{"product_id":"exploration-drilling-running-expenses","title":"How To Calculate The Monthly Running Costs For Exploration Drilling","description":"\u003cdiv class=\"container_new_design\"\u003e\n\u003cdiv class=\"text-section text-1_new_design\"\u003e\n\u003cdiv class=\"line_top\"\u003e\u003c\/div\u003e\n\u003ch2\u003eExploration Drilling Running Costs\u003c\/h2\u003e\n\u003cp\u003eInitial fixed and payroll costs for Exploration Drilling start around $90,200 per month in 2026, before factoring in highly variable operational expenses like fuel and consumables This heavy equipment and service model demands significant upfront capital expenditure (CAPEX), totaling $3785 million for initial assets like the drilling rig and specialized vehicles Your total running budget must account for this high fixed base plus variable costs, which can consume up to 20% of revenue The financial model shows you hit breakeven relatively fast, within 4 months (April 2026), but you must defintely manage a maximum cash draw of $2563 million by June 2026 This guide breaks down the seven core recurring expenses—from specialized payroll to insurance and R\u0026amp;D leases—to help founders manage working capital and achieve the projected $1837 million EBITDA in the first year\n\u003c\/p\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"image-section image-1_new_design\" id=\"main_article_image\"\u003e\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\n\u003ch2\u003e\n\u003cspan style=\"color: #6067F2;\"\u003e7 Operational Expenses to Run \u003c\/span\u003eExploration Drilling\u003c\/h2\u003e\u003cbr\u003e\n\u003ctable id=\"dwnld_tbl_id\"\u003e\n\u003ctr\u003e\n\u003cth\u003e#\u003c\/th\u003e\n\u003cth\u003eOperating Expense\u003c\/th\u003e\n\u003cth\u003eExpense Category\u003c\/th\u003e\n\u003cth\u003eDescription\u003c\/th\u003e\n\u003cth\u003eMin Monthly Amount\u003c\/th\u003e\n\u003cth\u003eMax Monthly Amount\u003c\/th\u003e\n\u003c\/tr\u003e\n\u003ctr\u003e\n\u003ctd\u003e1\u003c\/td\u003e\n\u003ctd\u003eSpecialized Payroll\u003c\/td\u003e\n\u003ctd\u003ePersonnel\u003c\/td\u003e\n\u003ctd\u003eInitial monthly payroll covers 75 FTE roles, including the $15,000 CEO\/Lead Geologist salary.\u003c\/td\u003e\n\u003ctd\u003e$70,416\u003c\/td\u003e\n\u003ctd\u003e$70,416\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr\u003e\n\u003ctd\u003e2\u003c\/td\u003e\n\u003ctd\u003eOffice Rent\u003c\/td\u003e\n\u003ctd\u003eFacilities\u003c\/td\u003e\n\u003ctd\u003eFixed monthly cost for administrative office space and facilities.\u003c\/td\u003e\n\u003ctd\u003e$5,000\u003c\/td\u003e\n\u003ctd\u003e$5,000\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr\u003e\n\u003ctd\u003e3\u003c\/td\u003e\n\u003ctd\u003eInsurance \u0026amp; Permits\u003c\/td\u003e\n\u003ctd\u003eCompliance\u003c\/td\u003e\n\u003ctd\u003eFixed monthly cost for liability, equipment, and required operational permits.\u003c\/td\u003e\n\u003ctd\u003e$2,500\u003c\/td\u003e\n\u003ctd\u003e$2,500\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr\u003e\n\u003ctd\u003e4\u003c\/td\u003e\n\u003ctd\u003eR\u0026amp;D Leases\u003c\/td\u003e\n\u003ctd\u003eFixed Overhead\u003c\/td\u003e\n\u003ctd\u003eFixed expenses for specialized R\u0026amp;D, like lab or software leases.\u003c\/td\u003e\n\u003ctd\u003e$4,000\u003c\/td\u003e\n\u003ctd\u003e$4,000\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr\u003e\n\u003ctd\u003e5\u003c\/td\u003e\n\u003ctd\u003eVehicle Leases\u003c\/td\u003e\n\u003ctd\u003eLogistics\u003c\/td\u003e\n\u003ctd\u003eLeasing costs for corporate vehicles essential for site visits and logistics.\u003c\/td\u003e\n\u003ctd\u003e$3,500\u003c\/td\u003e\n\u003ctd\u003e$3,500\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr\u003e\n\u003ctd\u003e6\u003c\/td\u003e\n\u003ctd\u003eConsumables\u003c\/td\u003e\n\u003ctd\u003eVariable COGS\u003c\/td\u003e\n\u003ctd\u003eVariable costs covering drill bits, casings, and immediate field repairs.\u003c\/td\u003e\n\u003ctd\u003e$0\u003c\/td\u003e\n\u003ctd\u003e$0\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr\u003e\n\u003ctd\u003e7\u003c\/td\u003e\n\u003ctd\u003eFuel \u0026amp; Mobilization\u003c\/td\u003e\n\u003ctd\u003eVariable COGS\u003c\/td\u003e\n\u003ctd\u003eFuel, lubricants, and logistics costs calculated as a percentage of revenue.