Two Operating companies each hold leases on a 90,000A oil field, which they wish to form into an operating Unit. Negotiations are currently underway to establish Equity percentages, which will be used to pro-rate facility costs, lifting costs, and sales income. Use the STOOIP volumetric equation to estimate each partner's:
1. Reserves:
a. STOOIP
b. Recoverable Oil
2. % Equity, Based on:
a. Field Acreage
b. STOOIP
c. Recoverable Oil
3. Equity @ (current) Market, Based on:
a. STOOIP
b. Recoverable Oil
4. Net Equity @ (Current) Market
a. STOOIP
b. Recoverable Oil
5. Average Annual Income (assuming no Production Decline)
a. STOOIP
b. Recoverable Oil