Legal Definitions - market value at the well

Definition:Market value at the well refers to the value of oil or gas at the place where it is sold, minus the reasonable cost of transporting it and processing it to make it marketable.

For example, if a barrel of oil is sold for $50 at the well, but it costs $5 to transport and process it, the market value at the well would be $45.

Definition: Market volume refers to the total number of shares traded on a stock exchange in one day or the total number of shares of one stock traded on one day.

For example, if 10 million shares of Apple stock are traded on the New York Stock Exchange in one day, the market volume for Apple stock on that day would be 10 million shares.

These examples illustrate how market value at the well and market volume are used in the oil and gas industry and stock market, respectively. Understanding these terms is important for investors and industry professionals to make informed decisions about buying and selling commodities and stocks.