Upon hardening, the cement holds the pipe in place and prevents fluid movement in the hole. A well which is capable of producing enough products to pay for itself and give a profit to its owners. A general term referring to all activities necessary to put a well on production after it has been drilled to casing point. Geologists study this rock for signs of oil and gas as the well is drilled. The reduction in value of mineral deposits as it is produced.
Oil is a wasting asset, in that proceeds from the well represent both income and return of capital.
An allowance granted on taxable income from oil and gas by the Federal and most State Governments. The law is rather involved and a tax specialist should be used when computing the tax free portion of income. This information is supplied to each partner prior to filing his income tax returns on April 15th of each year. An accumulation of oil, gas or other minerals which is capable of production. A well drilled to a known producing formation in an existing oil field.