Oil & Gas 360º

APRIL 7, 2025

RRC figures show 1,072 new drills recorded during March (up 27.5%), including 818 oil wells, 246 gas wells and eight dry holes. This compares to 841 total new drills in February, including 682 oil wells, 142 gas wells and 17 dry holes. The figures a year ago included 689 oil wells, 183 gas wells and 19 dry holes.

Dry Hole 130

Dry Hole Oil Basin Gas 130

Aresco

APRIL 23, 2025

Drilling a dry hole can cost hundreds of millions of dollars. This helps teams assess risk more quantitatively. Deepwater Exploration Assistance Deepwater and ultra-deepwater environments are among the most complex and expensive areas to explore.

Exploration and Production 104

Exploration and Production Gas Oil Dry Hole 104

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.

Royalty 52

Royalty Gas Oil Exploration and Production 52

The Energy Law

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.

Casing 40

Casing Dry Hole Manufacturing Oil 40

The Energy Law

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.

Operator 40

Operator Dry Hole Spud-in Abandonment 40

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.

Crude Oil 52

Crude Oil Exploration and Production Oil Natural Gas 52