After
payout. With respect to an oil or gas interest in a property, refers to the
time period after which the costs to drill and equip a well have been recovered.
Bbl. One stock tank barrel, or 42 U.S. gallons
liquid volume, used herein in reference to oil or other liquid hydrocarbons. Bbls/d.
Stock tank barrels per day. Bcf. Billion cubic
feet. Bcfe. Billion cubic feet equivalent, determined
using the ratio of six Mcf of natural gas to one Bbl of oil, condensate or natural
gas liquids. 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. | 
