Exploration

Picture a treasure hunter studying old maps, walking the terrain, and digging a few test pits before committing to a full excavation. Exploration is that same careful, risk laden search applied to oil and gas, the phase of activity focused purely on finding hydrocarbon deposits before anyone knows for certain whether they exist in commercial quantity.

Exploration typically begins with a seismic survey to map underground rock structures, followed by drilling an exploratory well, sometimes called a wildcat well, to physically test whether oil or gas is actually present. Most exploratory wells, even in promising areas, do not result in a commercial discovery, which is exactly why exploration is considered the highest risk, highest potential reward stage of the entire oil and gas value chain.

Every OALP or DSF block win an investor reads about begins its life right here, at the exploration stage, often years before any oil actually reaches a refinery.