I need answers ASAP 8-2. A broker obtains a lease from a landowner who...
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8-2. A broker obtains a lease from a landowner who retains a 17% royalty interest. The broker turns 100% of the deal to Major Oil for a 6% overriding royalty interest proportionately reduced. Major Oil wants to reduce its risk, so it farms out its interest for a 25% carried interest to the casing point to Independent Oil, the farmee. a) Determine what fraction of the costs each player must pay prior to setting casing. b) Determine the working interest and net revenue interest for each player from the casing point forward
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