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What are my risks associated with oil & gas?

Every project is different with widely differing probabilities of success; however, generally the following average probabilities apply:

 
If the project is an exploratory drilling venture, you should expect about a 10 to 20% probability of success. Some companies report “wildcat” success rates as high as 85% with the use of leading edge explorations technologies, but this is highly unusual.  
 
If the project is a developmental drilling venture, you should expect about an 80 to 90% probability of success. The probably of success of an in-fill drilling venture is usually over 95%.
If the project is already producing, you may expect about a 98% probability of success. No project should be undertaken with an expectation of 100% success. 
 
If the project is a well work-over project, you should expect about a 90 to 95% probability of success. 
It also helps to know the sponsoring company's success rate (hit to miss ratio).
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