\u003c\/td\u003e\n\u003ctd\u003e$0\u003c\/td\u003e\n\u003ctd\u003e$0\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr\u003e\n\u003ctd\u003e\u003c\/td\u003e\n\u003ctd\u003eTotal\u003c\/td\u003e\n\u003ctd\u003eAll Operating Expenses\u003c\/td\u003e\n\u003ctd\u003e\u003c\/td\u003e\n\u003ctd\u003e$85,416\u003c\/td\u003e\n\u003ctd\u003e$85,416\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003c\/table\u003e\n\u003cdiv class=\"dwnld_btn_div\"\u003e\u003cbutton id=\"dwnld_btn_id\" class=\"dwnld_btn_clss\"\u003eDownload Table in XLSX\u003c\/button\u003e\u003c\/div\u003e\u003cbr\u003e\u003cbr\u003e\u003cbr\u003e \u003ch2\u003e\u003cspan style=\"color: #126CFF;\"\u003eWhat is the minimum sustainable monthly operating budget required to run Exploration Drilling?\n\u003c\/span\u003e\u003c\/h2\u003e\n\u003cp\u003eThe minimum sustainable monthly operating budget for Exploration Drilling starts at a baseline burn rate of \u003cstrong\u003e$90,216\u003c\/strong\u003e, combining fixed costs and initial staffing needs, which is a crucial number to track before diving into whether \u003ca href=\"\/blogs\/profitability\/exploration-drilling\"\u003eIs Exploration Drilling Business Currently Generating Sufficient Profitability?\u003c\/a\u003e. This figure represents the absolute floor you must cover monthly just to keep the lights on and the core team paid, based on the provided initial estimates.\u003c\/p\u003e\n\u003cdiv class=\"container_2_clmn_row\"\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-colons-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eBaseline Cost Breakdown\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eFixed overhead expenses total \u003cstrong\u003e$19,800\u003c\/strong\u003e monthly.\u003c\/li\u003e\n\u003cli\u003eInitial payroll commitment is set at \u003cstrong\u003e$70,416\u003c\/strong\u003e per month.\u003c\/li\u003e\n\u003cli\u003eThis sum establishes the minimum required monthly outlay.\u003c\/li\u003e\n\u003cli\u003eYou must generate revenue exceeding \u003cstrong\u003e$90,216\u003c\/strong\u003e to be cash flow positive.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-intro-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eOperational Thresholds\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eRevenue depends entirely on billable hours per contract.\u003c\/li\u003e\n\u003cli\u003eSlow client onboarding directly impacts cash reserves defintely.\u003c\/li\u003e\n\u003cli\u003eYou need high utilization rates immediately after hiring staff.\u003c\/li\u003e\n\u003cli\u003eTarget contracts that cover payroll within the first 30 days.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\n\u003ch2\u003e\u003cspan style=\"color: #126CFF;\"\u003eWhich recurring cost categories represent the largest percentage of total monthly spend?\n\u003c\/span\u003e\u003c\/h2\u003e\n\u003cp\u003eThe largest recurring costs for Exploration Drilling are specialized payroll and equipment operation, which together often exceed \u003cstrong\u003e75%\u003c\/strong\u003e of total spend, making operational efficiency critical; you can review current sector profitability trends here: \u003ca href=\"\/blogs\/profitability\/exploration-drilling\"\u003eIs Exploration Drilling Business Currently Generating Sufficient Profitability?\u003c\/a\u003e\u003c\/p\u003e\n\u003cdiv class=\"container_2_clmn_row\"\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-intro-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eDirect Operational Spend\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eSpecialized payroll for drill crews and engineers often hits \u003cstrong\u003e45%\u003c\/strong\u003e of total monthly spend.\u003c\/li\u003e\n\u003cli\u003eEquipment maintenance and fuel, being variable, typically account for another \u003cstrong\u003e30%\u003c\/strong\u003e of costs.\u003c\/li\u003e\n\u003cli\u003eHigh utilization is key; idle time immediately erodes contribution margin.\u003c\/li\u003e\n\u003cli\u003eThis cost structure defintely favors high-volume contract execution.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-colons-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eFixed Commitments \u0026amp; Risk\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eFixed overhead—rent, leases for heavy machinery, and insurance—usually sits around \u003cstrong\u003e15%\u003c\/strong\u003e.\u003c\/li\u003e\n\u003cli\u003eThese costs must be covered regardless of daily job volume.\u003c\/li\u003e\n\u003cli\u003eHigh fixed costs mean break-even volume is significant.\u003c\/li\u003e\n\u003cli\u003eInsurance premiums for specialized drilling liability are non-negotiable operating expenses.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\n\u003ch2\u003e\u003cspan style=\"color: #126CFF;\"\u003eHow much working capital or cash buffer is needed to cover costs until the projected breakeven date?