Exploratory Well is also known as wild catting. It is the drilling for oil or gas in new areas, seeking to find new wells.
Applying "Exploratory Well" to Securities Exams:
Exploring for oil and gas in unknown areas can be extremely risky. Most of the wells end up not producing otherwise known as dry holes. However the wells that do produce can be extremely profitable. It is this profit potential that makes it worth the risk for some investors.