Calculate the economic life in mscf per month

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Calculate the Economic Life in Mscf per month for a gas lease with WI = 100%, NRI = 87.5%, condensate price = $15/STB, gas price = $2.25/Mscf, condensate yield = 5 STB/Mscf, gas and severance tax (each) = 4.5%. Assuming that ad valorem tax is negligible and LOE = $5,000 per month. Please show work.

Reference no: EM13728495

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