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. Risk Exposure : While investing in royalties can offer steady income streams, it also exposes investors to certain risks.

Royalty 52

Royalty Oil Gas Exploration and Production 52

The Energy Law

JUNE 2, 2017

In its reasoning on defendants’ alternative causation theory, the appellate court criticized the defendants’ failure to either continue to drill the well themselves and/or visit the well site to determine the cause of the excessive mud loss (what defendants contended was the result of a hole in the formation) at over 13,000 feet.

Casing 40

Casing Oil Dry Hole Manufacturing 40

The Energy Law

APRIL 30, 2020

The well was a dry hole, however, and was therefore plugged and abandoned on April 21, 2006. While the long-term fallout from the recent decline in oil prices and the COVID-19 pandemic remains unclear, it is clear that drilling activity has already started to decline. Cannisnia Plantation, LLC v. A well was spud on March 28, 2006.

Operator 40

Operator Spud-in Dry Hole Oil 40

Aresco

DECEMBER 17, 2024

Dry holeswhere no commercially viable oil or gas is foundare a real possibility. 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. Exploration Risks: Drilling for oil and natural gas is not a guaranteed success.

Crude Oil 52

Crude Oil Oil Exploration and Production Natural Gas 52