TRP Minerals want to make sure that mineral owners have the most relevant information in order to increase their ability to create value from their minerals.
The sale, transfer or conveyance of all or a fraction of ownership interest or rights owned in real estate or other such property. The term is commonly used in the oil and gas business to convey working interest, leases, royalty, overriding royalty interest and net profits interest.
An agreement between the operator and net revenue interest (NRI) owner in which the parties specify the fractional type of interest attributed to the NRI owner by the operator after an examination of title.
The combining of multiple wells to produce from a specified reservoir.
Ownership of the entire and absolute right or interest to use or exploit a tract of land from the center of the earth to the stars, including the air, surface and minerals.
State rules for spacing and production within a common reservoir covering specific geographic extents.
Force Pooling is the act of being forced by state law into participation in an oil and/or gas producing unit. Pooling is a technique used by oil and gas operating companies to organize drilling unit.
The person or entity that is granting or conveying lands, minerals, etc.
A term used to define the provision in a lease that extends the right to operate a lease as long as a well produces a minimum quantity of oil and/or gas.
Spacing orders limit development to one well per unit. Operators can request a hearing with State regulatory bodies to increase the number of well in a spacing order based on drainage of the reservoir.
The owner of the rights and interest of a mineral estate where the minerals have been severed from the surface.
The legal ownership of minerals within a specific tract of land.
Ownership of the right to exploit, mine or produce all minerals lying beneath the surface of a property. In this case, minerals include all hydrocarbons. Mineral interests include: 1. the right to use as much of the surface as is reasonably necessary to access the minerals, 2. the right to execute any conveyances of mineral rights, 3. the right to receive bonus consideration, 4. the right to receive delay rentals and 5. the right to receive royalty. Any or all of the above five rights of mineral ownership may be conveyed by the mineral owner.
A interest in an mineral estate that provides rights to participate in the production of oil and gas. A non-participating Royalty Interest has no executive rights or the ability to negotiate or act as an agent of the mineral estate.
ORRI is a fractional, undivided interest with the right to participate or receive proceeds from the sale of oil and/or gas. It is not an interest in the minerals, rather an interest in the proceeds or revenue from the oil & gas minerals sold that is limited to specific tracts of land.
A royalty interest giving its owner the right to “participate” in bonuses received and in proceeds of revenue from oil and/or gas produced.
Unit created by combining separate mineral interests under the pooling clause of a lease or agreement.
Pooling Orders result from hearing within the States regulatory body that determine the parameters of the Forced Pooling.
The act of confirming. Ratification of an oil and gas lease means to confirm it’s existence and terms.
Townships are divided into 36 sections. Each section is a one mile square containing 640 acres.
The separation of a mineral or royalty interest from other interests in that land.
A state tax levied against both royalty and working interest owners upon their pro-rata share of oil and gas production.
A chronological history of the ownership or significant events effecting a particular piece of property.
Measures taken to fix any defects in the chain of title (ownership history), which includes correcting instruments and reconciling title with the use and possession of land.
An oil and gas lease which becomes effective only after the expiration (or termination) of an existing lease upon the subject land tract.
The location of a specific Township is determined by the combination of "Township & Range". The Township & Range are reverenced from the State's Principal Meridian and the Base Line. For any given mineral owner, there is know need to know where the Principal Meridian or Baseline is located as any county land map will show the Township & Range.
A percentage of ownership in an oil and gas lease granting its owner the right to explore, drill and produce oil and gas from a tract of property. Working interest owners are obligated to pay a corresponding percentage of the cost of leasing, drilling, producing and operating a well or unit. After royalties are paid, the working interest also entitles its owner to share in production revenues with other working interest owners, based on the percentage of working interest owned
We traditionally pay a lump sum of cash within 10 business days after you sign the purchase and sale agreement.
Consideration paid to the lessor by a lessee to extend the terms of an oil and gas lease in the absence of operations and/or production that is contractually required to hold the lease. This consideration is usually required to be paid on or before the anniversary date of the oil and gas lease during its primary term, and typically extends the lease for an additional year. Nonpayment of the delay rental in the absence of production or commencement of operations will result in abandonment of the lease after its primary term has expired.
The cash payment or consideration that is paid by the Lessee for the execution of and oil and gas lease by the mineral owner.
Consideration paid to the lessor by a lessee to extend the terms of an oil and gas lease in the absence of operations and/or production that is contractually required to hold the lease. This consideration is usually required to be paid on or before the primary term of the lease expires.
