What Is an Exploration Cost?

Exploration cost (exploration cost) is a general indicator for measuring the economic effects of mineral deposit exploration, and generally refers to the two aspects of exploration investment and the required investment in reserves. The former refers to how many reserves can be proven per average exploration cost (proven total reserves / total exploration investment); the latter refers to the average exploration costs (total exploration investment / proven total reserves) required for each ton of proven reserves. ^[1]

Exploration cost is a measure

Oil and gas exploration is based on certain geological units, and aims at the geological tasks or oil and gas reserves at different stages of exploration. It consists of geophysical and geochemical exploration, drilling, logging, logging, oil testing, and comprehensive geological research. About drilling, logging, well logging, oil testing and other engineering operations have been described in the cost calculation of drilling engineering. This section mainly describes the geological exploration cost accounting based on geophysical and geochemical exploration and comprehensive research.

Exploration Cost Costing Object

Geological exploration and construction activities generally involve several geological exploration teams using different exploration instruments in a geological unit to adopt different exploration methods, collect various geological data in the field, and then focus on indoor data processing and comprehensive research. Therefore, the costing of geological exploration should be classified according to exploration projects and work items, with single teams and research units as the costing objects.
An exploration project is an exploration project that aims to complete a certain geological task for a geological unit (basin, structure, area).
The work items can be specifically divided into geological surveys, geophysical surveys, geochemical surveys, and oil and gas geological studies according to different construction methods. In a work project, they are divided into two-dimensional earthquakes and three-dimensional earthquakes according to different working methods. , Gravity, magnetic force, electric method, remote sensing, etc.
If a geological exploration team operates for more than two exploration projects within a year, the cost should be listed separately in the relevant exploration project. ^[2]

Exploration Cost Cost Accounting

(1) Material cost accounting.
1. Materials used for geological exploration construction shall be strictly controlled according to the exploration tasks and consumption quotas. Teams and units must have a special person responsible for receiving materials and handle the collection procedures in accordance with regulations. The collection list must specify the collection unit and work item in order to correctly calculate the relevant costs.
2. Consumable materials can be calculated according to the planned cost. The difference between the planned cost and the actual cost should be apportioned to the material cost difference on a monthly basis.
3. The collection list should be collected and analyzed every month. Based on the team, the material consumption summary table should be compiled according to the specified cost items and included in the relevant costs.
4. The movable house, tent, and geophone used by the geological exploration team are part of the supplementary replacement and can be entered into the cost at one time; if they are all replaced, the cost should be amortized according to the use period.
5. At the end of the year or when the team or grass-roots unit receives work from the field and transfers the construction area, the remaining materials must be counted, return materials processed, and related costs reduced.

(Two) labor cost accounting

1. Labor costs include employees' salaries, bonuses, allowances and subsidies, as well as employee welfare fees drawn in accordance with regulations. The salaries of personnel who should not be included in construction costs according to regulations should not be included.
2. Each team and grassroots unit shall strictly check the attendance of personnel and establish a record of working hours. At the end of the month, a monthly report on the use of working hours shall be compiled to prepare a labor expense allocation table.
3. In the case of field operations where local migrant workers are temporarily employed, their labor costs shall also be counted as labor costs, but employee benefits shall not be accrued.

(3) Expense cost accounting 1. All expenses shall be strictly controlled in accordance with budget and expense quotas, and shall be calculated according to prescribed cost items.
2. Fixed assets should be depreciated in accordance with regulations, not more or less. The depreciation accrued shall be separately included in the relevant costs according to the unit using the fixed assets.
3. The cost of repairing fixed assets shall include the relevant costs. A large amount of overhaul costs incurred at one time can be amortized into costs monthly during the overhaul interval.
4. Management expenses shall be calculated according to the specified detailed items. The distribution of management costs can generally be based on the actual monthly work team monthly or the total salary of each team.
5. Data processing fees can be evenly divided into standard sheets according to different processing records. ^[2]