\n\u003c\/span\u003e\u003c\/h2\u003e\n\u003cp\u003eFor Exploration Drilling, you must defintely secure financing to cover the \u003cstrong\u003e$2,563 million\u003c\/strong\u003e peak negative cash flow period, aiming for a buffer that sustains operations for \u003cstrong\u003e6 to 12 months\u003c\/strong\u003e post-launch. If you're planning your initial outlay, you might want to review the necessary steps first: \u003ca href=\"\/blogs\/how-to-open\/exploration-drilling\"\u003eHave You Considered The Necessary Permits And Equipment For Launching Exploration Drilling?\u003c\/a\u003e\u003c\/p\u003e\n\u003cdiv class=\"container_2_clmn_row\"\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-colons-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eMax Burn Rate Reality\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eThe highest projected cash deficit requiring funding is \u003cstrong\u003e$2,563 million\u003c\/strong\u003e.\u003c\/li\u003e\n\u003cli\u003eThis number shows the maximum amount of cash the business will need before it becomes cash-flow positive.\u003c\/li\u003e\n\u003cli\u003eYou must have this capital secured before starting major operational expenditures.\u003c\/li\u003e\n\u003cli\u003eThis assumes the projected timeline to breakeven holds true.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-intro-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eOperational Runway Target\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eAlways target securing capital for a \u003cstrong\u003e12-month\u003c\/strong\u003e operational runway.\u003c\/li\u003e\n\u003cli\u003eA \u003cstrong\u003e6-month\u003c\/strong\u003e minimum runway covers unexpected delays in securing major contracts.\u003c\/li\u003e\n\u003cli\u003eThis buffer covers all fixed overhead costs during the initial ramp-up phase.\u003c\/li\u003e\n\u003cli\u003eMore runway means less pressure to accept unfavorable contract terms early on.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\n\u003ch2\u003e\u003cspan style=\"color: #126CFF;\"\u003eIf initial project revenue is 30% below forecast, how will we cover fixed costs and avoid equipment downtime?\n\u003c\/span\u003e\u003c\/h2\u003e\n\u003cp\u003eIf Exploration Drilling revenue lands \u003cstrong\u003e30% below\u003c\/strong\u003e forecast, your immediate priority is freezing discretionary spending while securing short-term liquidity to cover overhead and keep rigs running.\u003c\/p\u003e\n\u003cdiv class=\"container_2_clmn_row\"\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-intro-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eStop Non-Essential Burn\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eDelay any fixed R\u0026amp;D expenses not tied to current contracts.\u003c\/li\u003e\n\u003cli\u003eCut customer acquisition marketing by at least \u003cstrong\u003e40%\u003c\/strong\u003e temporarily.\u003c\/li\u003e\n\u003cli\u003eReview all software subscriptions and defer non-critical upgrades.\u003c\/li\u003e\n\u003cli\u003eYour goal is to reduce the monthly fixed cost base by \u003cstrong\u003e10% to 15%\u003c\/strong\u003e fast.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-colons-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eSecure Bridge Financing\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eImmediately explore a working capital line of credit.\u003c\/li\u003e\n\u003cli\u003eA \u003cstrong\u003e30%\u003c\/strong\u003e revenue miss means you need \u003cstrong\u003ethree months\u003c\/strong\u003e of cash cushion ready.\u003c\/li\u003e\n\u003cli\u003eEquipment downtime is expensive; a stalled rig can cost \u003cstrong\u003e$15,000\u003c\/strong\u003e daily in lost revenue.\u003c\/li\u003e\n\u003cli\u003eYou need to know the full initial outlay, so review \u003ca href=\"\/blogs\/startup-costs\/exploration-drilling\"\u003eHow Much Does It Cost To Open, Start, And Launch Exploration Drilling Business?\u003c\/a\u003e to structure debt requests accurately.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\u003cbr\u003e \u003cdiv class=\"card_smpl\"\u003e\n\n\u003cdiv class=\"double_border\"\u003e\n\n\u003cdiv class=\"card_smpl_header\"\u003e\n\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-plus-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\n\u003ch3\u003eKey Takeaways\u003c\/h3\u003e\n\n\u003c\/div\u003e\n\n\u003cul class=\"lst_crct_blog\"\u003e\n\n\u003cli\u003eThe baseline monthly operating cost begins at $90,200, comprising $70,416 in specialized payroll and $19,800 in fixed overhead expenses.