Exploratory Well


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."

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.


Investment dictionary. . 2012.

Look at other dictionaries:

  • Exploratory well —   A hole drilled a) to find and produce oil or gas in an area previously considered unproductive area; b) to find a new reservoir in a known field, i.e., one previously producing oil and gas from another reservoir, or c) to extend the limit of a… …   Energy terms

  • Exploratory search — is a specialization of information exploration, which represents the activities carried out by searchers who are either [1] : * a) unfamiliar with the domain of their goal (ie need to learn about the topic in order to understand how to achieve… …   Wikipedia

  • Exploratory surgery — is a diagnostic method used by doctors when trying to find a diagnosis for an ailment. It can be performed in both humans and animals, but it is far more common in animals. It is used most commonly to diagnose or locate cancer in humans, but it… …   Wikipedia

  • Exploratory programming — is an important part of the software engineering cycle: when a domain is not very well understood or open ended, or it s not clear what algorithms and data structures might be needed for an implementation, it s useful to be able to interactively… …   Wikipedia

  • well logging — the process or technique of recording a well log. * * * well logging, the making of exploratory test borings in an underground mineral formation, and maintaining a record or log of what is found …   Useful english dictionary

  • Well stock — is the number and classification of all drilled wells according to their condition and function (in a deposit, gas field or underground gas storage). This stock includes all the exploratory, production, monitoring and special wells. They are… …   Glossary of Oil and Gas

  • Development Well — A well drilled in a proven producing area for the production of oil or gas. A development well is drilled to a depth that is likely to be productive, so as to maximize the chances of success. A development well stands in contrast to an… …   Investment dictionary

  • Test well contribution —   A payment made to the owner of an adjacent or nearby tract who has drilled an exploratory well on that tract in exchange for information obtained from the drilling effort.   U.S. Dept. of Energy, Energy Information Administration s Energy… …   Energy terms

  • Oil well — The pumpjack, such as this one located south of Midland, Texas, is a common sight in West Texas. An oil well is a general term for any boring through the earth s surface that is designed to find and acquire petroleum oil hydrocarbons. Usually… …   Wikipedia

  • Space Solar Power Exploratory Research and Technology program — The Space Solar Power Exploratory Research and Technology program (SERT) program conducted by NASA, was initiated by John Mankins and lead by Joe Howell in March 1999 for the following purpose:* Perform design studies of selected flight… …   Wikipedia


Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.