Introducing the PHDwin Version 3 Cost Depletion Report – your key to efficient tax liability management in the realm of oil and gas reserves. This report offers a comprehensive estimation of the proportion of remaining reserves produced or sold during a given tax year, empowering mineral interest owners to strategically reduce their tax burdens.
Key Features
BOE Basis: Presented on a barrel of oil equivalent (BOE) basis, utilizing un-shrunk volumes for oil and gas production, net to the interest owner.
Cost Depletion Ratio: Calculated through a meticulous formula accounting for the first-year net BOE and net reserves BOE, offering a precise assessment of depletion rates.
3. Flexibility: Customizable BOE factors allow users to tailor the report according to specific reporting conventions, ensuring accuracy and relevance to individual cases.
4. Attention to Detail: Precedence settings and historical production checks ensure data integrity, with warnings flagging any discrepancies for timely resolution.
5. Streamlined Workflow: Simplified parameters section enables swift adjustments and optimization, while warnings serve as proactive reminders for comprehensive reporting.
Address warnings, if any, before generating your cost depletion report, ensuring accuracy and compliance every step of the way.
Stay tuned for more insights and updates as we delve deeper into the functionalities of PHDwin Version 3, empowering you to navigate the complexities of petroleum economics with confidence and precision.
Unlock the full potential of your reserves with PHDwin V3 Cost Depletion Report – transforming tax liabilities into strategic advantages, one calculation at a time.
Additional Notes:
Default BOE Factor is set in the oil equivalence tab of the Phase configurations database setting. This is used as the starting value for converting gas volumes to BOE. A different value can be specified in the parameters section of the report in the report unit for the selected reporting convention.
Note the following:
·The report date should be set to the beginning of the tax year. If the tax year for which the report is generated is FY 2022, the report date should be set to 1/1/2022.
·Precedence setting should be set to history, which is the PHDWin default. If the precedence setting is set to projection for any case, that setting is honored. If warning is enabled, a (1) is displayed next to the First Year Net BOE value of the case to highlight that projection precedence is selected.
·There should be historical production for the full tax year. If any month in the 12-month period is missing historical data, it will be augmented with existing projections. If warning is enabled, a (2) is shown next to the First Year Net BOE value to highlight the presence of incomplete historical production for the tax year.
·A zero for First Year Net BOE shows a depletion ratio of 0 while a zero for Net Reserves BOE shows a depletion ratio of N.A
