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 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.
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