Glossary

Parts per million.

An English system of measure of the amount of pressure on an area that is 1 inch square.

Pounds of pressure per square inch absolute, using absolute zero as a base.

Pounds of pressure per square inch guage, using atmospheric pressure as a base.

When a well starts selling oil or natural gas, payout the point at which the sales generated match the costs of drilling, producing and operating.

Holes through casing and cement into the productive formation.

Ability of rock to transmit fluids through pore spaces.

The ability of a rock to transmit fluid through the pore spaces. - A key influence on the rate of flow, movement and drainage of the fluids. There is no necessary relation between porosity and permeability. A rock may be highly porous and yet impermeable if there is no communication between pores. A highly porous sand is usually highly permeable. A measure of the ease with which a fluid flows through the connecting pore spaces of rock or cement. The unit of measurement is the millidarcy. Fluid conductivity of a porous medium. Ability of a fluid to flow within the interconnected pore network of a porous medium.

Any natural person, corporation, association, partnership, receiver, trustee, guardian, executor, administrator, and a fiduciary or representative of any kind.

Hole dug out in the ground surface for temporary storage of fluids during drilling operations.

Seal off formations to stop open communication of formation fluids within a well.

Unauthorized contamination of surface or subsurface waters or land.

Unit created by combining separate mineral interests under the pooling clause of lease or agreement.

Percentage of the rock volume that can be occupied by oil, gas or water.

The percentage that the volume of the pore space bears to the total bulk volume. The pore space determines the amount of space available for storage of fluids. Proven Reserves Estimated quantities of energy sources that analysis of geologic and engineering data demonstrates with reasonable certainty are recoverable under existing economic and operating conditions. The location, quantity, and grade of the energy source are usually considered to be well established in such reserves.

A plant to remove liquefiable hydrocarbon.

Includes refined crude oil, crude tops, topped crude, processed crude petroleum, residue from crude petroleum, cracking stock, uncracked fuel oil, fuel oil, treated crude oil, residuum, casinghead gasoline, natural gas gasoline, gas oil, naphtha, distillate, gasoline, kerosene, benzine, wash oil, waste oil, blended gasoline, lubricating oil, blends or mixtures of petroleum and/or any and all liquid products or by-products derived from crude petroleum oil or gas, whether enumerated above or not.

The yield of an oil or gas well; the branch of the industry that brings the oil and gas to the surface for sale. The phase of the petroleum industry that deals with bringing the well fluids to the surface and separating them and with storing, gauging, and otherwise preparing the product for pipeline. The amount of oil or gas produced in a given period. Production from a well is generally broken down into three categories:

• Flush or Initial
• Settled
• Stripper

A gaseous hydrocarbon with the characteristics of the predominant molecule CH3CH2CH3.

Acreage allocated to a well for the purpose of determining an allowable.