A
Adjusted Cost Base	The base price of an asset or security that reflects any deductions taken on or improvements to the asset or security, used to compute the gain or loss when sold.
Annulus	The space between the drillstring or casing and the well wall, or between casing strings, or between the casing and the production tubing.
API gravity	The American Petroleum Institute scale used to express the specific gravity of oils.
Associated gas	Natural gas found in association with oil in a reservoir, either dissolved in the oil or as a cap above the oil.
B
Barrel of oil equivalent (boe)	A term frequently used to measure oil and gas on a comparative basis. In Canada, 6 mcf of natural gas is equivalent to one barrel of oil.
Barrel of oil per day (bpd)	The number of barrels of oil produced from a well over a 24 hour period, normally an average figure from a longer period of time.
Barrel of oil	Measurements which equal a barrel of oil include 159 litres, 0.159 cubic metres, 35 Imperial gallons, 42 U.S. gallons.
Battery	Facility that stores and/or processes crude oil.
Bcf	Billion cubic feet
Beneficial Owner	The individual who enjoys the benefits of owning a security or property, regardless of whose name the title is in.
Bitumen	Heavy oil or petroleum in semi-solid or solid forms. Bitumen generally has a density of less than 10 degrees API.
Blowouts	Uncontrolled releases of fluids, solids, or gases.
Book value per share	Calculated by dividing owners equity by the number of shares outstanding. This accounting calculation is typically considerably lower than the actual share price because accounting principles require the use of historical cost. Book value per share is an estimation of what the company is worth if it were to be liquidated.
British thermal unit (BTU)	The amount of heat required to increase the temperature of a pound of water 1o Fahrenheit. A Btu is used as a common measure of heating value for different fuels. Prices of different fuels and their units of measure (dollars per barrel of crude, dollars per ton of coal, cents per gallon of gasoline, cents per thousand cubic feet of natural gas) can be easily compared when expressed as dollars and cents per million BTUs.
C
Cash Flow From Operations	A non-GAAP measure calculated as cash flow before changes in non-cash working capital .
Casing	The process of lining a drilled hole with steel pipe which is cemented in place to prevent caving in of the hole.
Casinghead Gas	Gas present in an oil well that is removed when it flows to the surface at the well's casing.
Centrifugal pump	A rotating pump, used for pushing large volumes of oil and gas through pipelines.
Completion	The procedure by which a successful well is readied for production.
Compressor station	Stations located every 60-80 km along a gas pipeline which recompress gas to ensure an even flow.
Concession	A defined license area granted to a company for the exploration of oil and/or gas under specific terms and conditions for a fixed period of time.
Condensate	Any mixture of relatively light hydrocarbons which remain liquid at normal temperature and pressure. Condensate generally appears when gas is drawn from a well and its temperature and pressure change sufficiently for some of it to become liquid petroleum.
Conventional crude	Liquid petroleum that is capable of flowing naturally without any processing.
Crown lands	Government owned properties.
Crude Oil	A mixture of hydrocarbons that exists as a liquid in natural underground reservoirs and remains liquid at atmospheric pressure after passing through surface separating facilities. Crude is the raw material which is refined into gasoline, heating oil, jet fuel, propane, petrochemicals, and other products.
Cubic feet per day (cf/d)	The number of cubic feet of natural gas produced from a well over a 24 hour period, normally an average figure from a longer period of time. Generally expressed as mcf/d = thousand cubic feet per day, mmcf/d = million cubic feet per day, or bcf = billion cubic feet per day.
Cubic foot	The amount of gas required to fill a volume of one cubic foot.
Cushion Gas	The amount of gas required in a storage pool to maintain sufficient pressure to keep the working gas recoverable.
D
Discovery well	An exploratory well that encounters a previously untapped oil or gas deposit.
Distillate Fuel Oil	Products of refinery distillation sometimes referred to as middle distillates; kerosene, diesel fuel, and home heating oil.
Downstream sector	Refines and markets petroleum including pipeline systems, refineries, gas distribution, and petrochemical companies.
Drill string	Steel pipes roughly 10m long joined together to form a pipe from the drill bit to the drilling platform. It is rotated during drilling and is also the conduit for the drilling mud.
Drilling mud	A mixture of clays, water, and chemicals used in drilling operations to lubricate and cool the drill bit, carry drilling wastes to the surface, prevent the walls of the well from collapsing, and to keep the upward flow of oil or gas under control.
Dry gas	Gas containing no water vapor, same as lean gas.
Dry hole	An unsuccessful well, drilled without finding commercial quantities of oil or gas.
E
Enhanced oil recovery (EOR)	The recovery of oil from a reservoir other than by the use of natural reservoir pressure. This can involve increasing the pressure (secondary recovery) or heating or increasing the pore size of the reservoir (tertiary recovery).
Exploratory well	A well in an area where petroleum has not been previously found or one targeted for formations above or below known reservoirs.
F
Fair Market Value	The price that an interested but not desperate buyer would be willing to pay and an interested but not desperate seller would be willing to accept on the open market assuming a reasonable period of time for an agreement to arise.
Farm-in	When a company acquires an interest in a block by taking over all or part of the financial commitment for drilling.
Fault	A geological structure consisting of a fracture in the rock along which there has been an observable amount of displacement.
