Oil & Gas
Stratigraphic Test Well — Cost Treatment
Recording a well drilled purely to obtain geological information with no production intent.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Exploration Expense — Stratigraphic Test | Expense (+) | 3,500,000.00 | - |
| Cash / Accounts Payable (Drilling) | Asset/Liability (-) | - | 3,500,000.00 |
💡 Accountant's Note
Stratigraphic test wells drilled solely for geological data with no drilling intention beyond that purpose are expensed under successful efforts accounting. Under full cost accounting, they are capitalized to the cost pool.
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