The following are abbreviations and definitions of terms commonly used in the oil and gas industry. Unless otherwise indicated, natural gas volumes are stated at the legal pressure base of the state or area in which the reserves are located and at 60 degrees Fahrenheit and in most instances are rounded to the nearest major multiple. BOEs are determined using the ratio of six Mcf of natural gas to one Bbl of oil.
Bbl means a barrel of 42 U.S. gallons of oil.
Bcf means billion cubic feet of natural gas.
Bcfe means billion cubic feet equivalent, determined using the ratio of six Mcf of natural gas to one Bbl of crude oil, condensate or natural gas liquids.
BOE means barrels of oil equivalent.
Completion means the installation of permanent equipment for the production of oil or gas.
Development Well means a well drilled within the proved area of an oil or gas reservoir to the depth of a stratigraphic horizon known to be productive.
Exploratory Well means a well drilled to find and produce oil or gas in an unproved area, to find a new reservoir in a field previously found to be productive of oil or gas in another reservoir, or to extend a known reservoir.
Gross, when used with respect to acres or wells, refers to the total acres or wells in which a company, individual, trust, or foundation has a working interest.
Horizontal drilling means a drilling technique that permits the operator to contact and intersect a larger portion of the producing horizon than conventional vertical drilling techniques and can result in both increased production rates and greater ultimate recoveries of hydrocarbons.
MBbls means thousand barrels of oil.
Mcf means thousand cubic feet of natural gas.
Mcfe means 1,000 cubic feet equivalent, determined using the ratio of six Mcf of natural gas to one Bbl of crude oil, condensate or natural gas liquids.
MMBbls means million barrels of oil.
MMBOE means million barrels of oil equivalent.
MMcf means million cubic feet of natural gas.
MMcfe means million cubic feet of gas equivalent, determined using the ratio of 6 Mcf of natural gas to 1 Bbl of crude oil, condensate or natural gas liquids.
Net, when used with respect to acres or wells, refers to gross acres of wells multiplied, in each case, by the percentage working interest owned by a company, individual, trust, or foundation.
Net production means production that is owned by a company, individual, trust, or foundation, less royalties and production due others.
Oil means crude oil or condensate.
Operator means the individual, company, trust, or foundation responsible for the exploration, development, and production of an oil or gas well or lease.
Present Value of Future Revenues means the pretax present value of estimated future revenues to be generated from the production of proved reserves, net of estimated production and future development costs. Future net revenues are discounted to a present value of an annual discount rate whcih is typically 10%.
Proved Developed Reserves means reserves that can be expected to be recovered through existing wells with existing equipment and operating methods. Additional oil and gas expected to be obtained through the application of fluid injection or other improved recovery techniques for supplementing the natural forces and mechanisms of primary recovery can be included as proved developed reserves only after testing by a pilot project, or after the operation of an installed program has confirmed through production response that increased recovery will be achieved.
Proved Reserves means the estimated quantities of crude oil, natural gas, and natural gas liquids which geological and engineering data demonstrate with reasonable certainty to be recoverable in future years from known reservoirs under existing economic and operating conditions, i.e., prices and costs as of the date the estimate is made. Prices include consideration of changes in existing prices provided only by contractual arrangements, but not on escalations based upon future conditions.
Proved Undeveloped Reserves means 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. Reserves on undrilled acreage are usually limited to those drilling units offsetting productive units that are reasonably certain of production when drilled. Proved reserves for other undrilled units can be claimed only where it can be demonstrated with certainty that there is continuity of production from the existing productive formation. Under no circumstances are estimates for proved undeveloped reserves generally attributed to any acreage for which an application of fluid injection or other improved recovery technique is contemplated, unless such techniques have been proved effective by actual tests in the area and in the same reservoir.
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