Belford Oil Corp., a successful effort company, drilled its first successful well on Lease Armado this year. Data for Lease Armado as the end of this year are as follows. Unrecovered IDC (unamortized IDC) $ 740,000 Proved property costs, net 200,000 L&WE , gross 280,000 Beginning of year accumulated DD&A equipment 60,000 Estimated proved reserves: Oil 150,000 bbl Gas 900,000 Mcf Production during this year: Oil 20,000 bbl Gas 60,000 Mcf Required: Assuming the lease is fully developed, compute amortization using a common unit of measure based on BOE.

P36. (10 points) elford Oil Corp., a successful effort company, drilled its first successful well on Lease Armado this year. Data for Lease Armado as the end of this year are as foll Unrecovered IDC IDC S 740,000 200,000 costs, net L&WE Beginning of year accumulated DD& A equipment Estimated proved reserves 280,000 60,000 Oil Gas 150,000 bbl 900,000 Mcf Production during this year Oil 20,000 bbl 60,000 Mcf Gas Required: Assuming the lease is fully develo compute amortization using a common unit of measure based on BOE