A developmental drilling program involves drilling for oil and gas in areas with proven reserves to depths known to have been productive in the past. This often involves drilling additional wells in or adjacent to a field with established production.
Costs incurred in drilling, testing, completing, and reworking oil and gas wells, such as labor, core analysis, fracturing, drill stem testing, engineering, fuel, geologists' expenses; as well as abandonment losses, management fees, delay rentals, and similar expenses.
A partnership consisting of one or more Limited (Special) Partners and one or more General Partners that is structured to find, extract, and market commercial quantities of oil and natural gas.
The term 'Oil Patch' refers to states in the United States that produce and refine significant amounts of oil and natural gas. Key states include Texas, Oklahoma, Louisiana, California, and Alaska. Economists often refer to Oil Patch states when assessing the impact of oil price fluctuations on the regional economy.
Petroleum Revenue Tax (PRT) is a tax levied on the profits made from the extraction of oil and gas in the UK continental shelf. It was introduced to ensure fair taxation on profits from oil and gas extraction.
The principal value of an oil or gas property, demonstrated through methods such as prospecting, exploration, or discovery work. Proven property examples include development wells, but exclude wildcat wells.
Wildcat drilling refers to the process of exploring for oil or gas in unproven or undeveloped areas, which involves high risks but offers potential for high rewards if commercially viable resources are discovered.
A customary seven-eighths interest in the oil business that bears the cost of development and operation of an oil or gas property.
