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Before payout. With respect to
an oil or gas interest in a property, refers to the time period
before which the costs to drill and equip a well have been recovered.
Btu or British Thermal Unit. The
quantity of heat required to raise the temperature of one pound
of water by one degree Fahrenheit.
Completion. The installation of
permanent equipment for the production of oil or natural gas or,
in the case of a dry hole, the reporting of abandonment to the appropriate
agency.
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.
Dry hole or well. A well found
to be incapable of producing hydrocarbons in sufficient quantities
such that proceeds from the sale of such production exceed production
expenses and taxes.
Exploratory well. A well drilled
to find and produce oil or natural gas reserves not classified as
proved, to find a new reservoir in a field previously found to be
productive of oil or natural gas in another reservoir or to extend
a known reservoir.
Farm-in or farm-out. An agreement
where under the owner of a working interest in an oil and natural
gas lease assigns the working interest or a portion thereof to another
party who desires to drill on the leased acreage. Generally, the
assignee is required to drill one or more wells in order to earn
its interest in the acreage. The assignor usually retains a royalty
or reversionary interest in the lease. The interest received by
an assignee is a "farm-in" while the interest transferred by the
assignor is a "farm-out."
Field. An area consisting of a
single reservoir or multiple reservoirs all grouped on or related
to the same individual geological structural feature and/or stratigraphic
condition.
Finding costs. Costs associated
with acquiring and developing proved oil and natural gas reserves
which are capitalized by us pursuant to generally accepted accounting
principles, including all costs involved in acquiring acreage, geological
and geophysical work and the cost of drilling and completing wells.
Gross acres or gross wells. The
total acres or wells, as the case may be, in which a working interest
is owned.
MBbls. One thousand barrels of
oil or other liquid hydrocarbons.
MBbls/d. One thousand barrels of
oil or other liquid hydrocarbons per day.
Mcf. One thousand cubic feet of
natural gas.
Mcf/d. One thousand cubic feet
of natural gas per day.
Mcfe. One thousand cubic feet
equivalent, determined using the ratio of six Mcf of natural gas
to one Bbl of oil, condensate or natural gas liquids.
MMBbls. One million barrels of
oil or other liquid hydrocarbons.
MMBtu. One million British Thermal
Units. Mmcf. One million cubic feet.
MMcf/d. One million cubic feet
per day.
MMcfe. One million cubic feet equivalent,
determined using the ratio of six Mcf of natural gas to one Bbl
of oil, condensate or natural gas liquids, which approximates the
relative energy content of oil, condensate and natural gas liquids
as compared to natural gas. Prices have historically often been
higher or substantially higher for oil than natural gas on an energy
equivalent basis, although
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