A field has recently been brought into production. 14 development wells have already been drilled but a further 7 development wells have yet to be drilled. Depreciation is based only on those reserves that are proved and developed, but in this example we will have to add in the estimated costs of the 7 remaining development wells. Capitalised exploration and appraisal costs $62,000,000 Capitalised development costs $874,000,000 7 further development wells $84,000,000 326,000,000 barrels Total proved reserves Proved developed reserves 214,000,000 barrels Production in period 21,000,000 barrels Calculate DD&A charge for the accounting period using the prospective method. Assume the total number of wells to be drilled has not changed