05.07.2009
Costs that are paid out of initial investment in a venture, before even the venture’s activities start
The main fossil fuels are coal, petroleum or natural gas. The fuels were formed from plants and animals that lived more than 300 million years ago during the carboniferous period, which is part of the Paleozoic era. As the fuels are burnt they release the chemical energy stored within them. More than 81% of the world’s energy comes from fossil fuels
A statement that cannot sustain itself as merely a historical fact. A forward-looking statement predicts, projects, or uses future events as expectations or possibilities, such as in the phrase “All statements contained herein, as well as oral statements that may be made by the company or by officers, directors or employees of the company acting on the company’s behalf that are not statements of historical fact, constitute “forward-looking statements” and are made pursuant to the safe- harbor provisions of the private securities litigation reform act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause the actual results of the company to be materially different from the historical results or from any future results expressed or implied by such forward-looking statements”.
Warning with regard to “forward-looking statements” – the estimates with regards to the volume of the well’s natural gas reserves, as provided by the Operator, constitute Forward Looking Statements as defined under the Israel Securities’ Law. These estimates are based on geological, geophysical and other estimates received from the Drill Operator and serve, at this time, only as estimates whereby there is no certainty as of yet with regards to them. The Partnership has not conducted estimates or independent evaluations of these said estimates. These estimates are expected to be updated as additional information is accumulated, including as a result of the continued analysis of the well proceeds, the conduction of production tests and the conduction of appraisal drilling, should they be conducted, andor as a result of a variety of factors related to projects searching for, and producing, natural gas
An informal market which trades in the future delivery of a specific type of oil with only some transactions resulting in physical delivery of the oil. Unlike a futures market, regulation is much less strict and there is no clearinghouse or margin payments. These conditions tend to restrict trading to large oil companies and financial entities
This presentation includes “forward-looking information” within the meaning of Section 27A of the US Securities Act of 1933, as amended and Section 21E of the US Securities Exchange Act of 1934, as amended. Forward-looking statements are statements made by companies based on data available to them as of the date of their report. They are typically identified by use of terms such as “believes,” “expects,” “anticipates,” “intends,” “estimates,” “projects,” “target,” “goal,” “plans,” “objective,” “should” or similar expressions or variations on these expressions, and are made based on a company’s current plans, expectations, estimates, assumptions and beliefs concerning future events. No assurances can be given that such events or performance will occur as projected and actual results may differ materially from those projected.
Example 2:
This presentation was prepared by XYZ Energy Limited Partnership and the corporations it holds (“the partnership”) and does not constitute an offer to buy the partnership’s securities or an invitation to receive such offers and is designed solely to provide information to investors.
The information included in the presentation and any other information provided during its presentation does not constitute a recommendation or opinion and is not a substitute to the discretion of potential investors. The description of the partnership’s activities in the presentation is merely a summary, and in order to get a full picture of the partnership’s activities, including the risk factors, one must refer to the partnership’s full reports as published on the Israel Securities Authority website and on the Tel Aviv Stock Exchange website. The partnership and/or the general partner in the partnership are not responsible for the completeness or accuracy of the information contained in this presentation and will not be liable for damages and/or losses of any kind that might be incurred as a result of using the information.
The presentation includes forward-looking information as defined in the Securities Law 5728-1968. The information, inter alia, includes forecasts, targets, estimates and appraisals and other information pertaining to future events or matters, which there is no certainty will be realized and which are not under the partnership’s control.
This forward-looking information is based on the estimates of the general partner of the partnership, which are inter alia based on the information available to the general partner at the time this presentation was prepared, including estimates about the partnership’s field of activities and data and publications that were inter alia published by various companies, bodies and authorities and which were not reviewed by the general partner independently. The realization and/or non-realization of the forward-looking information could be affected, inter alia, by the risk factors that characterize the partnership’s activities, as well as by developments in the economic environment and by various factors including regulatory factors and other external factors, as well as factors related to oil and natural gas exploration and production projects.
In addition, the schedule for executing various actions in the oil assets which the partnership has rights in (or is due to have rights in) that are included in this presentation, as well as their costs, are projections and include forward-looking information that is uncertain and based on only partial information available to the general partner at the time of the presentation, including estimates of the general partner based on the information available to him at that date, which could change in view of the progress in the actions, the actual dates of execution, and the findings that will be obtained and many limitations and/or external effects such as a change in the conditions of the oil assets, a delay in receiving the necessary approvals and permits for carrying out the different actions, a dependence on contractors, and so on. As such, the actions that will be executed in practice and their dates could be fundamentally different than the estimated or inferred targets in the presentation.
