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Royalty Owner

Glossary of Terms | Print |

The following are abbreviations and definitions of terms commonly used in the oil and gas industry and this website.

Bbl

One barrel of crude oil or NGL or 42 gallons of liquid volume.

Bcf

One billion cubic feet of natural gas volume.

Bcfe

One billion cubic feet of natural gas equivalent.

Boe

Barrel of oil equivalent.

Btu

British thermal unit. One British thermal unit is the amount of heat required to raise the temperature of one pound of water by one degree Fahrenheit.

Completion

Refers to the work performed and the installation of permanent equipment for the production of natural gas and crude oil from a recently drilled 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 gas in another reservoir.

Fracture or Fracturing

Procedure to stimulate production by forcing a mixture of fluid and proppant into the formation under high pressure. Fracturing creates artificial fractures in the reservoir rock to increase permeability and porosity, thereby allowing the release of trapped hydrocarbons.

HBP

Held by production – reference to the status of an oil and gas lease.

Horizontal drilling

A drilling technique that permits the operator to drill a horizontal well shaft from the bottom of a vertical well and thereby to contact and intersect a larger portion of the producing horizon than conventional vertical drilling techniques and may, depending on the horizon, result in increased production rates and greater ultimate recoveries of hydrocarbons.

LTM EBITDAX

Last twelve months adjusted EBITDA plus exploration expense, excludes gain/loss on sale of assets.

MBbls

One thousand barrels of crude oil.

MBoe

One thousand barrels of oil equivalent.

Mcf

One thousand cubic feet of natural gas volume.

MMBoe

One million barrels of oil equivalent.

MMBtu

One million British thermal units.

MMcf

One million cubic feet of natural gas volume.

MRL

mid-reach lateral; a well with a horizontal lateral of approximately 6,900 feet

Natural Gas Liquid(s) or NGL(s)

Hydrocarbons which can be extracted from wet natural gas and become liquid under various combinations of increasing pressure and lower temperature. NGLs include ethane, propane, butane, and other natural gasolines.

Net production

Natural gas and crude oil production that we own, less royalties and production due to others. References to net production include our proportionate share of any affiliated partnerships’ net production.

Oil

Crude oil or condensate.

Operator

The individual or company responsible for the exploration, development and/or production of an oil or gas well or lease.

Plug-n-perf (PnP)

a method of completing horizontal wells.

Proved developed reserves

The combination of proved developed producing and proved developed non-producing reserves.

Proved reserves

Those quantities of crude oil, natural gas, NGLs and condensate, which, by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be economically producible—from a given date forward, from known reservoirs, and under existing conditions, operating methods, and government regulations—prior to the time at which contracts providing the right to operate expire, unless evidence indicates that renewal is reasonably certain, regardless of whether deterministic or probabilistic methods are used for the estimation.

Proved undeveloped reserves or PUDs

Proved 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.

Proved reserves to production ratio

The ratio of proved developed reserves to total net production for the year ended December 31st, or other specified period.

Recomplete or Recompletion

The modification of an existing well for the purpose of producing natural gas and crude oil from a different producing formation.

Refrac or Refracture

A refrac is when we stimulate the present producing zone of a well to increase production, using hydraulic, acid, gravel, etc. fracture techniques.

Reserves

Estimated remaining quantities of crude oil, natural gas, NGLs and related substances anticipated to be economically producible, as of a given date, by application of development projects to known accumulations. In addition, there must exist, or there must be a reasonable expectation that there will exist, the legal right to produce or a revenue interest in the production, installed means of delivering crude oil, natural gas, NGLs or related substances to market, and all permits and financing required to implement the project.

Royalty

An interest in a natural gas and crude oil lease that gives the owner of the interest the right to receive a portion of the production from the leased acreage (or of the proceeds of the sale thereof), but generally does not require the owner to pay any portion of the costs of drilling or operating the wells on the leased acreage. Royalties may be either landowner’s royalties, which are reserved by the owner of the leased acreage at the time the lease is granted, or overriding royalties, which are usually reserved by an owner of the leasehold in connection with a transfer to a subsequent owner.

SEC

The United States Securities and Exchange Commission.

SRL

Standard-reach lateral; a well with a horizontal lateral of approximately 4,200 feet

TIL

turn-in-line; a well turned to sales

Undeveloped acreage/properties

Leased acreage on which wells have not been drilled or completed to a point that would permit the production of commercial quantities of natural gas and crude oil, regardless of whether such acreage contains proved reserves.

Working interest

An interest in a natural gas and crude oil lease that gives the owner of the interest the right to drill and produce natural gas and crude oil on the leased acreage. It requires the owner to pay all of their share of the costs of drilling and production operations.

XRL

Extended-reach lateral; a well with a horizontal lateral of approximately 9,500 feet