What are the risks?
- The risk involved in searching for oil and gas reserves has been greatly reduced due to technological advances, such as 3-Dimensional seismic data and modern well completion techniques, however, there are inherent risks that should be recognized.
- Some risks are generally classifiable as unpredictable; natural events such as oil not present in the reservoir, the reservoir is flooded with water or the reservoir does not allow the oil to flow.
- Wells may not produce enough oil or gas to recover the cost of drilling and completing them.
- Every venture is entered into using estimates of the total cost to drill and complete a well. These estimates are drawn from our combined years of experience and with input from our service providers, however, even the best of estimates might not cover unexpected expenses such as drilling into a void or cavern into which we lose a large quantity of drilling fluid that must be replenished.