Question

5. Indicate whether each of the following costs would be expensed (E) or capitalized (C) under full cost (FC) and successful efforts (SE) accounting. Cost SE FC a. Aerial magnetic study—an area of interest is identified b. Seismic studies on 20,000 acres-no land is leased c. Brokers' fees d. Bottom-hole contribution: Well is productive. Well is dry. e. Dry-hole contribution f. Delay rental payment g. Cost of landmen in acquiring properties h. G&G to select specific drillsite i. Cash bonus j. Productive exploratory drilling: Intangible costs Tangible costs k. Lease record maintenance on unproved properties 1. Exploratory dry-hole drilling Intangible costs Tangible costs m. Shooting rights n. Development dry-hole drilling: Intangible costs Tangible costs o. Production costs

Answer 1

5. Indicate whether each of the following costs would be expensed (E) or capitalized (C) under full cost (FC) and successful efforts (SE) accounting. Cost SE FC a. Aerial magnetic study-an area of interest is identified b. Seismic studies on 20,000 acres—no land is leased c. Brokers' fees С C d. Bottom-hole contribution: Well is productive. Well is dry. e. Dry-hole contribution f. Delay rental payment g. Cost of landmen in acquiring properties С C h. G&G to select specific drillsite i. Cash bonus j. Productive exploratory drilling: Intangible costs Tangible costs k. Lease record maintenance on unproved properties С C 1. Exploratory dry-hole drilling Intangible costs Tangible costs m. Shooting rights n. Development dry-hole drilling: Intangible costs Tangible costs o. Production costs с C mpromm ñ poomononoodles