calculation cog operating llc owns a working interest in an, Finance Basics

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Calculation cog operating llc owns a working interest in an

Question: Calculation: COG Operating LLC owns a working interest in an oil and gas lease. Lacking the funds to develop the lease, COG assigns the working interest to Concho Resources Inc, reserving 1/32 of 6/7 of production.

a) What of interest has Concho acquired? What amount?

b) What kind of interest has COG retained? What amount?

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Finance Basics: Calculation cog operating llc owns a working interest in an

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