Oil and Gas | Key Definitions
Proving Up Our Potential Below The Ground
Abandon. To temporarily or permanently cease production from a well or to cease further drilling operations.
Bcf. Billion cubic feet.
Bcfe. Billions of cubic feet equivalent. Describes the amount of energy produced by natural gas stated on an Bcf basis as well as compared to other sources such as oil. Crude oil is converted to a thousand cubic feet of natural gas equivalent on a six to one basis.
Bopd. Barrels of oil per day.
Borehole. The hole created by the drilling of the well.
BTU. A unit of heat energy, used to describe the amount of heat that can be generated by burning oil or gas.
Casing. Steel pipe placed in an oil or gas well to prevent the wall of the hole from caving in, to prevent movement of fluids from one formation to another and to aid in well control.
CNG. Compressed natural gas.
Completion. After the drilling of a successful well, the "completion" includes all the work required to make the well ready for commercial production.
Depletion. The value of a naturally occurring mineral deposit is a function of (1) the market value of the mineral, and (2) the concentration of the mineral in the mineral deposit.
EUR. Estimated Ultimate Recovery.
Fracturing. A procedure whereby a fluid is pumped into the hydrocarbon reservoir (generally over one mile below the water table), in an attempt to increase the flow of oil and/or gas from the well.
Gross wells or acres. The total wells or acres in which the Company has an interest.
Lease. A contract by which the owner of the mineral rights to a property conveys to another party for a fee, the exclusive right to explore for and develop minerals on the property, during a specified period of time.
Mcf. Thousand cubic feet.
Mcfd. Thousand cubic feet per day.
Mcfe. Millions of cubic feet equivalent. Describes the amount of energy produced by natural gas stated on an Mcf basis, as well as compared to other sources such as oil. Crude oil is converted to a thousand cubic feet of natural gas equivalent on a six to one basis.
Minerals, mineral acres or mineral interests refer to fee mineral acreage owned in perpetuity by the Company.
Net wells or acres are determined by multiplying gross wells or acres by the Company's net revenue interest in such wells or acres.
PV-10. Estimated pretax present value of future net revenues discounted at 10% using Security and Exchange Commission rules.
PDNP. Proved developed non-producing reserves.
PDP. Proved developed producing reserves.
PUD. Proved undeveloped reserves.
Reserves. The amount of recoverable oil or gas in a subsurface reservoir. Usually described as barrels of oil, or BO or thousands of Barrels of Oil or MBO and/or million cubic feet of gas MMCFG or billion cubic feet of gas BCFG.
Royalty interest. refers to well interests in which the Company does not pay a share of the costs to drill, complete and operate a well, but receives a proportionate share of production.
Spacing Unit. An area allotted to a well by regulations or field rules issued by the governmental authority having jurisdiction for the drilling and production of a well.
Working interest. refers to well interests in which the Company pays a share of the costs to drill, complete and operate a well and receives a proportionate share of production.