\u003c\/li\u003e\n\n\u003cli\u003eSecuring adequate working capital is critical, as the business requires a cash buffer to manage a maximum negative cash flow draw of $2.563 million before achieving breakeven in 4 months.\u003c\/li\u003e\n\n\u003cli\u003eVariable costs related to drilling consumables and fuel represent a major risk, projected to consume 200% of revenue during the initial 2026 operational phase.\u003c\/li\u003e\n\n\u003cli\u003eDespite the heavy initial capital expenditure ($3.785 million) and high burn rate, the operation is forecasted to generate $1.837 million in EBITDA within the first year.\u003c\/li\u003e\n\n\u003c\/ul\u003e\n\n\u003c\/div\u003e\n\n\u003c\/div\u003e\u003cbr\u003e\u003cbr\u003e\n\u003ch2\u003eRunning Cost 1\n: \u003cspan style=\"color: #126CFF;\"\u003eSpecialized Payroll \u0026amp; Wages\n\u003c\/span\u003e\n\u003c\/h2\u003e\u003cbr\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-colons-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eInitial Payroll Load\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eYour initial payroll commitment is \u003cstrong\u003e$70,416 monthly\u003c\/strong\u003e, funding \u003cstrong\u003e75 FTE roles\u003c\/strong\u003e immediately. This high fixed cost demands aggressive contract acquisition to maintain utilization.\u003c\/p\u003e\n\u003c\/div\u003e\u003cbr\u003e\u003cdiv class=\"container_2_clmn_row\"\u003e\n\u003cdiv class=\"card_smpl_2\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-tips-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003ePayroll Inputs\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eThis \u003cstrong\u003e$70,416\u003c\/strong\u003e payroll estimate covers \u003cstrong\u003e75 Full-Time Equivalent (FTE) roles\u003c\/strong\u003e needed to operate exploration drilling services. Crucially, this includes the \u003cstrong\u003e$15,000 per month\u003c\/strong\u003e salary for your CEO, who also acts as the Lead Geologist. This figure represents your required base operating expense floor for personnel costs.\u003c\/p\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eCalculate employer burden (taxes, benefits) on top of this base.\u003c\/li\u003e\n\u003cli\u003eEnsure the \u003cstrong\u003e$15k\u003c\/strong\u003e CEO salary aligns with market rates for Lead Geologists.\u003c\/li\u003e\n\u003cli\u003eTrack time allocation between administrative and billable site work.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-intro-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eManaging Headcount\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eManaging this large initial headcount requires strict control; hiring \u003cstrong\u003e75 people\u003c\/strong\u003e before securing significant contracts is risky. Focus on classifying roles accurately to manage the payroll tax burden, defintely avoid classifying specialized drillers as contractors unnecessarily. Stagger hiring past the core leadership team until utilization targets are met.\u003c\/p\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eUse contract labor for non-core support roles initially.\u003c\/li\u003e\n\u003cli\u003eBenchmark geologist wages against regional averages for the US market.\u003c\/li\u003e\n\u003cli\u003eTie performance bonuses to realized contract revenue, not just activity.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\u003cdiv class=\"card_smpl\"\u003e\u003cdiv class=\"double_border\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-pin-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eUtilization Driver\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eThis \u003cstrong\u003e$70,416\u003c\/strong\u003e fixed payroll dictates your minimum operational threshold. You must secure enough billable contracts quickly to ensure high utilization across those \u003cstrong\u003e75 roles\u003c\/strong\u003e; otherwise, personnel costs will quickly erode contribution margin from drilling jobs.\u003c\/p\u003e\n\u003c\/div\u003e\u003c\/div\u003e\u003cbr\u003e\u003cbr\u003e\n\u003ch2\u003eRunning Cost 2\n: \u003cspan style=\"color: #126CFF;\"\u003eOffice Rent \u0026amp; Facilities\n\u003c\/span\u003e\n\u003c\/h2\u003e\u003cbr\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-colons-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eFixed Overhead Anchor\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eYour administrative office space costs a predictable \u003cstrong\u003e$5,000\u003c\/strong\u003e monthly. This expense is defintely completely fixed, meaning it doesn't change whether you drill one well or twenty. This predictable overhead must be covered by your contract revenue before you see any operational profit.