Acid Treatment or Acidize.
Treating limestone formation with chemicals designed to open spaces for increasing production.
Anticline.
An elongated upward rock structure.
bbl.
Barrels (plural).
Blowout.
The eruption of oil or gas out of a well as a result of excessive downhole pressure.
Bottom-hole Pressure.
The pressure found in an oil or gas-bearing reservoir.
Casing.
The pipe cemented in the hole, such as surface casing, production casing, etc.
Christmas Tree.
A combination of pipes, valves, and gauges atop of a free flowing well, for a purpose of controlling the flow of oil and gas.
Cuttings.
Fragments of rock and other materials resulting from drilling.
Delay Rentals.
Additional premium payment made on a mineral lease to keep it in force after its initial expiration date.
Development Well.
A well drilled as an additional well to a same reservoir as other wells capable of production on a lease, or drilled on an offset lease usually not more than one location away from a well capable of producing from the same reservoir.
Division Order.
The document issued by marketer or pipeline Company which shows the names and fractional participants of the working interest and royalty owners of a producing well.
Drilling Mud.
Mixture of mud and chemicals used as lubricant in drilling operations.
Drillstem Test.
A procedure in which fluids or gas are released into a perforated pipe attached to the drillpipe in order to measure pressures and flow capacity.
Dry Hole.
The result of a drilling project which produce neither oil nor gas nor any other marketable minerals.
Exploratory Well.
A well drilled either in search of a new and as yet un-discovered pool of oil or gas, or with the hope of greatly extending the limits of a pool already developed.
Farmout.
An agreement whereby the owner of leasehold or a Working Interest agrees to assign his interest such as a reversionary interest, an Overriding Royalty Interest, an oil and gas payment, offset acreage or other type of interest, subject to the drilling one or more specific wells or other performance by the assignee as a condition of the assignment.
Landowner’s Royalties Interest.
An interest in production, or the proceeds there from, to be received free and clear of all costs of development, operation, or maintenance, reserved by a landowner upon the creation of an oil and gas lease.
Lifting costs.
All customary expenses incurred in connection with the production and marketing of oil and gas.
Log, Logging.
A system of determining the potential of a well.
Mineral Right.
Ownership of oil, gas, and other minerals beneath the surface of the earth.
Offset.
Drilling a well adjacent to another.
Oil Lease.
A contract conveying the minerals right to a given acreage for the purpose of drilling and producing.
Oil Payment.
Revenue from production.
OPEC.
Organization of oil Producing and Exporting Countries.
Operating Costs.
The cost of operating wells and producing and marketing oil and gas there from, including any state severance, ad valorem and production taxes, the cost of reworking any wells or instituting and operating secondary recovery program thereon, and shut-in gas well payments and minimum royalty payments made with respect to an exploration venture’s prospects and the cost of plugging and abandoning producing wells.
Delay rentals paid on a lease after its acquisition by an exploration ventures shall be treated as operation costs
Operator.
Any person, partnership, corporation or other entity that exercises direct supervision over the drilling of or production from a well.
Overriding Royalty Imterest.
An interest in the oil and gas produced pursuant to specified oil and gas lease or leases, or the proceeds from the sale thereof, carved out of the working interest, to be received free and clear of all costs of development, operation or maintenance.
Perforate.
Penetrating the casing with holes made with a perforating gun.
Permeability.
The porosity of a given formation providing oil with the ability to flow.
Porosity.
The condition of formation which permits oil to flow.
Production Facilities costs.
Capital costs incurred after or downstream of the wellhead for property and equipment used for lifting, producing, treating, storing and marketing oil, gas and other minerals from a well and for systems designed to restore or improve production and dispose of noncommercial products. Production facilities include oil well pumps, rods, separators, pipelines from the wellheads to oil storage tanks, oil storage tanks, salt water disposal equipment, natural gasoline plants, recycling equipment, oil and gas pipelines, secondary recovery facilities, and all other facilities necessary to process and market oil and gas.
Prospect.
As customarily used in the oil and gas industry, the term “prospect” means a lease or group of leases in which an owner proposes to drill one or more wells.
SEC.
Securities and Exchange Commission.
Secondary Recovery.
Any one of a number of systems by which oil remaining in a reservoir can be recovered through the use of heating, waterflooding, gas injection, etc.
Seismograph.
The instrument used to record the refraction of sound waves.
Spud In.
Starting to drill a hole.
Wellhead.
Surface equipment necessary to control the flow of or to shut down a well, including the necessary valves, gauges, chokes and associated equipment. With respect to equipping a well, the phrase “through the wellhead” includes all equipment associated with drilling and completion up to and including the wellhead. All costs of equipment after or downstream of the wellhead are considered “Production facilities costs.”
Wildcat.
An exploratory well drilled in an area in which no oil or gas has previously been discovered.
Working Interest.
An interest in oil and gas leasehold which is subject to some portion of expense of development, operation, or maintenance.