I am looking at the differences between percentage and cost depletion on oil and gas income in Colorado for 2015. But in order to calculate cost depletion - I first need a EUR number on each well. Where would be the best place to get this number from? Do I need to go to the online presentations of the company that is operating these wells or do I need to talk to a petroleum engineer? Any help is appreciated.
You will need to talk to a PE. However, i know of nobody that does not take percentage depletion.
Best
Buddy Cotten
Like Buddy says, you need an engineering report. While Buddy is correct that very few Royalty Owners take cost depletion, I believe that is because most don't have any cost basis in their royalty. If you purchased your mineral/royalty interest for a significant purchase price then cost depletion could be more favorable, at least in the short term, although you could short-change yourself long term.
Unless you are in some really big wells with really big cost basis, it probably isn't worth your time and money to have the engineering report prepared.
Can anyone recommend a PE who can provide a engineer report to me at a reasonable price?
How big of a job will it be? How many wells, etc.?
The job would involve engineer reports on 5 horizontal wells.
Just sent you a private message.