\u003c\/p\u003e\n\u003c\/div\u003e\u003cbr\u003e\u003cdiv class=\"container_2_clmn_row\"\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-tips-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eOffice Cost Breakdown\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eThis \u003cstrong\u003e$5,000\u003c\/strong\u003e covers base rent and utilities for the corporate office supporting management and sales. You need a signed lease agreement to lock this number in for modeling. It sits squarely in the fixed cost bucket, separate from variable drilling expenses like fuel or consumables.\u003c\/p\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eInput: Lease term length\u003c\/li\u003e\n\u003cli\u003eInput: Monthly square footage rate\u003c\/li\u003e\n\u003cli\u003eBudget role: Base operating expense\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"card_smpl_2\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-intro-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eControlling Real Estate\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eSince this cost is fixed, savings come from negotiation or downsizing early on. Avoid signing a lease longer than 18 months initially. If you scale fast, moving might be cheaper than subleasing unused space later. We see companies saving \u003cstrong\u003e10% to 20%\u003c\/strong\u003e by using flexible office space instead of traditional leases.\u003c\/p\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eNegotiate tenant improvement allowances\u003c\/li\u003e\n\u003cli\u003eScrutinize utility inclusion in rent\u003c\/li\u003e\n\u003cli\u003eAvoid long-term commitments\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\u003cdiv class=\"card_smpl\"\u003e\u003cdiv class=\"double_border\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-pin-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eBreak-Even Impact\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eBecause this \u003cstrong\u003e$5,000\u003c\/strong\u003e is guaranteed monthly, it directly increases your break-even revenue target. If your contribution margin per contract is tight, you need more volume just to cover this administrative floor. This cost exists even if drilling activity stops for a month.\u003c\/p\u003e\n\u003c\/div\u003e\u003c\/div\u003e\u003cbr\u003e\u003cbr\u003e\n\u003ch2\u003eRunning Cost 3\n: \u003cspan style=\"color: #126CFF;\"\u003eBusiness Insurance \u0026amp; Permits\n\u003c\/span\u003e\n\u003c\/h2\u003e\u003cbr\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-colons-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eInsurance \u0026amp; Permits Fixed Cost\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eFor high-risk exploration drilling, budget a fixed \u003cstrong\u003e$2,500 per month\u003c\/strong\u003e for insurance and necessary operational permits. This covers essential liability protection and the compliance costs required before you can legally start fieldwork.\u003c\/p\u003e\n\u003c\/div\u003e\u003cbr\u003e\u003cdiv class=\"container_2_clmn_row\"\u003e\n\u003cdiv class=\"card_smpl_2\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-tips-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eCost Breakdown\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eThis \u003cstrong\u003e$2,500\u003c\/strong\u003e monthly spend is fixed overhead, covering general liability, specialized equipment insurance, and the permits needed for drilling operations. It's a baseline cost that must be covered regardless of revenue generation in 2026. This cost is separate from the massive variable costs later on.\u003c\/p\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eCovers operational liability coverage.\u003c\/li\u003e\n\u003cli\u003eIncludes specific equipment protection policies.\u003c\/li\u003e\n\u003cli\u003eFunds required federal and state permits.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-intro-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eControlling Compliance\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eYou can't cut liability, but you can manage permit timing. Ensure you secure quotes from brokers specializing in energy or mining insurance; general brokers may miss key exclusions. If onboarding takes 14+ days, churn risk rises due to delays. You should defintely bundle policies for better rates.\u003c\/p\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eShop policies based on asset value.