Replies to post #10461 on Supurva Healthcare Group Inc (SPRV)

[CSykes]

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