The general partner and/or the partnership are not obligated to update or revise any such forecast and/or estimate in order to reflect events or circumstances that apply after the publication of this presentation.
There are many different theories as to the origins of fossil fuels. The most widely accepted theory says that fossil fuels are formed when organic matter (such as the remains of a plant or animal) is compressed under the earth, at very high pressure for a very long time. This is referred to as thermogenic methane which is formed from organic particles that are covered in mud and other sediment. Over time, more and more sediment and mud and other debris are piled on top of the organic matter. This sediment and debris puts a great deal of pressure on the organic matter, which compresses it. This compression, combined with high temperatures found deep underneath the earth, break down the carbon bonds in the organic matter.
The deeper under the earth’s crust, the higher the temperature. At low temperatures (shallower deposits), more oil is produced relative to natural gas. At higher temperatures, however, more gas is created, as opposed to oil. That is why natural gas is usually associated with oil in deposits that are 1 to 2 miles below the earth’s crust. Deeper deposits, very far underground, usually contain primarily natural gas, and in many cases, pure methane.
Natural gas can also be formed through the transformation of organic matter by tiny microorganisms. This type of methane is referred to as biogenic methane. Methanogens, tiny methane producing microorganisms, chemically break down organic matter to produce methane. These microorganisms are commonly found in areas near the surface of the earth that are void of oxygen. These microorganisms also live in the intestines of most animals, including humans. Formation of methane in this manner usually takes place close to the surface of the earth, and the methane produced is usually lost into the atmosphere. In certain circumstances, however, this methane can be trapped underground, recoverable as natural gas. An example of biogenic methane is landfill gas. Waste-containing landfills produce a relatively large amount of natural gas, from the decomposition of the waste materials that they contain. New technologies allow this gas to be harvested and added to the supply of natural gas.
A third way in which methane (and natural gas) is believed to be formed is through abiogenic processes. Extremely deep under the earth’s crust, there exist hydrogen-rich gases and carbon molecules. As these gases gradually rise towards the surface of the earth, they may interact with minerals that also exist underground, in the absence of oxygen. This interaction may result in a reaction, forming elements and compounds that are found in the atmosphere (including nitrogen, oxygen, carbon dioxide, argon, and water). If these gases are under very high pressure as they move towards the surface of the earth, they are likely to form methane deposits, similar to thermogenic methane. Although there are several ways that methane, and thus natural gas, may be formed, it is usually found underneath the surface of the earth. As natural gas has a low density, once formed it will rise towards the surface of the earth through loose, shale type rock and other material.
Most of this methane will simply rise to the surface and dissipate into the atmosphere. However, a great deal of this methane will rise up into geological formations that ‘trap’ the gas under the ground. These formations are made up of layers of porous, sedimentary rock (similar to a sponge, that absorbs the gas), with a denser, impermeable layer of rock on top. This impermeable rock traps the natural gas under the ground. If these formations are large enough, they can trap a great deal of natural gas underground, in what is known as a reservoir.
There are a number of different types of these formations, but the most common is created when the impermeable sedimentary rock forms a ‘dome’ shape, like an umbrella that catches all of the natural gas that is floating to the surface. There are a number of ways that this sort of ‘dome’ may be formed. For instance, faults are a common location for oil and natural gas deposits to exist. A fault occurs when the normal sedimentary layers sort of ‘split’ vertically, so that impermeable rock shifts down to trap natural gas in the more permeable limestone or sandstone layers. Essentially, the geological formation which layers impermeable rock over more porous, oil and gas rich sediment, has the potential to form a reservoir.
To successfully bring these fossil fuels to the surface, a hole must be drilled through the impermeable rock to release the fossil fuels under pressure. Note that in reservoirs that contain oil and gas, the gas, being the least dense, is found closest to the surface, with the oil beneath it, typically followed by a certain amount of water. With natural gas trapped under the earth in this fashion, it can be recovered by drilling a hole through the impermeable rock. Gas in these reservoirs is typically under pressure, allowing it to escape from the reservoir on its own.
As per the Gas Law: an installation for the reception, transmission, distribution, supply, storage, measurement or change of pressure of gas, including pipelines, buildings, machinery, devices, accessories and fixed or movable gas equipment, connected to such installation, other than for home use, and an LNG installation
A well into which gas is injected in order to maintain or increase pressure in an oil reservoir
The process whereby separated associated gas is pumped back into a reservoir for conservation purposes or to maintain the reservoir pressure
The amount of gas estimated to be in the reservoir prior to commencement of production