\u003c\/li\u003e\n\u003cli\u003eAvoid delays in permit applications.\u003c\/li\u003e\n\u003cli\u003eReview coverage annually for changes.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\u003cdiv class=\"card_smpl\"\u003e\u003cdiv class=\"double_border\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-pin-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eActionable Insight\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eIf you start servicing clients in multiple states, permit costs will compound quickly. Confirm your contracts with junior exploration firms clearly define who pays for site-specific environmental impact permits, as those often fall outside standard fixed operational costs.\u003c\/p\u003e\n\u003c\/div\u003e\u003c\/div\u003e\u003cbr\u003e\u003cbr\u003e\n\u003ch2\u003eRunning Cost 4\n: \u003cspan style=\"color: #126CFF;\"\u003eR\u0026amp;D Fixed Expenses \u0026amp; Leases\n\u003c\/span\u003e\n\u003c\/h2\u003e\u003cbr\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-colons-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eR\u0026amp;D Lease Commitment\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eSpecialized R\u0026amp;D leases, covering labs or necessary software platforms, are a fixed overhead of \u003cstrong\u003e$4,000 per month\u003c\/strong\u003e. This cost hits your bottom line regardless of drilling volume, so it must be prioritized in your initial revenue targets.\u003c\/p\u003e\n\u003c\/div\u003e\u003cbr\u003e\u003cdiv class=\"container_2_clmn_row\"\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-tips-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eCost Inputs\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eThis \u003cstrong\u003e$4,000\u003c\/strong\u003e covers leases for specialized lab space or critical software licenses supporting the AI data analysis mentioned in your UVP. Since this is a fixed cost, it must be covered by operational revenue before variable costs like fuel or labor. Here’s the quick math: this is \u003cstrong\u003e$48,000\u003c\/strong\u003e annually added to baseline overhead.\u003c\/p\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eGet quotes for lab space.\u003c\/li\u003e\n\u003cli\u003eConfirm annual software fees.\u003c\/li\u003e\n\u003cli\u003eCompare against $70,416 payroll.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"card_smpl_2\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-intro-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eManaging Fixed Space\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eTo manage this fixed commitment, push for usage-based pricing on software rather than large upfront annual payments. For physical space, explore shared facilities or co-working arrangements to defintely defer locking into a \u003cstrong\u003elong-term lease\u003c\/strong\u003e until revenue stabilizes. You want flexibility here.\u003c\/p\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eNegotiate shorter lease terms.\u003c\/li\u003e\n\u003cli\u003eSeek pay-per-use software models.\u003c\/li\u003e\n\u003cli\u003eAudit software utilization monthly.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\u003cdiv class=\"card_smpl\"\u003e\u003cdiv class=\"double_border\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-pin-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eOverhead Absorption Risk\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eThis \u003cstrong\u003e$4,000\u003c\/strong\u003e R\u0026amp;D fixed expense must be covered by your high-margin service revenue, not variable activity. If your initial contracts don't generate enough contribution margin after covering the \u003cstrong\u003e$70,416\u003c\/strong\u003e payroll, this lease becomes an immediate cash drain.\u003c\/p\u003e\n\u003c\/div\u003e\u003c\/div\u003e\u003cbr\u003e\u003cbr\u003e\n\u003ch2\u003eRunning Cost 5\n: \u003cspan style=\"color: #126CFF;\"\u003eCorporate Vehicle Leases\n\u003c\/span\u003e\n\u003c\/h2\u003e\u003cbr\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-colons-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eFixed Lease Overhead\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eCorporate vehicle leases represent a predictable \u003cstrong\u003e$3,500\u003c\/strong\u003e monthly fixed cost essential for logistics and site visits. This expense underpins necessary field mobility for your exploration teams, regardless of how many drill rigs are running that month.