Exploratory Well

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Dictionary Says

Definition of 'Exploratory Well'

A deep hole, in the earth, that a petroleum or natural gas company drills in the hopes of locating a new source of fossil fuel. An exploratory well represents a risk for the company drilling it, because it is not known, before investing in the well, how much oil or natural gas it might contain. The well may turn out to be a profitable new source of fossil fuel, or it may contain noncommercial quantities of fuel that aren't worth extracting; in the latter case, the well may be plugged and abandoned.

Also referred to as a "wildcat well."

Investopedia Says

Investopedia explains 'Exploratory Well'

For accounting purposes, the costs of drilling an exploratory well are considered capital expenditures. Petroleum and natural gas companies must incur these costs if they want to thrive and grow, because any producing reservoir contains a finite amount of fossil fuel and will eventually be depleted.

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'Exploratory Well'

  • Say Hello To Kosmos Energy

    http://stocks.investopedia.com/stock-analysis/2011/Say-Hello-To-Kosmos-Energy-KOS-APC-HES-STO-XOM-OTCREPYY.PK0720.aspx
    ... The company drilled an exploratory well on the Kombe-N'sepe block in 2011 and plugged
    and abandoned the well after non commercial quantities of natural gas ...

  • Unearth Profits In Oil Exploration And Production

    http://www.investopedia.com/articles/stocks/07/oil-gas.asp
    ... reward. Drilling an exploratory well can sometimes result in the discovery
    of a large new reservoir or oil and gas field. Most E&P ...

  • Total Sets Up For Future Growth

    http://stocks.investopedia.com/stock-analysis/2012/Total-Sets-Up-For-Future-Growth-TOT-BP-XOM-STO0214.aspx
    ... in 2012. In French Guiana, the company was involved in the Zaedyus exploratory
    well drilled by operator Tullow Oil. Total has put ...

  • New Zealand Oil And Gas Exploration

    http://stocks.investopedia.com/stock-analysis/2010/New-Zealand-Oil-And-Gas-Exploration-APC-PBR-BP-RDS0623.aspx
    ... more than 9 million acres. The company has 20 promising areas on the block
    and is targeting 2011 for the first exploratory well. ...

  • Energy Companies Hurt By Deepwater Moratorium

    http://stocks.investopedia.com/stock-analysis/2010/Energy-Companies-Hurt-By-Deepwater-Moratorium--NBL-SGY-CVX-CIE-RDS-BP0607.aspx
    ... Total SA (NYSE:TOT) owned the balance of this well. Also planned was an exploratory
    well at the Ligurian prospect located in the Green Canyon block. ...

  • Conoco Phillips Explores For Future Growth

    http://stocks.investopedia.com/stock-analysis/2011/Conoco-Phillips-Explores-For-Future-Growth-COP0330.aspx
    ... On top of that, the company is active in exploring in the Caspian Sea, and
    recently finished drilling an exploratory well in Kazakhstan. ...

  • Utica Shale Moves Forward

    http://stocks.investopedia.com/stock-analysis/2011/Utica-Shale-Moves-Forward-CHK-EQT-CNX-REXX-RRC0506.aspx
    ... drilled an exploratory well into the Utica Shale in 2008 and took an impairment
    charge related to this well after converting it into a Marcellus Shale well. ...

  • Murphy Oil International Portfolio A Winner

    http://stocks.investopedia.com/stock-analysis/2010/Murphy-Oil-International-Portfolio-A-Winner-MUR0526.aspx
    ... in offshore Suriname. The company's remaining exploratory well is in the
    Semai II area, in offshore Indonesia. The two wells in ...

  • A Lively Start To 2010 For Energy Sector

    http://stocks.investopedia.com/stock-analysis/2010/A-Lively-Start-To-2010-For-Energy-Sector-CVX-MMR-APA-MUR0115.aspx
    ... The discovery might have been in only 20 feet of water, but the company
    drilled to nearly 30,000 feet in this exploratory well. ...

  • Noble Energy Moves Forward With Israeli Project

    http://stocks.investopedia.com/stock-analysis/2010/Noble-Energy-Moves-Forward-With-Israeli-Project-NBL1101.aspx
    ... of its onshore Niobrara Shale properties in the Rocky Mountain area, and also recently
    started drilling a high profile exploratory well offshore Israel. ...

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