Operations for the Accounting Department
Due to numerous requests, we have created this 2 day course for accounting department personnel
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This excellent cross training course presents the basics of oil and gas operations from the perspective of people working in the accounting departments. Along with detailed discussions of operations subjects such as drilling, completion, production, workovers, also included are the accounting issues that go them. The course then moves into fundamentals of land, leasing, interest calculations (working, royalty, ORRI & division orders), revenue statements, joint interest billings, audits, joint operations agreements and how they affect accounting issues, gas balancing and profit centers.
Attendees will learn about the sequence of events in getting a well drilled and who the main people involved are. What is a spud meeting? Who approves invoices?
For example, when discussing casing, we talk about the kinds of casing used, their design and then ways to check to see what was run in the well versus what was billed. Are credits needed? Were discounts handled properly? What are some of the 'mistakes' seen in over-billings or improper credits?
Participants get to work numerous problems with these major issues including calculations of working interests and royalties in a producing unit. How do you incorporate undivided royalty interests? What are net acres? What about net profits interests? What is an inflated decimal?
There is really no other course out there like this one. Not only can accounting personnel (revenue, JIB, accounts payable/receivable, auditing, etc.) learn about both accounting and operations, production people can also benefit by learning what goes on in the accounting department. Why do accounting people have so many deadlines? How can a streamlined invoice process benefit both operations and accounting departments? Why are joint interest audits necessary and how does one conduct them under the JOA?
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Course Objectives
How a well is drilled; the people involved in drilling; designing a wellThe drilling sequence of events; what has to happen to get a well drilledAFE's; the philosophy of AFE's; the spud meetingHorizontal and high angle drilling detailsOrdering services & equipment; invoicing issues; auditing issuesCost per foot concept: "save a dime, spend a buck" mentalityCompleting a well; details about acid and frac stimulations; accounting for frac oil & waterReading drilling and completion reportsProduction basics; operating costs and statementsWorkovers; facilities (SWD, compressor, etc.); profit/service centersLand and leasing basics; lease terms; current practicesUnitization, spacing and proration; division orders and how they are constructedExtensive calculations of working and royalty interests; undivided interests; reversions; net profitsJoint Operating Agreement section-by-section discussion; accounting procedures describedMaterial transfers; proper transfers and the 'tricks' of the tradeRevenue calculations and statements; adjusting oil and gas prices; price & cost deductionsGas balancing; calculations and statements; the value of under productionNumerous exercises throughout_______________________________________________________________________________________
About This Course
Included is a workbook of slides, charts, illustrations, exercises, outlines and articles. Attendees find this book makes a good reference long after taking the class. Also included is a free software disk of Excel templates used in the class
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Continuing Education Credits
Continuing education credits, CPE, CPL., etc., have been granted for our courses by most states. Please call about your particular professional educational credits.
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