In situations where a significant development expenditure has been made, but a portion of the related proved
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In situations where a significant development expenditure has been made, but a portion of the related proved reserves are not yet developed, it is necessary to
a. Exclude a portion of the development costs in determining the DD&A rate
b. Exclude all development costs in determining the DD&A rate
c. Include an estimate of future development costs in determining the DD&A rate
d. Exclude all future development costs in determining the DD&A rate
e. None of these apply
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Answer The correct answer is c Include an estimate of future development costs in determining the DD...View the full answer
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