Term
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Definition
| Activities that include all of the activities involved in finding and producing oil and gas up to the initial point that the oil or gas is capable of being sold, such as exploration, acquisition, drilling, developing, and producing oil and gas, frequently referred to as exploration and production activities, or E&P activities. |
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Definition
| Activities that include refining, processing, marketing, and distribution. |
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| Activities that have characteristics of both upstream and downstream activities. |
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Definition
| A company involved in E&P activities as well as at least one downstream activity. |
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Term
| Independent Oil and Gas Company |
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Definition
| A company involved primarily in only E&P activities. |
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Definition
| The impervious rock that prevents further movement of the oil and gas . |
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| The measure of the pore space, i.e., openings in a rock in which petroleum can exist. |
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| measures the “connectability” of the pores, which determines the ability of the petroleum to flow through the rock from one pore space to another. |
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| A porous and permeable underground formations 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. |
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Definition
| The ownership, conveyed by deed, of any mineral beneath the surface. |
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Definition
| Retained by the owner of the mineral rights when that owner enters into a lease agreement with another party and who receives a specified portion of the minerals produced or a specified portion of the gross revenue from selling the production, free and clear of any costs of exploring, developing, or operating the property. |
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Term
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Definition
| Created via leasing and is responsible for paying all (100%) of the cost of the exploration, development, and operation of a property. |
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Term
| Overriding Royalty Interest (ORI) |
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Definition
| A nonworking interest created from the working interest who's share of revenue is a stated percentage of the share of revenue belonging to the working interest from which it was created. The owner does not pay any of the exploration, development, or operating costs but is responsible for its share of any severance or production taxes. |
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Term
| Production Payment Interest (PPI) |
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Definition
| A nonworking interest created out of a working interest that is limited to a specified amount of oil or gas, money, or time, after which it reverts back to the interest from which it was created and ceases to exist. |
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Definition
| Payment based on the number of days drilled. |
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Definition
| Payment based on the number of feet drilled. |
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Definition
| Payment of a fixed sum of money based on drilling to a certain depth or stage of completion |
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Term
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Definition
| Routine rotary drilling consists of rotating a drill bit downwards through the formations towards target depth. |
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Term
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Definition
| During the drilling process, drilling fluid, is constantly circulated down the wellbore. |
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Definition
| The date the rotary drilling bit touches ground. |
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Definition
| 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. |
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Term
| Proved Developed Reserves |
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Definition
| Reserves that can be expected to be recovered through existing wells with existing equipment and operating methods. |
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Term
| Proved Undeveloped Reserves |
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Definition
| 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. |
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Definition
| Based on geological and/or engineering data similar to that used in estimates of proven reserves, but technical, contractual, or regulatory uncertainties preclude such reserves being classified as proven. |
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Definition
| 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. |
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Definition
| A well drilled within the proved area of an oil or gas reservoir to the depth of a horizon known to be productive. |
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Definition
| A well drilled or completed for the purpose of supporting production in an existing field. |
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Definition
| A drilling effort, geologically directed, to obtain information pertaining to a specific geologic condition |
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Definition
| The first well drilled in a location where there has been no previous drilling or production. |
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Definition
| A well drilled along what the engineers believe to be the outer perimeter of the reservoir. |
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Definition
| A well that is drilled to test whether a known, proved reservoir actually extends beyond what engineers had preciously believed to be the outer reservoir perimeter. |
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Definition
| A new lease executed before expiration or termination of the existing lease. |
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Definition
| Ownership of both the surface and mineral rights. |
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Term
| National Oil Company (NOC) |
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Definition
| An oil company fully or in the majority owned by a national government. |
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Definition
| Means that both the mineral rights and the surface rights are acquired rather than just the mineral rights. The purchase price is allocated and capitalized. |
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