Chapter 2 • Introduction to Oil and Gas Accounting 55

CHART OF ACCOUNTS FOR A

SUCCESSFUL EFFORTS COMPANY
00000—00499 Cash Accounts
00001-000 Cash—Houston National Bank
00054-000 Cash—Chase NY

01000—01999 Accounts Receivables

01010-000 A/R—Lease Revenue
01410-000 A/R—Joint Venture
01411-000 A/R—Joint Venture Cash Calls
01901-000 A/R—Allowance for Doubtful Accounts

02500—02599 Material & Supplies

02501-000 Materials & Supplies (M&S) Inventory
02501-020 Material & Supplies—Material Transfers, Pipe
02501-021 Material & Supplies—Material Transfers, Equipment

03000—03499 Prepaids
03001-000 Prepaid Insurance
03101-000 Miscellaneous Prepaids

03500—03999 Accruals
03511-000 Accrued Gas Underdeliveries
03521-000 Accrued Pipeline Imbalance

10000—19999 Unevaluated Leaseholds—Unproved

Property
10101-000 Unevaluated Leaseholds
10101-904 Unevaluated Leaseholds, Overhead Allocation
10101-905 Unevaluated Leaseholds, Capitalized Interest
10101-907 Unevaluated Leaseholds, Allowance
10105-000 Accumulated Unevaluated Leasehold Improvements
10200-000 Unproved Nonworking Interests

12000—12299 Producing Leaseholds—Proved Property

12011-000 Producing Leaseholds
12011-904 Producing Leaseholds—Overhead Allocation
12019-000 Producing Leaseholds—Capitalized Interest
12031-000 Producing Royalties
12041-000 Producing Property Retirements
FUNDAMENTALS OF OIL & GAS ACCOUNTING

12050—12310 Wells and Equipment

12051-000 Intangible Drilling Cost
12071-000 Lease & Well Equipment

12310-000—12310-999 Offshore Development Drilling

(Offdevdrl) (Wells-in-progress)
12310-040 Offdevdrl—Title Examination
12310-043 Offdevdrl—Survey, Location, Damages
12310-046 Offdevdrl—Mobile and Demobile
12310-049 Offdevdrl—Contract Drilling
12310-052 Offdevdrl—Turnkey Drilling
12310-055 Offdevdrl—Completion Rig
12310-058 Offdevdrl—Directional Drill, Well Survey
12310-061 Offdevdrl—Water
12310-063 Offdevdrl—Lost/Dam Rental Equipment
12310-064 Offdevdrl—Equipment Rental & Service
12310-067 Offdevdrl—Mud & Chemicals
12310-068 Offdevdrl—Completion W/O Fluids
12310-070 Offdevdrl—Drilling Bits
12310-071 Offdevdrl—Perforating
12310-074 Offdevdrl—Cement & Cement Service
12310-077 Offdevdrl—Well Log/Open Hole
12310-078 Offdevdrl—Well Log/Cased Hole
12310-080 Offdevdrl—Mud Logging
12310-082 Offdevdrl—Fishing Tools & Service
12310-083 Offdevdrl—Wireline Services
12310-086 Offdevdrl—Well Testing
12310-088 Offdevdrl—Tubular & Equipment Repair
12310-089 Offdevdrl—Tubular Inspection Service
12310-091 Offdevdrl—Stimulation
12310-092 Offdevdrl—Sand Control
12310-094 Offdevdrl—Reamers & Stabilizer
12310-095 Offdevdrl—Trucking, Land Transportation
12310-096 Offdevdrl—Boat, Water Transportation
12310-097 Offdevdrl—Helicopter, Air Transportation
12310-098 Offdevdrl—Abandonment Expense
12310-101 Offdevdrl—Company Labor
12310-103 Offdevdrl—Payroll Burden
12310-105 Offdevdrl—Contract Labor
12310-107 Offdevdrl—Consultants
12310-108 Offdevdrl—Meals/Entertainment
12310-109 Offdevdrl—Other Employee Expense
12310-123 Offdevdrl—Fuel & Electric
 Chapter 2 • Introduction to Oil and Gas Accounting 57

