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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
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:
3,750 barrels.
7,875 barrels.
9,000 barrels.
18,375 barrels
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