The person or entity that is receiving an oil and gas lease.
The person or entity that is granting an oi and gas lease.
NRI is the mineral owner's interest in the revenue of a well. NRI are calculation by the Royalty Rate in conjunction with the spacing and allocation of the well. Formula: ((Net Mineral Acre/Spacing Size)*Allocation %))*Royalty Rate
The initial period provided in an oil and gas lease to develop the property. Oil & gas leases often have a secondary term referred to as an Extension or Kicker.
A clause often added to an oil lease to limit holding non producing lands or depths beyond primary term of a lease. Also known as a Freestone rider.
The payment received from the production of oil and/or gas as stimulated by an oil and gas lease.
Percentage of gross or net production that is paid to the mineral owner.
Payment to royalty owners under the terms of a lease which allows the lessee to defer production from a well capable of producing but shut in for lack of a market.
We focus on areas that we know best in order to provide the highest level of expertise.
Wells that have a similarity on which a comparison is based represent the range of possible outcomes. Common attributes used to compare wells are Geology, Reservoir, Well Density, Well Design, First Production Date, and Completion Methodology.
Proved Developed Producing Reserves are reserves that are currently producing oil and/or natural gas. PDP has the highest value as the development and execution risk has been eliminated.
Reserves that have been developed and infrastructure is in-place, but it is not yet producing oil meaning that execution risk remains
Proved Undeveloped Reserves are the least valuable proved reserves as there is substantial development and execution risk remaining before oil is produced.
A concept that assumes that money is worth more today than it will in the future. Specifically, PV is the current value of a future stream of cash flows based on a Discount Rate.
A Purchase and Sale Agreement is a legal document executed after mutual acceptance on an offer, which states the final sale price and all other terms of the purchase.
A production type curve is a representative production profile of a well for a specific play and/or area. That is, if you were going to drill a successful well in an area, a type curve would be the “best representation” of the expected production forecast.
We strive to help facilitate your decisions so that you are empowered with the best information and knowledge so that you can capture the highest value of your minerals.
A porous, permeable sedimentary rock containing oil and gas.
Formation is a geologic term to describe separate layers of rock based on depositional characteristics and/or structural constraints.
Ability of rock to transmit fluids or gas through pore spaces.
Percentage of the rock volume that can be occupied by oil, gas or water.
Sedimentary rocks are formed from pre-existing rocks or pieces of once-living organisms. They form from deposits that accumulate on the Earth's surface. Sedimentary rocks often have distinctive layering or bedding. Many of the picturesque views of the desert southwest show mesas and arches made of layered sedimentary rock.
Structural traps form as a result of a structural deformation that creates an impervious boundary that inhibits hydrocarbons from migrating out of a contained reservoir.
The extent of temperature–time driven reactions, which are responsible for the conversion of sedimentary organic matter to oil and gas
The concentration of organic material in source rocks as represented by the weight percent of organic carbon.
A low porosity and low permeability sedimentary rock containing oil and gas.
We ALWAYS buy minerals in a fair and transparent way so that mineral owners have the best available information to make the most informed decision to create lasting value.
A budgetary document, usually prepared by the operator, to list estimated expenses of drilling a well to a specified depth, casing point or geological objective, and then either completing or abandoning the well.
Term used to describe the events and equipment necessary to bring a wellbore into production once drilling operations have been concluded, including but not limited to the assembly of downhole tubulars and equipment required to enable safe and efficient production from an oil or gas well. Completion quality can significantly affect production from unconventional reservoirs.
Refers to the first period of production after a well is completed and put on line. Usually the period of Flush Production provides disproportionately high rates of production compared to the production rates as a well ages.
A pipeline that gather produced oil and gas within an oil and gas field to bring the oil and gas to a common point to make it more efficient to transfer the oil and gas to market.
An organic chemical compound of Hydrogen and Carbon. All natural oil and oil derivatives are hydrocarbons.
Well drilled between established producing wells on a lease to increase ultimate recovery of oil and gas.
The rate of the initial flow of oil and/or gas from a well. Operators generally report IP as an average of production for 30 to 60 days.
A well that is used to inject fluids (usually Produced water) into a subsurface formation.
1,000 cubic feet of natural gas measured at a standard pressure and temperature. MCF is the global metric of Natural Gas.
