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CSykes

05/01/07 10:36 AM

#10472 RE: Fishdog #10461

Royalties were factored in... read the flow chart.

Operating costs $14 per barrel
General and administrative costs $3 per barrel
Royalties $2.97 per barrel
Severance taxes $ .99 per barrel

Total production cost factor $20.96 per barrel. Information was taken from a fact sheet issued by the Independent Petroleum Association of America.


http://www.ipaa.org/issues/factsheets/oil/MarginalWellTaxCreditFactSheetOctober2004.pdf