08 Feb EnCana, the giant oil company, holds huge reserves
EnCana, the giant oil company, holds huge reserves of oil and gas assets. Assume that at the end of 2017 EnCana s cost of oil and gas assets totaled approximately $18 billion, representing 2.4 billion barrels of oil and gas reserves in the ground. 1. Which amortization method does EnCana use to compute its annual amortization expense for the oil and gas removed from the ground? 2. Suppose EnCana removed 0.8 billion barrels of oil during 2017. Record EnCana s amortization expense for 2017.
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