Refers to the state of the hydrocarbon that is a heavier liquid. Common NGLs are Ethane, Propane, Butane, Isobutane, and Pentane.
Person or entity responsible for maintaining well operations with the rules established by State Regulatory bodies.
One of the two calculation methodologies allowed by the IRS for calculating the depletion allowance on oil and gas mineral and royalty production. Generally, this allowance is calculated by multiplying 15% times the gross value of the annual production, but is limited to certain levels of production.
Holes that are shot through the production casing and cement into the productive oil and/or gas formation.
Plugging and abandoning a well. After a well’s productive life, it is usually plugged and abandoned with cement and heavy mud. The wellhead is removed, and the casing cut off 3-6 feet underground, and a steel plate welded over the top.
One of the two calculation methodologies allowed by the IRS for calculating the depletion allowance on oil and gas mineral and royalty production. Generally, this allowance is calculated by multiplying 15% times the gross value of the annual production, but is limited to certain levels of production.
Possible reserves are highest risk of unproved reserves where the probability of successful extraction is at least 10%.
Probable reserves are less certain than Proved reserves and can be estimated with a degree of certainty sufficient to indicate that they are more likely to be recovered than not. Used to refer to reserves that have a 50% or greater chance of being produced.
Oil or gas which has not yet been produced but has been located and is economically recoverable. Used to refer to reserves that have a 90% or better probability of being produced in the current environment.
The completion for production of an existing well bore in another formation from that in which the well was previously completed.
A mature well which is at or toward the end of its economic life.
The process of mechanically pulling (or lifting) liquids from a well bore.
Lease acreage on which wells have not been drilled or completed to a point that would permit the production of commercial quantities of oil and gas.
The drilled hole or borehole, including the open hole or uncased portion of the well. Borehole may refer to the inside diameter of the wellbore wall, the rock face that bounds the drilled hole.
NTRP Minerals want to make sure that mineral owners have the most relevant information in order to increase their ability to create value from their minerals.
The sale, transfer or conveyance of all or a fraction of ownership interest or rights owned in real estate or other such property. The term is commonly used in the oil and gas business to convey working interest, leases, royalty, overriding royalty interest and net profits interest.
An agreement between the operator and net revenue interest (NRI) owner in which the parties specify the fractional type of interest attributed to the NRI owner by the operator after an examination of title.
The combining of multiple wells to produce from a specified reservoir.
Ownership of the entire and absolute right or interest to use or exploit a tract of land from the center of the earth to the stars, including the air, surface and minerals.
State rules for spacing and production within a common reservoir covering specific geographic extents.
Force Pooling is the act of being forced by state law into participation in an oil and/or gas producing unit. Pooling is a technique used by oil and gas operating companies to organize drilling unit.
The person or entity that is granting or conveying lands, minerals, etc.
A term used to define the provision in a lease that extends the right to operate a lease as long as a well produces a minimum quantity of oil and/or gas.
Spacing orders limit development to one well per unit. Operators can request a hearing with State regulatory bodies to increase the number of well in a spacing order based on drainage of the reservoir.
The owner of the rights and interest of a mineral estate where the minerals have been severed from the surface.
The legal ownership of minerals within a specific tract of land.
Ownership of the right to exploit, mine or produce all minerals lying beneath the surface of a property. In this case, minerals include all hydrocarbons. Mineral interests include: 1. the right to use as much of the surface as is reasonably necessary to access the minerals, 2. the right to execute any conveyances of mineral rights, 3. the right to receive bonus consideration, 4. the right to receive delay rentals and 5. the right to receive royalty. Any or all of the above five rights of mineral ownership may be conveyed by the mineral owner.
A interest in an mineral estate that provides rights to participate in the production of oil and gas. A non-participating Royalty Interest has no executive rights or the ability to negotiate or act as an agent of the mineral estate.
ORRI is a fractional, undivided interest with the right to participate or receive proceeds from the sale of oil and/or gas. It is not an interest in the minerals, rather an interest in the proceeds or revenue from the oil & gas minerals sold that is limited to specific tracts of land.
A royalty interest giving its owner the right to “participate” in bonuses received and in proceeds of revenue from oil and/or gas produced.
Unit created by combining separate mineral interests under the pooling clause of a lease or agreement.
Pooling Orders result from hearing within the States regulatory body that determine the parameters of the Forced Pooling.
The act of confirming. Ratification of an oil and gas lease means to confirm it’s existence and terms.
