Category: Oil and Gas business

If determinist methods for estimating reserves are used, then reasonable certainty is intended to express a high degree of confidence that the quantities will be recovered. If probabilistic methods are used, there should be at least a 90% probability that the volumes actually recovered will equal or exceed the estimate. The SEC considers the concept of reasonable certainty to imply that, as more technical data becomes available, a positive, or upward, revision is much more likely than a negative, or downward revision

A well that does not flow naturally and requires a pump to bring the product to the surface

Refers to the likelihood of finding commercial gas or oil

The net movement in proved reserves during the year includes extensions, discoveries and reclassifications, additions and disposals and revisions to previous estimates. Included within these movements is the net effect of changes in year end prices

Receiving the royalty payment due to the state in the form of hydrocarbons rather than money

Used for drilling petroleum in an oil field

Pressure spike/excursion moving through the pipeline at sonic velocity, produced by a sudden change in velocity of the moving stream of oil that results from shutting down a pump station or pumping unit, closure of a valve or any other blockage of the moving stream.

An installation from which development wells are drilled and that carries all the associated processing plants and other equipment needed to maintain a field in production

The movement of newly generated hydrocarbons out of their source rock, or the expulsion of newly generated hydrocarbons from their source rock (see also gas migration)