PETD » Topics » Working interest

These excerpts taken from the PETD 10-K filed Feb 27, 2009.
working interest.  With respect to wells in which we own an interest of less than 100%, we charge the other working interest owners, including our drilling partnerships, a competitive fee for operating the well and transporting natural gas.  Our well operations and pipeline income segment represented approximately 2% of our income before income taxes for the year ended December 31, 2008.


Oil and Gas Well Drilling Operations

   Our drilling and development segment reflects results of drilling and development activities conducted for affiliated and non-affiliated parties.  Historically, we have engaged in these activities primarily through sponsoring drilling partnerships, which allowed us to share the risks and costs inherent in drilling and development operations with our investor partners.  Beginning with our third sponsored drilling partnership in 2005, we have drilled partnership wells on a “cost-plus” basis, which means that we bill our investor partners for the actual drilling costs plus a fixed drilling fee.  Prior to our cost-plus drilling arrangements, drilling was conducted on a “footage” basis, where the Company bore the risk of changes in costs.  In addition, we have typically purchased a 20% to 37% working interest in the wells developed through these partnerships.  In September 2006, we raised approximately $90 million through investor subscriptions in one drilling partnership, and in August 2007, we raised approximately $90 million through an additional drilling partnership.

   Our oil and gas well drilling segment represented approximately 3% of our income before income taxes for the year ended December 31, 2008.  In January 2008, we announced that we did not plan to sponsor new drilling partnerships in 2008.  However, a portion of the funds available for drilling from the 2007 partnership were advanced and unexpended at the end of 2007.   The majority of these funds were used in 2008 for drilling and
working
interest
.  With respect to wells in which we own an interest of
less than 100%, we charge the other working interest owners, including our
drilling partnerships, a competitive fee for operating the well and transporting
natural gas.  Our well operations and pipeline income segment
represented approximately 2% of our income before income taxes for the year
ended December 31, 2008.




Oil
and Gas Well Drilling Operations



  
Our drilling and development segment reflects results of drilling and
development activities conducted for affiliated and non-affiliated
parties.  Historically, we have engaged in these activities primarily
through sponsoring drilling partnerships, which allowed us to share the risks
and costs inherent in drilling and development operations with our investor
partners.  Beginning with our third sponsored drilling partnership in
2005, we have drilled partnership wells on a “cost-plus” basis, which means that
we bill our investor partners for the actual drilling costs plus a fixed
drilling fee.  Prior to our cost-plus drilling arrangements, drilling
was conducted on a “footage” basis, where the Company bore the risk of changes
in costs.  In addition, we have typically purchased a 20% to 37%
working interest in the wells developed through these
partnerships.  In September 2006, we raised approximately $90 million
through investor subscriptions in one drilling partnership, and in August 2007,
we raised approximately $90 million through an additional drilling
partnership.



  
Our oil and gas well drilling segment represented approximately 3% of our income
before income taxes for the year ended December 31, 2008.  In January
2008, we announced that we did not plan to sponsor new drilling partnerships in
2008.  However, a portion of the funds available for drilling from the
2007 partnership were advanced and unexpended at the end of
2007.   The majority of these funds were used in 2008 for
drilling and
Working interest - An interest in an oil and gas lease that gives the owner of the interest the right to drill for and produce oil and gas on the leased acreage and requires the owner to pay a share of the costs of drilling and production operations.  The share of production to which a working interest is entitled will be smaller than the share of costs that the working interest owner is required to bear to the extent of any royalty burden.

Working interest - An interest
in an oil and gas lease that gives the owner of the interest the right to drill
for and produce oil and gas on the leased acreage and requires the owner to pay
a share of the costs of drilling and production operations.  The share
of production to which a working interest is entitled will be smaller than the
share of costs that the working interest owner is required to bear to the extent
of any royalty burden.



These excerpts taken from the PETD 10-K filed Mar 20, 2008.
Working interest - An interest in an oil and gas lease that gives the owner of the interest the right to drill for and produce oil and gas on the leased acreage and requires the owner to pay a share of the costs of drilling and production operations.  The share of production to which a working interest is entitled will be smaller than the share of costs that the working interest owner is required to bear to the extent of any royalty burden.

Working
interest
- An interest in an oil and gas lease that gives the owner of
the interest the right to drill for and produce oil and gas on the leased
acreage and requires the owner to pay a share of the costs of drilling and
production operations.  The share of production to which a working
interest is entitled will be smaller than the share of costs that the working
interest owner is required to bear to the extent of any royalty
burden.





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