Fundamentals of Oil & Gas Accounting 5th Edition by Rebecca Gallun, Charlotte Wright

Exercise 14

How does amortization of drilling costs differ under the three methods? Include in
your answer a discussion of the method used, which reserves are used, if any, and
which drilling costs are amortized-dry versus successful, exploratory well versus
development well, completed versus uncompleted, and IDC versus L&WE. Also
include the cost center used-i.e., are drilling costs amortized separately or by some
grouping? Assume for full cost all possible costs are amortized.