Big gamble can yield bigger payoff

ABOARD THE DISCOVERER DEEP SEAS

…Exploratory wells, known in the industry as “wildcat” wells, assess whether oil exists in a field. Subsequent appraisal wells help gauge how much.

Exploratory wells take several months to drill, and 65 percent or more fail. Koen projects a 1-in-12 chance of success in the Bob North field probe.

Chevron spends $500,000 to $850,000 a day to lease the Discoverer Deep Seas. The daily cost depends on how much hardware, what type of work, and how many people are needed on a given day.

The well will cost about $100 million, regardless of whether it produces oil.

Houston Chronicle