Barrel (bbl)
A measurement used in the oil industry for a unit of volume of oil or oil products equivalent to approximately 159 litres or 42 US gallons.
Barrels per day
A unit of measurement used in the industry for the production rates of oil fields, pipelines, and transportation. Abbreviated to "bpd", "b/d" or "bbl/d".
bcf
Billion Cubic Feet
Capping
Tightly closing a well so that hydrocarbons cannot escape.
Casing
Steel lining used to exclude unwanted fluids, control well pressure, and prevent the hole from caving in.
Drill collars
A heavy, thick-walled tube, usually steel, used between the drill pipe and the bit in the drill stem, used to stiffen the drilling assembly an put weight on the bit so that the bit can drill.
Dry Hole
An unsuccessful well; a well not capable of producing commercial quantities of oil or gas.
Exploration Well
A well drilled in an unproven area. Also known as a "wildcat well".
Farm in
When a company acquires an interest in a block by taking over all or part of the financial commitment for drilling an exploration well.
Field
The geographical area encompassing a group of one or more underground petroleum pools sharing the same or related infrastructure.
Hydrocarbons
A compound containing only the elements hydrogen and carbon. May exist as a solid, a liquid or a gas. The term is mainly used in a catch-all sense for oil, gas and condensate.
Present Value of Future Revenues
The pretax present value of estimated future revenues to be generated from the production of proved reserves, net of estimated production and future development costs. Future net revenues are discounted to a present value of an annual discount rate which is typically 10%.
Proved Reserves
Proved reserves are those reserves that can be estimated with a high degree of certainty to be recoverable. It is likely that the actual remaining quantities recovered will exceed the estimated proved reserves.
Probable Reserves
Probable reserves are those additional reserves that are less certain to be recovered than proved reserves. It is equally likely that the actual remaining quantities recovered will be greater or less than the sum of the estimated proved plus probable reserves
Possible Reserves
Those unproved reserves which analysis of geological and engineering data suggests are less likely to be recoverable than possible reserves. In this context, when probabilistic methods are used, there should be at least a 10 percent probability that the quantities actually recovered will equal or exceed the sum of estimated proved plus probable plus possible reserves.
Wellbore
A hole drilled or bored into the earth, usually cased with metal pipe, for the production or oil or gas.
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