Lease Operating Expenses (LOE)
LOE refers to the costs of operating the wells and equipment on a producing lease, many of which are recurring.
How it’s important to us
The term “LOE” is frequently used in the oil & gas business to talk about costs associated with a given well or lease. Often times, when there are multiple partners involved in the lease, the LOE is shared among the different parties, with the percentage of operating expenses each partner is responsible for represented by their “gross working interest” or GWI in the well.