Definition of Working Interest

Working interest is an interest that requires the holder to bear their proportional expenses and allows them to share in the revenue produced by an oil or gas project in relation to their interest.

Applying "Working Interest" to Securities Exams:

An investor in an direct participation program / DPP who is required to share the burden of the exploration and development expenses is said to have a working interest in the program. An investor who has a 20% working interest in a well would be required to absorb 20% of the program’s expenses and would receive 20% of the program’s income.

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