Dry Hole Related Topics 
Aresco
JULY 17, 2024
Since royalty owners do not bear the operating risks associated with drilling and production, they are insulated from potential cost overruns, dry holes, or operational issues that may arise.
The Energy Law Blog
JUNE 2, 2017
The appellate court also affirmed the trial court’s award of lost profits under the turnkey contract as consequential damages – rendering a decision that criticized defendants’ hypothesis that “some unknown and speculative intervening cause, i.e. a phantom hole in the formation ,” resulted in shutting in the well before completion.
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The Energy Law Blog
APRIL 30, 2020
The well was a dry hole, however, and was therefore plugged and abandoned on April 21, 2006. In January 2006, approximately 6 months before the servitude would expire for non-use, the mineral servitude owner conveyed the servitude to an affiliated business entity on the condition that it drill a well on the property by June 15, 2006.
Aresco
DECEMBER 17, 2024
Dry holeswhere no commercially viable oil or gas is foundare a real possibility. However, dry holes result in a tax write off of the amount invested. Even with advanced technology, there is always a risk that a well will fail to produce, resulting in losses and the opportunity for passive income.
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