I am trying to understand SEC filings of various oil royalty trusts. To really understand what is going on with them, I need to know the answer to the question in the title. To expand on it a bit:
An oil well will obviously have high capital costs during drilling and completion, Later, it will continue to be capital costs, but after a point they will become much lower and sporadic, as opposed to the early high level.
My question is, once an oil well has started producing, are the expensive early capital costs done with? Or do they frequently continue?
I am asking as a general matter. I realize there can be exceptions. Those don't presently interest me. I am asking about what usually happens.