there have been periods in which they have been
lower or substantially lower.
Net acres or net wells. The sum
of the fractional working interests owned in gross acres or gross
wells.
Net Revenue Interest. The operating
interest used to determine the owner's share of total production.
Normally pressured reservoirs.
Reservoirs with a formation-fluid pressure equivalent to 0.465 psi
per foot of depth from the surface. For example, if the formation
pressure is 4,650 psi at 10,000 feet, then the pressure is considered
to be normal.
Over-pressured reservoirs. Reservoirs
subject to abnormally high pressure as a result of certain types
of subsurface formations.
Petrophysical study. Study of rock
and fluid properties based on well log and core analysis.
Present value. When used with
respect to oil and natural gas reserves, 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 as of the date indicated, without giving
effect to nonproperty-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
found to be capable of producing hydrocarbons in sufficient quantities
such that proceeds from the sale of such production exceed production
expenses and taxes.
Proved developed nonproducing reserves.
Proved developed reserves expected to be recovered from zones behind
casing in existing wells.
Proved developed producing reserves.
Proved developed reserves that are expected to be recovered from
completion intervals currently open in existing wells and able to
produce to market.
Proved developed reserves. Proved
reserves that can be expected to be recovered from existing wells
with existing equipment and operating methods.
Proved reserves. The estimated
quantities of crude oil, natural gas and natural gas liquids that
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. Proved
reserves that are expected to be recovered from new wells on undrilled
acreage or from existing wells where a relatively major expenditure
is required for recompletion.
PV-10 Value. The present value
of estimated future revenues to be generated from the production
of proved reserves calculated in accordance with Securities and
Exchange Commission guidelines, net of estimated production and
future development costs, using prices and costs as of the date
of estimation without future escalation, without giving effect to
non-property related expenses such as general and administrative
expenses, debt service, future income tax expense and depreciation,
depletion and amortization, and discounted using an annual discount
rate of 10%.
Recompletion. The completion for
production of an existing well bore in another formation from that
in which the well has been previously completed.
Reservoir. A porous and permeable
underground formation containing a natural accumulation of producible
oil and/or gas that is confined by impermeable rock or water barriers
and is individual and separate from other reservoirs.
Royalty interest. An interest in
an oil and natural gas property entitling the owner to a share of
oil or natural gas production free of costs of production.
3-D seismic data. Three-dimensional
pictures of the subsurface created by collecting and measuring the
intensity and timing of sound waves transmitted into the earth as
they reflect back to the surface.
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