Two Questions: First: I’m trying to create a year end depletion statement for a unit where I hold Royalty and Working Interest. For the Unit, the JIBs show expenses on well level and on unit level. Revenue statements show Royalty revenue and Working Interest Revenue on Unit level but no revenue on well level. To determine depletion, should unit revenue and expenses be allocated to well level or can wells be rolled up to unit level ?
Second: How do I tell which wells are in a Unit? I see the names are almost the same - with a numeric identifier at the end - but then I have similar property names with Tract number in the name - can they all be part of same unit or are Tracts handled differently? or perhaps is “Tract” just part of the name?
Thank you! TMW