The expected cost per barrel of oil for the New Brunswick oil company, based on their capitalized costs and estimated reserves, is approximately $2.60.
The expected cost per barrel of oil extracted by the oil company in New Brunswick can be calculated by dividing the capitalized costs for the license by the total amount of oil they expect to extract over the lifespan of the well. In this case, the capitalized costs amount to $10,907,000 and the estimated oil reserves are 4,195,000 barrels.
The expected production for the first year is 419,500 barrels. Therefore, to find the cost per barrel, you would divide $10,907,000 by 4,195,000 barrels, which calculates to an expected cost of approximately $2.60 per barrel of oil extracted. This calculation represents a simplification as it ignores other operational and development costs, market fluctuations, and additional exploration that might affect reserve estimates. However, it provides a fundamental analysis of the initial capital expenditure per unit of production.
In conclusion, considering the given capitalized cost and estimated oil reserves, the cost per barrel of oil for the New Brunswick oil company is roughly $2.60.