Reserves contributed in a unitisation
Entities A and B enter into a unitisation agreement and contribute Licenses A and B, respectively. The table below shows the initial determination, redetermination and final determination of the reserves in each of the fields.
|
Initial determination |
Redeterminationn |
Final determination |
||||
|
mboe |
mboe |
mboe |
||||
|
License A |
20 |
40.% |
19 |
37.% |
21 |
39.% |
|
License B |
30 |
60.% |
32 |
63.% |
33 |
61.% |
|
50 |
100.% |
51 |
100.% |
54 |
100.% |
|
Although Licenses A and B were unitised, ultimately Entity A will be entitled to 21 mboe and Entity B will be entitled to 33 mboe, which is exactly the same quantity that they would have been entitled to had there been no unitisation.