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19
Glossary of Oil and Gas Terms
The terms defined in this section are used throughout this report.
Bbl. One stock tank barrel, or 42 U.S. gallons liquid volume, used herein in reference to crude oil or other liquid
hydrocarbons.
Bboe. One billion barrels of oil equivalent.
Bcf. Billion cubic feet.
Bcfe. Billion cubic feet of natural gas equivalent.
Bbtu. One billion British thermal units.
Btu. British thermal unit, which is the heat required to raise the temperature of a one-pound mass of water from
58.5 to 59.5 degrees Fahrenheit.
Boe. Barrel of oil equivalent.
Commercial Well; Commercially Productive Well. A well which produces oil, natural gas and/or NGL in sufficient
quantities such that proceeds from the sale of this production exceeds production expenses and taxes.
Completion. The process of treating a drilled well followed by the installation of permanent equipment for the
production of oil, natural gas or NGL, or in the case of a dry well, the reporting to the appropriate authority that the well
has been abandoned.
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 natural gas reservoir to the depth of a stratigraphic
horizon known to be productive.
Drilling Carry Obligation. An obligation of one party to pay certain well costs attributable to another party.
Dry Well. A well found to be incapable of producing either oil or natural gas in sufficient quantities to justify
completion as an oil or natural gas well.
Exploratory Well. A well drilled to find a new field or to find a new reservoir in a field previously found to be
productive of oil or natural gas in another reservoir.
Formation. A succession of sedimentary beds that were deposited under the same general geologic conditions.
Full Cost Pool. The full cost pool consists of all costs associated with property acquisition, exploration and
development activities for a company using the full cost method of accounting. Additionally, any internal costs that can
be directly identified with acquisition, exploration and development activities are included. Any costs related to
production, general corporate overhead or similar activities are not included.
Gross Acres or Gross Wells. The total acres or wells, as the case may be, in which a working interest is owned.
Henry Hub. Henry Hub is the major exchange for pricing natural gas futures on the NYMEX.
Horizontal Drilling. Drilling at angles greater than 70 degrees from vertical.
Mboe. One thousand barrels of oil equivalent.
Mcf. One thousand cubic feet.
Mmbbl. One million barrels of crude oil or other liquid hydrocarbons.
Mmboe. One million barrels of oil equivalent.
Mmbtu. One million btus.
Mmcf. One million cubic feet.