Month: July 2009

The portion of the wellbore that has had metal casing placed and cemented to protect the openhole from fluids, pressures, wellbore stability problems or a combination of these (opposite of openhole)

Costs incurred in order to retain exploration and property rights after acquisition but before production has occurred. Such costs include legal costs for title defense, ad valorem taxes on non producing mineral properties, shut-in royalties, and delay rentals

The cost of storing natural gas for a period of time

The ability of a circulating drilling fluid to transport rock fragments out of a wellbore. Carrying capacity is an essential function of a drilling fluid. Carrying capacity is determined principally by the annular velocity, hole angle and flow profile of the drilling fluid, but is also affected by mud density, cuttings size and pipe position and movement

A clause in some long term contracts that allow a buyer that takes more than Take or Pay or ACQ (depending on what was agreed) amount in a single Contract Year to get a credit to set against future Take or Pay contract year obligations. Quantities are frequently restricted.