Finding And Development (F&D)

Finding and development (F&D) refers to costs incurred when a company purchases, researches and develops properties in an effort to establish commodity reserves. Exploration and development businesses rely on finding commodities to manufacture and sell. Finding and development costs represent a cost of doing business for these types of companies. The costs are calculated by dividing the costs incurred during a period of time by the number of commodities found during that same time. Oil is usually measured in barrels; gas is often measured by a given quantity of cubic feet.

Finding and development costs are also known as finding costs.

While the term finding and development can relate to costs incurred by any type of commodity company, it is commonly used in regards to the upstream costs of an oil or gas business. In this case, the costs of finding and development can be expressed per barrel. Finding costs are calculated over a given period of time. During that period, the amount of money spent to locate additional commodity reserves is tallied then divided by the additional quantity of reserves actually discovered during that same time period.