A more thorough explanation:

Definition: Working capital refers to the amount of money a company has available to cover its day-to-day expenses and operations. It is calculated by subtracting a company's current liabilities from its current assets.

Example: If a company has $100,000 in current assets (such as cash, inventory, and accounts receivable) and $50,000 in current liabilities (such as accounts payable and short-term loans), its working capital would be $50,000.

This example illustrates how working capital is important for a company's financial health. Having enough working capital means that a company can pay its bills and continue operating smoothly, while a lack of working capital can lead to financial difficulties and even bankruptcy.

Working Interest: In the oil and gas industry, working interest refers to the rights granted by a lease to search for, develop, and produce oil and gas on a property. The lessee (the company or individual who holds the lease) is responsible for all costs associated with these activities.

Example: If a company holds a lease for an oil and gas property and has a 50% working interest, it means that they are responsible for paying 50% of the costs associated with exploring, drilling, and producing oil and gas on that property.

This example illustrates how working interest is a key concept in the oil and gas industry, as it determines who is responsible for the costs and risks associated with developing a property for oil and gas production.