12310-150 Offdevdrl—Pollution Control

12310-179 Offdevdrl—Insurance
12310-180 Offdevdrl—Legal
12310-189 Offdevdrl—Federal Fuel Use Sales Tax
12310-190 Offdevdrl—State Fuel Use Sales Tax
12310-200 Offdevdrl—Overhead
12310-207 Offdevdrl—Misc., Unclassified
12310-299 Offdevdrl—Intangible J O Share
12310-300 Offdevdrl—Casing
12310-301 Offdevdrl—Tubing
12310-302 Offdevdrl—Wellhead Equipment
12310-303 Offdevdrl—Subsurface Equipment
12310-330 Offdevdrl—Miscellaneous Nonoperating Equipment
12310-399 Offdevdrl—Tangible J O Share
12310-902 Offdevdrl—Account Transfers

12311-000—12311-999 Offshore Facilities (WELLS-IN-PROGRESS)

(Many of the individual accounts are similar to accounts for
offshore development drilling.)

12312-000—12312-999 Offshore Workover (WELLS-IN-PROGRESS)

(Individual accounts are similar to accounts for offshore
development drilling.)

12313-000—12313-999 Offshore Recompletion (WELLS-IN-PROGRESS)

(Individual accounts are similar to accounts for offshore
development drilling.)

12314-000—12314-999 Offshore Development Well Plug and

Abandonment (Offdevpa) (WELLS-IN-PROGRESS)
12314-043 Offdevpa—Survey, Road, Location, Damage
12314-046 Offdevpa—Mobile and Demobile
12314-055 Offdevpa—Completion Rig
12314-061 Offdevpa—Water
12314-063 Offdevpa—Lost/Dam Rental Equipment
12314-064 Offdevpa—Equipment Rental & Service
12314-067 Offdevpa—Mud & Chemicals
12314-068 Offdevpa—Completion without Fluids
12314-070 Offdevpa—Drilling Bits
12314-071 Offdevpa—Perforation
12314-074 Offdevpa—Cement & Cement Service
12314-078 Offdevpa—Well Log/Cased Hole
12314-082 Offdevpa—Fishing Tools & Service
12314-083 Offdevpa—Wireline Services
12314-088 Offdevpa—Tubular & Equipment Repair
FUNDAMENTALS OF OIL & GAS ACCOUNTING

12314-089 Offdevpa—Tubular Inspection Services

12314-091 Offdevpa—Stimulation
12314-095 Offdevpa—Trucking, Land Transportation
12314-096 Offdevpa—Boat, Water Transportation
12314-097 Offdevpa—Helicopter, Air Transportation
12314-101 Offdevpa—Company Labor
12314-103 Offdevpa—Payroll Burden
12314-105 Offdevpa—Contract Labor
12314-107 Offdevpa—Consultants
12314-108 Offdevpa—Meals/Entertainment
12314-109 Offdevpa—Other Employee Expense
12314-123 Offdevpa—Fuel & Electric
12314-150 Offdevpa—Pollution Control
12314-179 Offdevpa—Insurance
12314-189 Offdevpa—Federal Fuel Use Sales Tax
12314-190 Offdevpa—State Fuel Use Sales Tax
12314-200 Offdevpa—Overhead
12314-207 Offdevpa—Miscellaneous Unclassified
12314-299 Offdevpa—Intangible Joint Operations Share
12314-300 Offdevpa—Casing
12314-301 Offdevpa—Tubing
12314-302 Offdevpa—Wellhead Equipment
12314-303 Offdevpa—Subsurface Equipment
12314-330 Offdevpa—Miscellaneous Nonoperating Equipment
12314-399 Offdevpa—Tangible Joint Operations Share

12317-000—12317-999 Offshore Exploratory Drilling

(WELLS-IN-PROGRESS)
12320-000—12320-999 Onshore Development Drilling (WELLS-IN-
PROGRESS)
12321-000—12321-999 Onshore Facilities (WELLS-IN-PROGRESS)
12322-000—12322-999 Onshore Workover (WELLS-IN-PROGRESS)
12323-000—12323-999 Onshore Recompletions (WELLS-IN-
PROGRESS)
12324-000—12324-999 Onshore Development Well Plug and
Abandon
(WELLS-IN-PROGRESS)
12327-000—12327-999 Onshore Exploratory Drilling (WELLS-IN-
PROGRESS)

