GLOSSARY OF TERMS

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
BCF Billion cubic feet
BCFE Billion cubic feet (of gas) equivalent
TCF Trillion cubic feet
Bbl Barrel of oil
MBbl One thousand barrels
MMBbl Million barrels
BOE Barrel of oil equivalent. A method of equating oil, gas and natural gas liquids. Gas is converted to oil based on its relative energy content at the rate of six Mcf of gas to one barrel of oil. Natural gas liquids are converted based upon volume where one barrel of natural gas liquids equals one barrel of oil.
MCFE Thousand cubic feet (of gas) equivalent
MMBOE Million barrels of oil equivalent
3-D Seismic Technology that bounces sound waves off underground rock formations and is processed to create a three-dimensional picture of the subsurface. Indentifies rock formations most likely to contain accumulations of oil and gas.
Development Well A well drilled in the area of an oil or gas reservoir known to be productive. These wells are generally low-risk.
Dry Hole A well that does not provide oil or gas in sufficient quantities to justify completion.
Enhanced Recovery Techniques used to increase or prolong production from oil and natural gas fields.
Exploratory Well A well drilled in an unproved area, sometimes referred to as a wildcat.
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.
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.
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.
Net Acres Gross acres multiplied by the fractional working interest in the property.
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.
Prospect An area designated for the potential drilling of development or exploratory wells.
Recompletion The modification of an existing well for the purpose of producing oil or gas from a different producing formation.
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 owner to a share of oil and gas production free of costs of exploration, development and production.
Working Interest The operating interest that gives the owner the right to drill, produce and conduct operating activities on the property and to share in the production.
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.
PV10 Value Pre-tax present value of estimated future net revenues discounted at 10% using SEC guidelines.