Oil & Gas
Suspended Well — Written Off After Determination
Writing off a previously suspended exploratory well after management decides not to develop.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Dry Hole / E&E Write-Off Expense | Expense (+) | 18,000,000.00 | - |
| E&E Assets — Suspended Well | Asset (-) | - | 18,000,000.00 |
💡 Accountant's Note
Once management decides a suspended well is non-commercial or there is insufficient justification to continue, the E&E asset is written off immediately. Delayed write-offs are an audit risk area in the oil and gas sector.
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