Townships are divided into 36 sections. Each section is a one mile square containing 640 acres.
The separation of a mineral or royalty interest from other interests in that land.
A state tax levied against both royalty and working interest owners upon their pro-rata share of oil and gas production.
A chronological history of the ownership or significant events effecting a particular piece of property.
Measures taken to fix any defects in the chain of title (ownership history), which includes correcting instruments and reconciling title with the use and possession of land.
An oil and gas lease which becomes effective only after the expiration (or termination) of an existing lease upon the subject land tract.
The location of a specific Township is determined by the combination of "Township & Range". The Township & Range are reverenced from the State's Principal Meridian and the Base Line. For any given mineral owner, there is know need to know where the Principal Meridian or Baseline is located as any county land map will show the Township & Range.
A percentage of ownership in an oil and gas lease granting its owner the right to explore, drill and produce oil and gas from a tract of property. Working interest owners are obligated to pay a corresponding percentage of the cost of leasing, drilling, producing and operating a well or unit. After royalties are paid, the working interest also entitles its owner to share in production revenues with other working interest owners, based on the percentage of working interest owned
Consideration paid to the lessor by a lessee to extend the terms of an oil and gas lease in the absence of operations and/or production that is contractually required to hold the lease. This consideration is usually required to be paid on or before the anniversary date of the oil and gas lease during its primary term, and typically extends the lease for an additional year. Nonpayment of the delay rental in the absence of production or commencement of operations will result in abandonment of the lease after its primary term has expired.
The cash payment or consideration that is paid by the Lessee for the execution of and oil and gas lease by the mineral owner.
Consideration paid to the lessor by a lessee to extend the terms of an oil and gas lease in the absence of operations and/or production that is contractually required to hold the lease. This consideration is usually required to be paid on or before the primary term of the lease expires.
The person or entity that is receiving an oil and gas lease.
The person or entity that is granting an oi and gas lease.
NRI is the mineral owner's interest in the revenue of a well. NRI are calculation by the Royalty Rate in conjunction with the spacing and allocation of the well. Formula: ((Net Mineral Acre/Spacing Size)*Allocation %))*Royalty Rate
The initial period provided in an oil and gas lease to develop the property. Oil & gas leases often have a secondary term referred to as an Extension or Kicker.
A clause often added to an oil lease to limit holding non producing lands or depths beyond primary term of a lease. Also known as a Freestone rider.
The payment received from the production of oil and/or gas as stimulated by an oil and gas lease.
Percentage of gross or net production that is paid to the mineral owner.
Payment to royalty owners under the terms of a lease which allows the lessee to defer production from a well capable of producing but shut in for lack of a market.
Wells that have a similarity on which a comparison is based represent the range of possible outcomes. Common attributes used to compare wells are Geology, Reservoir, Well Density, Well Design, First Production Date, and Completion Methodology.
Proved Developed Producing Reserves are reserves that are currently producing oil and/or natural gas. PDP has the highest value as the development and execution risk has been eliminated.
Reserves that have been developed and infrastructure is in-place, but it is not yet producing oil meaning that execution risk remains
Proved Undeveloped Reserves are the least valuable proved reserves as there is substantial development and execution risk remaining before oil is produced.
A concept that assumes that money is worth more today than it will in the future. Specifically, PV is the current value of a future stream of cash flows based on a Discount Rate.
A Purchase and Sale Agreement is a legal document executed after mutual acceptance on an offer, which states the final sale price and all other terms of the purchase.
A production type curve is a representative production profile of a well for a specific play and/or area. That is, if you were going to drill a successful well in an area, a type curve would be the “best representation” of the expected production forecast.
A porous, permeable sedimentary rock containing oil and gas.
Formation is a geologic term to describe separate layers of rock based on depositional characteristics and/or structural constraints.
Ability of rock to transmit fluids or gas through pore spaces.
Percentage of the rock volume that can be occupied by oil, gas or water.
Sedimentary rocks are formed from pre-existing rocks or pieces of once-living organisms. They form from deposits that accumulate on the Earth's surface. Sedimentary rocks often have distinctive layering or bedding. Many of the picturesque views of the desert southwest show mesas and arches made of layered sedimentary rock.
Structural traps form as a result of a structural deformation that creates an impervious boundary that inhibits hydrocarbons from migrating out of a contained reservoir.