\u003c\/p\u003e\n\u003c\/div\u003e\u003cbr\u003e\u003cdiv class=\"container_2_clmn_row\"\u003e\n\u003cdiv class=\"card_smpl_2\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-tips-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eLease Cost Drivers\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eThis \u003cstrong\u003e$3,500\u003c\/strong\u003e covers leases for vehicles supporting site visits and logistics, like moving geologists or supervisors. It’s a fixed operating expense, not tied to drilling volume. If you have \u003cstrong\u003ethree\u003c\/strong\u003e trucks leased at $1,166 each, that confirms the total monthly commitment.\u003c\/p\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eFixed monthly payment structure\u003c\/li\u003e\n\u003cli\u003eCovers site mobility needs\u003c\/li\u003e\n\u003cli\u003eNon-negotiable until term ends\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-intro-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eFleet Management\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eTo manage this fixed spend, rigorously audit fleet necessity against current project load. Don't lease extra capacity anticipating future growth you haven't secured yet. It's defintely better to slightly under-lease than over-lease early on.\u003c\/p\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eAudit usage every quarter\u003c\/li\u003e\n\u003cli\u003eNegotiate longer terms upfront\u003c\/li\u003e\n\u003cli\u003eAvoid penalty buyouts\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\u003cdiv class=\"card_smpl\"\u003e\u003cdiv class=\"double_border\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-pin-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eBreak-Even Impact\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eThis fixed \u003cstrong\u003e$3,500\u003c\/strong\u003e directly pressures your contribution margin until you cover it, along with $25,916 in other fixed OPEX (excluding payroll). Every day you don't bill, this cost accrues, demanding immediate revenue coverage from active drilling contracts.\u003c\/p\u003e\n\u003c\/div\u003e\u003c\/div\u003e\u003cbr\u003e\u003cbr\u003e\n\u003ch2\u003eRunning Cost 6\n: \u003cspan style=\"color: #126CFF;\"\u003eDrilling Consumables \u0026amp; Minor Repairs\n\u003c\/span\u003e\n\u003c\/h2\u003e\u003cbr\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-colons-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eConsumables Sink Margin\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eDrilling consumables and field repairs are projected to cost \u003cstrong\u003e120% of revenue\u003c\/strong\u003e in 2026, meaning every dollar earned immediately loses 20 cents before accounting for payroll or overhead. This variable cost structure, covering essential items like drill bits and casings, makes profitability impossible without drastic operational changes or immediate price increases.\u003c\/p\u003e\n\u003c\/div\u003e\u003cbr\u003e\u003cdiv class=\"container_2_clmn_row\"\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-tips-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eInputs for Repair Costs\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eThis cost line item bundles necessary wear-and-tear items. To model this accurately, you need projected drilling footage rates, expected bit lifespan in different geological zones, and quoted prices for replacement casings. If you plan \u003cstrong\u003e500,000 feet\u003c\/strong\u003e of drilling in 2026, you must map those feet to expected consumable units. Honestly, 120% is high.\u003c\/p\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eTrack bit consumption per foot.\u003c\/li\u003e\n\u003cli\u003eQuote casing costs quarterly.\u003c\/li\u003e\n\u003cli\u003eFactor in emergency field labor.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"card_smpl_2\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-intro-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eOptimize Field Spend\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eManaging costs above 100% of revenue requires aggressive procurement and process discipline. Focus on extending the life of high-cost items like specialized drill bits through optimized drilling speeds, not just cheaper sourcing. A common mistake is not tracking repair costs separately from material costs. Better field maintenance could cut immediate repairs by \u003cstrong\u003e15%\u003c\/strong\u003e.\u003c\/p\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eNegotiate bulk pricing for casings.\u003c\/li\u003e\n\u003cli\u003eImplement preventative maintenance schedules.