Exploration & Evaluation Expenditure can be considered both an...

Exploration & Evaluation Expenditure can be considered both an expense and an asset depending on what has happened with the drill.

It would be an asset where it has been spent on a drill that is producing, and therefore the expenditure is entitled to be amortised or depreciated over the life of the well.

It would be expensed in situations where it is a duster, or the EEE is written down to its actual value.

That's from the accounting point of view anyway. I think that is what RRS have done in capitalising the expenditure anyway.