BCF
Billion cubic feet BCFE Billion cubic feet (of gas) equivalent Bbl Barrel of oil BOE Barrel of oil equivalent
BOP/BOP Stack
Blowout preventers-blowout preventer stacks – are assemblies of heavy duty valves attached to wellheads to control well pressure and prevent a blowouts.
Casing
Steel pipes set in wells to prevent the hole from sloughing / caving and to enable formations to be isolated (there could be several strings of casing in the well, one inside the other)
Cementing
Pumping a liquid slurry of cement, water and other additives behind a string of casing to isolate formations
Completion/Completed
The activities needed to prepare wells for the production of oil or gas or the injection of water or gas into the reservoir.
D Seismic
Technology that bounces sound waves off underground rock formations and processed to create a three-dimensional picture of the subsurface. Identifies rock formations most likely to contain accumulations of oil and gas
Drill pipe (Oil Production )
The drill bit is connected to the surface equipment through the drill pipe, a heavy-walled tube through which the drilling mud is fed to the bottom of the borehole. In most cases, the drill pipe also transmits the rotary motion to the bit from a turntable at the surface.
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Exploratory Well
A well drilled to find and produce oil or gas in an unproven area to find a new reservoir in fields previously found to be productive of oil and gas in another reservoir or to extend a known reservoir.
Fish
An object lost (or stuck) in the wellbore obstructing operations.
Fishing
Operations to recover a fish
Fee Land
The most extensive interest that can be owned in land, including surface and mineral (including oil and gas) rights
Field Formation
A geographical area with one or more oil and gas reservoirs. An identifiable layer of rocks named after its geographical location and dominant rock type.
“Frac”, or fracturing
A well is “fraced” to stimulate or prolong oil & gas production. Special fluids are pumped into a wellbore with powerful hydraulic pumps to cause enough pressure to crack or fracture the formation. This process creates a plane of high-permeability sand, which usually allows the hydrocarbons to flow more freely into the wellbore.
Full Cycle Economics
Current year cash margin (reserves less current year operating and administrative costs) minus 5-year finding cost.
Gross Acres
The total number of acres in which the company owns a working interest.
Gross Well
A well in which a working interest is owned.
Injecting
Injecting water or gas into the reservoir for the purpose of maintaining reservoir pressure, maximizing oil recovery and conserving resources
Injection Well
A well where gas or water is injected back into the reservoir usually to increase pressure and thereby stimulate production. In a gas injection well- gas is reinjected into the upper gas portion of the reservoir.. Water injection wells are typically found offshore.
Intangible Drilling Costs
Those items of costs relating to drilling, testing and completion operations on the Well which are not Tangible Costs thereof
Landowner’s Royalty
The interest retained under an oil and gas lease by the person who has the authority to grant an oil and gas lease and which bears no part of the cost of drilling or producing the oil and natural gas.
Lease
A legal contract that specifies the terms of the business relationship between an energy company and a landowner or mineral rights holder on a specific tract
Liner
A length of casing suspended from the base of a previously installed casing string
Logging
Acquisition of downhole data using tools run in the well, usually on wireline
MCFE
Thousand cubic feet (of gas) equivalent
Meter – See http://www.flowmeterdirectory.com/meter.html
MMBOE
Million barrels of oil equivalent
Mcf
A standard measurement unit for volumes of natural gas that equals one thousand cubic feet. Six Mcf of natural gas is approximately the energy equivalent of one barrel of oil
MMcf
Million cubic feet
Mud, or drilling mud
A specialized mixture of fluids and solids, or liquid and gaseous fluids, used in drilling wellbores. There are many types of these drilling fluids, usually categorized by the major component such as water-base drilling fluid, gyp mud, emulsion mud,the list goes on
Net Acre
Gross acres multiplied by the fractional working interest in the property.
Net Oil Computer
A combination of electronic and mechanical devices that automatically determines the amount of oil in a water and oil emulsion.
Net Revenue Interest
The amount of the interest owned in the proceeds derived from a producing well less all royalty interests
Offering
The offering of Working Interest Participation for the purpose of drilling and potentially completing the Wells.
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Overriding Royalty Interest
A royalty interest which is typically retained by geologists or third parties which interest bears no part of the cost of drilling- completing or operating the well.
Pay Zone
The target of any drilling operation–a reservoir containing hydrocarbons that can be recovered in enough quantity to pay an income.
Perforate- or “perf”
“Perfing” a well means to create holes in the casing or liner of wellbores through which oil and gas flows from the reservoir up to the surface. Perforation is accomplished with perforating guns containing strategically placed explosive charges that is lowered into the wellbore
Production
Total production refers to all the oil and gas produced from a property. Gross Production- Total production before deducting royalties. Net Production: Gross production, minus royalties, multiplied by the company’s fractional working interest.
Production Tree:
An arrangement of heavy duty valves and fittings installed on the wellhead to control flow from the well and-or to facilitate injection operations
Recompletion
The modification of an existing well for the purpose of producing oil or gas from a different producing formation.
Reaming
An operation to restore a well bore to its original diameter (occasionally, a wellbore will cave in).
Reserves
Oil or gas contained in underground rock formations called reservoirs. Proved reserves are the estimated quantities that geologic and engineering data demonstrate can be produced with reasonable certainty from known reservoirs under existing economic and operating conditions. Recoverable reserves are those that can be produced using all known primary and enhanced recovery methods
Royalty Interest
An interest in an oil and gas property entitling the true owner to a share of oil and gas production free of costs of exploration,-development and production.
Seismic kilometres completed
The total number of kilometres of data recorded in a geophysical program
Shut-in
A well in which the valves in the production tree have been closed to cease production or injection operations on a well
Sidetracking
The operation of deviating a well around a fish.
Spud
The initial penetration of the ground or seafloor / the start of the drilling operation.
Suspension-Suspend
The temporary cessation of drilling or production operations in a well
Squeeze
Forcing cement into a wellbore to isolate perforations or repair damage
Tangible Costs
Those items of costs which in themselves have a salvage value and are ordinarily required to be capitalized for federal income tax purposes and which relate to the equipment placed on the Well.
TCF
Trillion cubic feet
Turnkey
A drilling contract that calls for a drilling contractor to drill a well for a fixed price to a specified depth and to adequately equip it so that the well is able to produce oil or gas.
Updip
A term used in a hydrocarbon reservoir that is not flat, i.e a dipping formation. In such a formation, gas is found updip from the oil.
Waterflood
A method of increasing oil recovery from an existing reservoir- Water is injected to force unrecovered oil out of reservoir rock and into nearby oil wells
Working Interest
The interest in an oil and gas leasehold which is subject to the payment of the expenses of development, operation and maintenance of a well and is subject to the payment of Landowner’s Royalty and Overriding Royalty Interests.
Workover
to repair or stimulate an existing production well to restore or increase production.
Wellbore
The hole drilled by the drill bit
Wellhead
Steel equipment installed at the surface of the well containing an assembly of heavy duty hangars and seals -the wellhead is used to support the weight of casing strings hung from it and to contain well pressure