\u003c\/li\u003e\n\u003cli\u003eReview bit metallurgy specs.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\u003cdiv class=\"card_smpl\"\u003e\u003cdiv class=\"double_border\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-pin-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eTotal Cost Headroom\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eGiven that fuel and mobilization already hit \u003cstrong\u003e140% of revenue\u003c\/strong\u003e (80% + 60%), adding another 120% for consumables pushes total direct costs to \u003cstrong\u003e260% of revenue\u003c\/strong\u003e in 2026. Your pricing model must reflect a massive markup over these operational inputs just to cover payroll, or you’ll defintely burn cash fast.\u003c\/p\u003e\n\u003c\/div\u003e\u003c\/div\u003e\u003cbr\u003e\u003cbr\u003e\n\u003ch2\u003eRunning Cost 7\n: \u003cspan style=\"color: #126CFF;\"\u003eFuel, Lubricants, \u0026amp; Mobilization\n\u003c\/span\u003e\n\u003c\/h2\u003e\u003cbr\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-colons-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eCost Structure Shock\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eYour cost structure for 2026 is dominated by variable operational expenses. Fuel, lubricants, and site mobilization together consume \u003cstrong\u003e140% of expected revenue\u003c\/strong\u003e. This means, before factoring in payroll or fixed overhead, you are already operating at a significant loss based on current revenue assumptions. That’s a major red flag for any operator.\u003c\/p\u003e\n\u003c\/div\u003e\u003cbr\u003e\u003cdiv class=\"container_2_clmn_row\"\u003e\n\u003cdiv class=\"card_smpl_2\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-tips-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eCost Drivers\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eThis category includes two major components: \u003cstrong\u003e80% for fuel and lubricants\u003c\/strong\u003e and \u003cstrong\u003e60% for project mobilization and logistics\u003c\/strong\u003e, both as a percentage of revenue in 2026. Estimating this requires tracking actual drill hours and the distance\/frequency of moving equipment between sites. If revenue projections drop, this 140% cost scales down proportionally, but the baseline expense remains high.\u003c\/p\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eProjected billable drilling hours.\u003c\/li\u003e\n\u003cli\u003eAverage fuel burn rate per hour.\u003c\/li\u003e\n\u003cli\u003eMobilization frequency per contract.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-intro-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eCost Control Levers\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eManaging 140% of revenue in costs requires aggressive contracting and route planning. Since mobilization is a fixed percentage of revenue, efficiency gains in logistics directly improve margin. You must negotiate bulk fuel purchasing contracts immediately, locking in rates well below spot market prices. Honestly, this cost structure is unsustainable without major operational changes.\u003c\/p\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eBulk fuel purchase agreements.\u003c\/li\u003e\n\u003cli\u003eOptimize mobilization routes pre-contract.\u003c\/li\u003e\n\u003cli\u003eReview logistics subcontractor bids quarterly.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\u003cdiv class=\"card_smpl\"\u003e\u003cdiv class=\"double_border\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-pin-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eMargin Reality Check\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eWhen you combine this \u003cstrong\u003e140%\u003c\/strong\u003e operational spend with the \u003cstrong\u003e120%\u003c\/strong\u003e for consumables and minor repairs (Running Cost 6), your gross margin is negative before accounting for the $100k in fixed overhead. This indicates that the current revenue model, priced on billable hours, does not cover the true cost of delivering the service.\u003c\/p\u003e\n\u003c\/div\u003e\u003c\/div\u003e\u003cbr\u003e\u003cbr\u003e\u003cbr\u003e","brand":"FinancialModelsLab","offers":[{"title":"Default Title","offer_id":49303746281715,"sku":"exploration-drilling-running-expenses","price":0.0,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0522\/6191\/2762\/files\/exploration-drilling-running-expenses.webp?v=1782682285","url":"https:\/\/financialmodelslab.com\/products\/exploration-drilling-running-expenses","provider":"Financial Models Lab","version":"1.0","type":"link"}