12330-000—12330-999 Offshore Lease Acquisition—Unproved Property

 Chapter 2 • Introduction to Oil and Gas Accounting 59

12330-400 Offshore Lease Acquisition—General AFE Cost

12330-404 Offshore Lease Acquisition—Lease Bonus
12330-408 Offshore Lease Acquisition—Brokerage
12330-411 Offshore Lease Acquisition—Recording Fees
12330-415 Offshore Lease Acquisition—Unitization
12330-418 Offshore Lease Acquisition—Legal
12330-420 Offshore Lease Acquisition—Division Order Title Exam

14000—14131 Miscellaneous Assets

13501-000 Plant Equipment & Facilities
14011-000 Transportation—Vehicles
14031-000 Marine Equipment
14051-000 Work Equipment
14071-000 Furniture & Fixtures
14091-000 Computer Equipment—Hardware
14101-000 Computer Equipment—Software
14111-000 Leasehold Improvements
14131-000 Telephone/Communication Equipment

16000—16999 Accumulated DD&A and Writedowns

18101-000 Long-Term Receivable
18201-000 Note Receivable—Branch
19001-000 Preacquisition Expenses

19021—19091 Deferred Federal Income Tax

20000—20999 Accounts Payable

21000—21999 Short-Term Notes Payable
24000—24999 Accrued State and Federal Taxes

29000—29999 Accrued Liabilities

29001-000 Accrued Miscellaneous Liabilities
29006-000 Accrued Gas Marketing Liabilities
29007-000 Accrued Oil Marketing Liabilities
29010-000 Accrued Rent
29011-000 Accrued Accounting Fees
29111-000 Accrued Gas Overdeliveries
29501-000 Accrued Vacation Pay

30000—31999 Long-Term Notes Payable

40000—49999 Stockholders Equity and Related Accounts
40001-000 Common Stock
41001-000 Contributed Capital
FUNDAMENTALS OF OIL & GAS ACCOUNTING

42001-000 Retained Earnings

42005-000 Dividends Declared

53000—59999 Revenues and Gains

53001-000 Revenue—Oil
53500-000 Revenue—Gas
53600-000 Royalty Revenue
54001-000 Plant Revenue
55001-000 Pipeline Transportation Revenue
59001-000 Miscellaneous Operating Income
59501-000 Gas Balance Settlements/Adjustments
59601-000 Gain on Sale/Retirement of Prop

60000—60999 Lease Operating Expense (LOE)

60001-061 LOE—Water
60001-096 LOE—Trucking & Land Transportation
60001-096 LOE—Boats, Water Transportation
60001-097 LOE—Helicopter, Air Transportation
60001-101 LOE—Company Labor
60001-103 LOE—Payroll Burden
60001-104 LOE—Employee Pension
60001-105 LOE—Contract Labor
60001-107 LOE—Consultants & Professional Service
60001-108 LOE—Meals/Entertainment
60001-109 LOE—Other Employee Expense
60001-112 LOE—Chemicals & Treating
60001-114 LOE—Supplies & Tools
60001-116 LOE—Gathering
60001-119 LOE—Transportation
60001-123 LOE—Fuel & Electric
60001-131 LOE—Saltwater Disposal
60001-135 LOE—Groceries & Food
60001-137 LOE—Other Rents
60001-139 LOE—Measurement & Testing
60001-143 LOE—Gas Marketing Service & Repair
60001-147 LOE—Safety & Supplies
60001-150 LOE—Pollution Control
60001-154 LOE—Compressor Parts
60001-158 LOE—Surface Repairs & Maintenance
60001-160 LOE—Communications
60001-162 LOE—Road & Location Maintenance
60001-164 LOE—Controllable Equipment
 Chapter 2 • Introduction to Oil and Gas Accounting 61

