Belford Oil Corp., a successful effort company, drilled its first successful well on Lease Armando this year. Data for Lease Armando as the end of this year are as follows.

Unrecovered IDC (unamortizedIDC)$ 740,000

Proved property costs,net200,000

L&WE,gross280,000

Beginning of year accumulated DD&Aequipment60,000

Estimated proved reserves:

Oil150,000 bbl

Gas900,000 Mcf

Production during this year:

Oil20,000 bbl

Gas60,000 Mcf

Required:

Assuming the lease is fully developed, compute amortization using a common unit of measure based on BOE.