Answer Happy

instructor will evalua assumptions in the test. Question 1 (40 points) Transglobe energy corporation announces a new discovery in the northwest of Gharib in the Arab Republic of Egypt. The project includes 70% working interest for transglobe energy, a royalty interest of 10%, and an override royalty of 5% to a geologist. Red Bed section counts with approximately 40 net feet of oil pay in a sandy/conglomerate sequence. The well spacing is 640 acres with a leasing cost of $ 1000 per acre. The drilling and completion costs are $ 3,000,000 per well. The initial oil production is 750 BOPD, and it is expected to follow an exponential decline of 10% per year. The well will be abandoned in 30 years when the lease expires. With this information, determine: 1. What is the total EUR of the well? (10 points) 2. What is the F&D cost of the well? (10 points) 3. How many barrels from the first three (3) years of production belong to the geologist? (10 points) 4. How much of the drilling costs ($ 3,000,000) transglobe energy is responsible for? (10 points)