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FieldPoint Petroleum: Glossary of Terms

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Bbl - One stock tank barrel, or 42 U.S. gallons liquid volume, used herein in reference to crude oil or other liquid hydrocarbons.

Bcf - One billion cubic feet

BOE - Equivalent barrels of oil. In reference to natural gas, natural gas equivalents are determined using the ratio of six Mcf of natural gas to one Bbl of crude oil, condensate or natural gas liquids.

Bopd - Barrels of oil per day.

Btu - One British thermal unit. The quantity of heat required to raise the temperature of one pound of water one degree Fahrenheit.

Crude Oil - Oil removed from the ground before it is processed.

DD&A; - Depreciation, depletion, and amortization.

Developed Acreage - The number of acres which are allocated or assignable to producing wells or well 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 Gas - Gas that contains very low amounts of natural gas liquids.

Dry Hole or Dry Well - A well found to be incapable of producing either oil or gas in sufficient quantities to justify completion of an oil or gas well.

Exploratory Well - 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.

Farmin - An arrangement whereby one oil operator "buys in" or acquires an interest in a lease or concession owned by another operator on which oil or gas has been discovered or is being produced.

Finding Costs - The capital costs associated with finding and developing oil and gas reserves.

Formation - An identifiable single geologic horizon.

Fracture stimulation (frac) - Action taken to increase the inherent productivity of a prospective formation through the hydraulic injection of water, diesel, or CO2 at high pressures and high rates.

Gross Acres or Gross Wells - The total acres or wells, as the case may be, in which a working interest is owned.

Horizontal Wells - Wells which are drilled at angles greater than 70 from vertical.

Independent Producer - An energy company, usually in the exploration and production segment of the industry, with no marketing, transportation or refining operations.

Infill drilling - 1) Wells drilled to fill in between established producing wells on a lease; 2) A drilling program to reduce the spacing between wells in order to increase production from the lease.

Mbbl - One thousand barrels of crude oil or other liquid hydrocarbons.

MBOE - One thousand barrels of oil equivalent.

MMBbls - One million barrels of oil equivalent.

Mmbtu - One million btu’s.

Mcf - One thousand cubic feet.

Mmcf - One million cubic feet. Often used to describe a well’s production per day as MMcf/d.

Net Acres or Net Wells - The sum of the fractional working interests owned in gross acres or gross wells.

Payzone - The producing formation(s) of a well.

Present Value of Estimated Future Net Revenues or PV-10 Value - The present value of estimated future net revenues is an estimate of future net revenues from a property at its acquisition date, at a specified date, after deducting production and ad valorem taxes, future capital costs and operating expenses, but before deducting federal income taxes. The future net revenues have been discounted at an annual rate of 10% to determine their “present value”. The present value is shown to indicate the effect of time on the value of the revenue stream and should not be construed as being the fair market value of the properties. Estimates have been made using constant oil and natural gas prices and operating costs at a specified date.

Productive Well - A well that is producing oil or gas that is capable of production.

Proved Developed Reserves - Reserves that can be expected to be recovered through existing wells with existing equipment and operating methods.

Proved Reserves - The estimated quantities of crude oil, natural gas and natural gas liquids with geological and engineering data demonstrate with reasonable certainty to be recoverable in future years from known reservoirs under existing economic and operating conditions.

Proved Undeveloped Reserves - 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.

psig - pounds per square inch gauge (as observed on a gauge).

Royalty Interest - An interest in an oil and gas property entitling the owner to a share of oil and gas production free of costs of production.

Spud - To start the actual drilling of a well.

3-D Seismic - Advanced technology method of detecting underground structures with the potential for accumulations of hydrocarbons identified by the collection and measurement of the intensity and timing of sound waves transmitted into the earth as they reflect back to the surface.

Undeveloped Acreage - Lease acreage on which wells have not been drilled or completed to a point that would permit the production of commercial quantities of oil and gas regardless of whether such acreage contains proved reserves.

Wet Gas - Unprocessed natural gas or partially processed natural gas produced from geological strata containing condensable hydrocarbons. Also gas rich in natural gas liquids.

Wildcat Well - The popular name for an exploratory well.

Working Interest - The operating interest which gives the owner the right to drill, produce and conduct operating activities on the property and a share of production.

 

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