Alicia Garcia owns the mineral right in a property in Texas and leases the mineral right with a royalty of 1/8. Sand Oil Company owns 70% of the working interest and Scorpio Energy Co. owns the remaining 30%. During the year, total oil production was 30,000 barrels. Scorpio Energy Co. should determine its amortization (DD&A) based on:

1. 3,750 barrels.
2. 7,875 barrels.
3. 9,000 barrels.
4. 18,375 barrels