Accredited Investor
Accredited Investor
In the U.S., subject to Rule 501 of Regulation D of the Securities Act of 1933, an accredited investor must meet specific criteria regarding his or her assets, income, net
worth, legal status and professional experience. Accredited investors can be individuals with high net worth or insurance companies, banks, brokers or trusts. An accredited investor is also known as a registered investor.
Authority for Expenditure (AFE)
Authority for Expenditure (AFE)
An authority for expenditure (AFE) is a type of budgeting form that includes the cost estimate for the well and incorporates the intangible and tangible drilling costs. It’s typically the final step in the well-planning process for a well that is ready for drilling.
Depletion Allowance
Depletion Allowance
Depletion allowance is a tax deduction allowed by the IRS to compensate for the “using up” of a natural resource such as oil, gas, timber or minerals. It is a way to recover costs for capital investments.