60001-166 LOE—Subsurface Repairs & Maintenance

60001-170 LOE—Well Workover
60001-172 LOE—Well Services
60001-176 LOE—Abandonment
60001-180 LOE—Legal
60001-182 LOE—Equipment Rental & Service
60001-183 LOE—Compressor Rentals
60001-185 LOE—Ad Valorem Tax
60001-188 LOE—Production/Severance Tax
60001-189 LOE—Federal Fuel Use Sales Tax
60001-190 LOE—State Fuel Use Sales Tax
60001-192 LOE—Prod./Severance Tax (20% prop.)
60001-194 LOE—Field Expense
60001-196 LOE—Facility Operations
60001-198 LOE—Net Profits Interest
60001-200 LOE—Overhead
60001-201 LOE—District Expense
60001-204 LOE—Miscellaneous
60001-205 LOE—Nonoperating Joint Cost
60001-250 LOE—Advances to Operators
60001-995 LOE—Cutback on Insurance
60001-999 LOE—Charges to Joint Owners

61000—61999 Marketing and Transportation Expense

66000—66999 General and Administrative Expense

66001-501 G&A—Salaries & Wages
66001-505 G&A—Bonus Compensation
66001-509 G&A—Auto Allowance
66001-514 G&A—Company Vehicle
66001-519 G&A—Parking
66001-525 G&A—Remote Parking
66001-529 G&A—Relocation
66001-533 G&A—Education Reimbursement
66001-538 G&A—Personal Development
66001-542 G&A—Subscriptions/Publications
66001-543 G&A—Professional Dues
66001-545 G&A—Membership Dues
66001-547 G&A—Entertainment
66001-552 G&A—Meals
66001-556 G&A—Lodging
66001-560 G&A—Transportation
66001-564 G&A—Auto/Taxi
FUNDAMENTALS OF OIL & GAS ACCOUNTING

66001-568 G&A—Overtime Meal Allowance

66001-572 G&A—Other Employee Expense
66001-576 G&A—Group Insurance
66001-580 G&A—Workers Compensation
66001-584 G&A—Employer FICA
66001-588 G&A—Federal/State Unemployment
66001-592 G&A—Thrift Contributions
66001-594 G&A—Other Employee Benefits
66001-595 G&A—Employee Pension
66001-596 G&A—Office Contract Labor
66001-599 G&A—Contract Labor Benefits
66001-603 G&A—Accounting Fees
66001-608 G&A—Accounting—Tax Fees
66001-612 G&A—Legal Fees, Litigation
66001-616 G&A—Legal Fees, Other
66001-620 G&A—Data Processing Fees
66001-624 G&A—Reserve Engineering Fees
66001-628 G&A—Other Professional Fees
66001-630 G&A—Office Rent
66001-632 G&A—Communications
66001-636 G&A—Reproduction
66001-640 G&A—Postage
66001-644 G&A—Courier/Messenger Services
66001-648 G&A—Office Equip Rentals & Services
66001-652 G&A—Maintenance & Repairs
66001-656 G&A—Moving & Storage
66001-660 G&A—Office Supplies
66001-661 G&A—Data Processing Supplies
66001-664 G&A—Refreshments
66001-668 G&A—Contributions
66001-672 G&A—General Liability Insurance
66001-676 G&A—Property & Casualty Insurance
66001-680 G&A—Miscellaneous Taxes
66001-685 G&A—Ad Valorem Taxes
66001-686 G&A—Outside Service, Other
66001-688 G&A—Other G&A

68000—68999 DD&A Expense

 Chapter 2 • Introduction to Oil and Gas Accounting 63

70000—70999 Nonproductive Expenses

70000-100 Nonproductive Exploratory Drilling
70000-200 Dry-Hole and Bottom-Hole Contributions
70000-300 Delay Rentals
70000-400 G&G Services
70000-500 Carrying and Maintenance Costs
70000-600 Abandoned Leases
70000-700 Impairment

79600—85400 Miscellaneous Expenses

79601-000 Bad Debt Expense
80001-000 Federal Income Tax—Current
81001-000 Deferred Federal Income Tax—Capitalized Interest