Feedstock	The supply of crude oil, natural gas liquids, or natural gas to a refinery or petrochemical plant or the supply of some refined fraction of intermediate product to some other manufacturing process.
Field	The surface area above a petroleum formation.
Flare	A flare is a means of safely disposing of waste gases through the use of combustion. With an elevated flare the combustion is carried out at the top of a pipe or stack where the burner and igniter are located. A ground flare is similarly equipped except that combustion is carried out at or near ground level. A burn pit differs from a flare in that it is primarily designed to handle liquids.
Fractionation	The process whereby saturated hydrocarbons from natural gas are separated into distinct parts or "fractions" such as propane, butane, ethane, etc.
Fracturing	The application of hydraulic pressure to the reservoir formation to create fractures through which oil or gas may move to the wellbore. The purpose is to increase production rates from a reservoir.
G
Gas cap	In a field containing both gas and oil, some gas will often collect at the top of the reservoir in a single deposit known as a gas cap.
Gas field	A field or group of reservoirs of hydrocarbons containing natural gas but insignificant quantities of oil.
H
Heavy crude	Oil with a gravity below 28 degrees API. Recovery generally involves an application of heat and steam. Canadian pipelines generally require oil to have a gravity of at least 21:2 degrees API. Heavier crudes must be blended with condensate or NGLs to be shipped by pipeline.
Hydrocarbon	Any compound or mix of compounds, solid, liquid or gas, comprised of carbon and hydrogen (e.g., coal, crude oil, and natural gas).
I
Infill drilling	Drilling more wells into the same pool so that oil does not have to travel as far through the rock.
Injection well	A well used for injecting fluids into a formation in an attempt to increase recovery efficiency.
J
Joint venture	An investment undertaken by a consortium, usually with one member acting as the operator
L
Light crude	Oil with a gravity of 28 degrees API or higher. High-quality light crude has a gravity of 40 degrees or higher.
Liquified natural gas (LNG)	Natural gas that has been liquified for ease of transport by cooling the gas to -162·C. Natural gas has 600 times the volume of LNG.
M
Maintenance	Routine repairs needed throughout the life of a well, usually required more for oil than for gas wells.
Market capitalization	Calculated by multiplying the number of outstanding shares by the current stock price. This represents the market's valuation of the company at that specific time.
Maximum rate limit (MRL)	The maximum rate at which a well is legally permitted to produce, imposed by the Alberta Energy and Utilities Board.
Mcf	Thousand cubic feet.
Methane	The principal constituent of natural gas.
MMBtu	One million British thermal units, one dekatherm. Approximately equal to a thousand cubic feet (Mcf) of natural gas
N
Natural Gas Liquids (NGL)	A general term for all liquid products separated from natural gas in a gas processing plant. NGLs include propane, butane, ethane, and natural gasoline.
Natural Gas	A naturally occurring mixture of hydrocarbon and non-hydrocarbon gases found in porous rock formations. Its principal component is methane.
Net Asset Value per Share (NAVPS)	Is the estimated worth of the company based on the current market value of all its assets less liabilities. Calculated by taking the present value of the company's reserves, subtracting long-term debt, and adding working capital. Usually discounted by 10-15%.
Net debt	Long-term debt plus working capital.
Netback	The amount of money received per barrel of oil equivalent produced after subtracting operating costs, royalties, and general and administrative costs.
Non-associated Gas	Natural gas in a reservoir which contains no crude oil.
O
Oil in place	The estimation of the real amount of oil in a reservoir.
OPEC	Organization of Petroleum Exporting Countries. Members include: Algeria, Indonesia, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, United Arab Emirates and Venezuela.
Operator	The party responsible for exploration, development, or production projects.
P
Permeability	The capacity of a reservoir rock to transmit fluids.
Pipeline	A pipe through which oil or natural gas is pumped between two points, either offshore or onshore.
Pool	A natural underground reservoir that either contains or appears to contain petroleum.
Porosity	The open space within a rock, similar to a sponge.
Probable reserves	Additional reserves that are less certain to be recovered than proved reserves. This is the evaluator's best guess of what will be recovered.
Processing	The separation of oil, gas, and natural gas liquids and the removal of impurities.
Production	Crude oil and natural gas produced from a property. Gross being the company's share of total production before royalty payments and net being the gross less royalties paid.
Proved reserves	The quantity of oil and gas estimated to be recoverable with a high degree of certainty.
R
Raw natural gas	Natural gas containing impurities and unwanted substances that have to be removed.
Recoverable reserves	The proportion of hydrocarbons that can be recovered from a reservoir using existing techniques.
Refinery	A complex of facilities where crude oil is separated into light or heavy fractions which are then converted into useable products.
Reserve life index	The number of years it would take to deplete a stated category of reserves at the current production rate.
Reserve replacement ratio	The quantity of added reserves for every barrel of oil equivalent produced.
Reservoir	Porous permeable rock containing petroleum.
Royalty	The percentage interest in the value of production from a lease that is retained and paid to the mineral rights owner.
Royalty holiday	The Alberta Energy Commission grants royalty free wells in certain situations. For instance, the first 70,000 boe produced from a horizontal well are generally royalty fee
S
Seismic	Either two-dimensional or three-dimensional, computer assisted processing of sedimentary structures, assist in planning drilling programs.