Missy Gaines owns the mineral rights in land in Oklahoma, which she leased to Drill...
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Missy Gaines owns the mineral rights in land in Oklahoma, which she leased to Drill Quick Oil & Gas. In that agreement, Missy received a 25% royalty interest. Later, Drill Quick Oil & Gas entered into a sales contract where it sold 40% of its working interest to Time Wise Company. In 2019, total proved reserves for the property are estimated to be 1,000,000 barrels, and total production during 2019 was 100,000 barrels. Under this agreement, royalty is payable to Missy Gaines in cash.
REQUIRED: Determination of proved reserves to be included in the reserve report.
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