| Algal Mound |
A type of
biotherm formed from the buildup of algae deposits.
|
| Bcf. |
Billion cubic
feet of natural gas. |
| Bcfe. |
Billion cubic
feet of natural gas equivalent. |
| Bbl. |
One stock
tank barrel, or 42 U.S. gallons liquid volume, used herein in reference to
crude oil or other liquid hydrocarbons. |
| Commingled Well |
A well
producing from two or more formations through common well casing and a single
tubing string. |
| DD&A |
Depreciation,
depletion, and amortization. |
| Developed Acreage |
The number of
acres which are allocated or assignable to producing wells or wells capable of
production. |
| Development Well |
A well
drilled within the proved area of an oil or gas reservoir to the depth of a
stratigraphic horizon known to be productive. |
| Downdip Wells |
Wells
producing from deeper depths lower on a structure than updip wells. |
| Dry Hole |
Dry Well. A
well found to be incapable of producing either oil or gas in sufficient
quantities to justify completion as an oil or gas well. |
| Exploratory Well |
A well
drilled to find and produce oil or gas in an unproved area, to find a new
reservoir in a field previously found to be productive of oil or gas in another
reservoir, or to extend a known reservoir. |
| Finding Costs |
The capital
costs associated with finding and developing oil and gas reserves. |
| Formation |
An
identifiable single geologic horizon. |
| Fracture stimulation |
Action taken
to increase the inherent productivity of a prospective formation through the
hydraulic injection of water, diesel, or CO2 at high pressures and high rates.
|
| Full-cost Ceiling Test
Writedown |
A non-cash
charge to earnings as mandated by the Securities and Exchange Commission for
companies utilizing the full-cost method of accounting. Under the full-cost
method of accounting, all costs of acquisition, exploration and development of
oil and gas reserves are capitalized into a "full-cost pool" as incurred and
properties in the pool are depleted and charged to operations using the
unit-of-production method based on the ratio of current production to total
proved oil and gas reserves. To the extent that such capitalized costs (net of
accumulated depreciation, depletion, and amortization) less deferred taxes
exceed the present value of estimated future net cash flows from proved oil and
gas reserves and the lower of cost or fair value of unproved properties after
income tax effects, such earnings but would not have an impact on cash flows
from operating activities. Once incurred, a writedown of oil and gas properties
is not reversible at a later date, even if oil and gas prices subsequently
increase. |
| G&A Expenses |
General and
administrative expenses. |
| Gross Acres or Gross
Wells |
The total
acres or wells, as the case may be, in which a working interest is owned.
|
| Horizontal Wells |
Wells which
are drilled at angles greater than 70 from vertical. |
| Increased Density |
A well
drilled in addition to the number of wells permitted under normal spacing
regulations to accelerate recovery or prevent loss of reserves. |
| Independent Producer |
A
nonintegrated producer of oil and gas with no refining or retail marketing
operations. |
| Lease Operating
Expenses. |
The costs of
maintaining and operating property and equipment on a producing oil and gas
lease. |
| MBbls |
One thousand
barrels of oil. |
| Mcf. |
One thousand
cubic feet of natural gas. |
| MMcf. |
One million
cubic feet of natural gas. |
| MMcfe. |
One million
cubic feet of natural gas equivalent; a unit of measurement which combines oil,
natural gas liquids, and natural gas. Oil and natural gas liquids are converted
to natural gas based upon their relative energy content at the rate of 6 mcf
for each barrel of oil or natural gas liquids. |
| Operating Costs |
The sum of
lease operating costs, production taxes, G&A expenses, and oil and gas
depreciation, depletion, and amortization. |
| Net Acres or Net
Wells |
The sum of
the fractional working interest owned in gross acres or gross
wells. |
| Payzone |
The producing
formation(s) of a well. |
| Present Value |
When used
with respect to oil and gas reserves, present value is the estimated future
gross revenue to be generated from the production of proved reserves, net of
estimated production and future development costs, using prices and costs in
effect at the determination date, without giving effect to non-property related
expenses such as general and administrative expenses, debt service and future
income tax expense or to depreciation, depletion and amortization, discounted
using an annual discount rate of 10%. |
| Productive Well |
A well that
is producing oil or natural gas or that is capable of production. |
| Proved Developed
Reserves |
Reserves that
can be expected to be recovered through existing wells with existing equipment
and operating methods. |
| Proved Reserves |
The estimated
quantities of crude oil, natural gas and natural gas liquids which geological
and engineering data demonstrate with reasonable certainty to be recoverable in
future years from known reservoirs under existing economic and operating
conditions. |
| Proved Undeveloped
Location |
A site on
which a development well can be drilled consistent with spacing rules for
purposes of recovering proved undeveloped reserves. |
| Proved Undeveloped
Reserves |
Reserves that
are expected to be recovered from new wells drilled to a known reservoir(s) on
un-drilled acreage or from existing wells where a relatively major expenditure
is required for recompletion. |
| Reserve Life |
The term in
years required to deplete the company's proved oil and gas reserve base at
current production rates. |
| Royalty Interest |
An interest
in an oil and gas property entitling the owner to a share of oil or gas
production free of costs of production. |
| 3-D Seismic |
Advanced
technology method of detecting accumulations of hydrocarbons identified by the
collection and measurement of the intensity and timing of sound waves
transmitted into the earth as they reflect back to the surface. |
| Tcf. |
One trillion
cubic feet of natural gas. |
| Tcfe. |
One trillion
cubic feet of natural gas equivalent. |
| Undeveloped Acreage |
Lease acreage
on which wells have not been drilled or completed to a point that would permit
the production of commercial quantities of oil and gas regardless of whether
such acreage contains proved reserves. |
| Working Interest |
The operating
interest which gives the owner the right to drill, produce and conduct
operating activities on the property and a share of production. |