The extent of temperature–time driven reactions, which are responsible for the conversion of sedimentary organic matter to oil and gas
The concentration of organic material in source rocks as represented by the weight percent of organic carbon.
A low porosity and low permeability sedimentary rock containing oil and gas.
A budgetary document, usually prepared by the operator, to list estimated expenses of drilling a well to a specified depth, casing point or geological objective, and then either completing or abandoning the well.
Term used to describe the events and equipment necessary to bring a wellbore into production once drilling operations have been concluded, including but not limited to the assembly of downhole tubulars and equipment required to enable safe and efficient production from an oil or gas well. Completion quality can significantly affect production from unconventional reservoirs.
Refers to the first period of production after a well is completed and put on line. Usually the period of Flush Production provides disproportionately high rates of production compared to the production rates as a well ages.
A pipeline that gather produced oil and gas within an oil and gas field to bring the oil and gas to a common point to make it more efficient to transfer the oil and gas to market.
An organic chemical compound of Hydrogen and Carbon. All natural oil and oil derivatives are hydrocarbons.
Well drilled between established producing wells on a lease to increase ultimate recovery of oil and gas.
The rate of the initial flow of oil and/or gas from a well. Operators generally report IP as an average of production for 30 to 60 days.
A well that is used to inject fluids (usually Produced water) into a subsurface formation.
1,000 cubic feet of natural gas measured at a standard pressure and temperature. MCF is the global metric of Natural Gas.
Refers to the state of the hydrocarbon that is a heavier liquid. Common NGLs are Ethane, Propane, Butane, Isobutane, and Pentane.
Person or entity responsible for maintaining well operations with the rules established by State Regulatory bodies.
One of the two calculation methodologies allowed by the IRS for calculating the depletion allowance on oil and gas mineral and royalty production. Generally, this allowance is calculated by multiplying 15% times the gross value of the annual production, but is limited to certain levels of production.
Holes that are shot through the production casing and cement into the productive oil and/or gas formation.
Plugging and abandoning a well. After a well’s productive life, it is usually plugged and abandoned with cement and heavy mud. The wellhead is removed, and the casing cut off 3-6 feet underground, and a steel plate welded over the top.
One of the two calculation methodologies allowed by the IRS for calculating the depletion allowance on oil and gas mineral and royalty production. Generally, this allowance is calculated by multiplying 15% times the gross value of the annual production, but is limited to certain levels of production.
Possible reserves are highest risk of unproved reserves where the probability of successful extraction is at least 10%.
Probable reserves are less certain than Proved reserves and can be estimated with a degree of certainty sufficient to indicate that they are more likely to be recovered than not. Used to refer to reserves that have a 50% or greater chance of being produced.
Oil or gas which has not yet been produced but has been located and is economically recoverable. Used to refer to reserves that have a 90% or better probability of being produced in the current environment.
The completion for production of an existing well bore in another formation from that in which the well was previously completed.
A mature well which is at or toward the end of its economic life.
The process of mechanically pulling (or lifting) liquids from a well bore.
Lease acreage on which wells have not been drilled or completed to a point that would permit the production of commercial quantities of oil and gas.
The drilled hole or borehole, including the open hole or uncased portion of the well. Borehole may refer to the inside diameter of the wellbore wall, the rock face that bounds the drilled hole.
The sale, transfer or conveyance of all or a fraction of ownership interest or rights owned in real estate or other such property. The term is commonly used in the oil and gas business to convey working interest, leases, royalty, overriding royalty interest and net profits interest.
An agreement between the operator and net revenue interest (NRI) owner in which the parties specify the fractional type of interest attributed to the NRI owner by the operator after an examination of title.
The combining of multiple wells to produce from a specified reservoir.
Ownership of the entire and absolute right or interest to use or exploit a tract of land from the center of the earth to the stars, including the air, surface and minerals.
State rules for spacing and production within a common reservoir covering specific geographic extents.
Force Pooling is the act of being forced by state law into participation in an oil and/or gas producing unit. Pooling is a technique used by oil and gas operating companies to organize drilling unit.
The person or entity that is granting or conveying lands, minerals, etc.
A term used to define the provision in a lease that extends the right to operate a lease as long as a well produces a minimum quantity of oil and/or gas.
Spacing orders limit development to one well per unit. Operators can request a hearing with State regulatory bodies to increase the number of well in a spacing order based on drainage of the reservoir.
The owner of the rights and interest of a mineral estate where the minerals have been severed from the surface.
The legal ownership of minerals within a specific tract of land.
Ownership of the right to exploit, mine or produce all minerals lying beneath the surface of a property. In this case, minerals include all hydrocarbons. Mineral interests include: 1. the right to use as much of the surface as is reasonably necessary to access the minerals, 2. the right to execute any conveyances of mineral rights, 3. the right to receive bonus consideration, 4. the right to receive delay rentals and 5. the right to receive royalty. Any or all of the above five rights of mineral ownership may be conveyed by the mineral owner.
A interest in an mineral estate that provides rights to participate in the production of oil and gas. A non-participating Royalty Interest has no executive rights or the ability to negotiate or act as an agent of the mineral estate.
ORRI is a fractional, undivided interest with the right to participate or receive proceeds from the sale of oil and/or gas. It is not an interest in the minerals, rather an interest in the proceeds or revenue from the oil & gas minerals sold that is limited to specific tracts of land.
A royalty interest giving its owner the right to “participate” in bonuses received and in proceeds of revenue from oil and/or gas produced.
Unit created by combining separate mineral interests under the pooling clause of a lease or agreement.
Pooling Orders result from hearing within the States regulatory body that determine the parameters of the Forced Pooling.
The act of confirming. Ratification of an oil and gas lease means to confirm it’s existence and terms.
Townships are divided into 36 sections. Each section is a one mile square containing 640 acres.
The separation of a mineral or royalty interest from other interests in that land.
A state tax levied against both royalty and working interest owners upon their pro-rata share of oil and gas production.
A chronological history of the ownership or significant events effecting a particular piece of property.
Measures taken to fix any defects in the chain of title (ownership history), which includes correcting instruments and reconciling title with the use and possession of land.
An oil and gas lease which becomes effective only after the expiration (or termination) of an existing lease upon the subject land tract.
The location of a specific Township is determined by the combination of "Township & Range". The Township & Range are reverenced from the State's Principal Meridian and the Base Line. For any given mineral owner, there is know need to know where the Principal Meridian or Baseline is located as any county land map will show the Township & Range.
A percentage of ownership in an oil and gas lease granting its owner the right to explore, drill and produce oil and gas from a tract of property. Working interest owners are obligated to pay a corresponding percentage of the cost of leasing, drilling, producing and operating a well or unit. After royalties are paid, the working interest also entitles its owner to share in production revenues with other working interest owners, based on the percentage of working interest owned
Consideration paid to the lessor by a lessee to extend the terms of an oil and gas lease in the absence of operations and/or production that is contractually required to hold the lease. This consideration is usually required to be paid on or before the anniversary date of the oil and gas lease during its primary term, and typically extends the lease for an additional year. Nonpayment of the delay rental in the absence of production or commencement of operations will result in abandonment of the lease after its primary term has expired.
The cash payment or consideration that is paid by the Lessee for the execution of and oil and gas lease by the mineral owner.
Consideration paid to the lessor by a lessee to extend the terms of an oil and gas lease in the absence of operations and/or production that is contractually required to hold the lease. This consideration is usually required to be paid on or before the primary term of the lease expires.
The person or entity that is receiving an oil and gas lease.
The person or entity that is granting an oi and gas lease.
NRI is the mineral owner's interest in the revenue of a well. NRI are calculation by the Royalty Rate in conjunction with the spacing and allocation of the well. Formula: ((Net Mineral Acre/Spacing Size)*Allocation %))*Royalty Rate
The initial period provided in an oil and gas lease to develop the property. Oil & gas leases often have a secondary term referred to as an Extension or Kicker.
A clause often added to an oil lease to limit holding non producing lands or depths beyond primary term of a lease. Also known as a Freestone rider.
The payment received from the production of oil and/or gas as stimulated by an oil and gas lease.
Percentage of gross or net production that is paid to the mineral owner.
Payment to royalty owners under the terms of a lease which allows the lessee to defer production from a well capable of producing but shut in for lack of a market.
Wells that have a similarity on which a comparison is based represent the range of possible outcomes. Common attributes used to compare wells are Geology, Reservoir, Well Density, Well Design, First Production Date, and Completion Methodology.
Proved Developed Producing Reserves are reserves that are currently producing oil and/or natural gas. PDP has the highest value as the development and execution risk has been eliminated.
Reserves that have been developed and infrastructure is in-place, but it is not yet producing oil meaning that execution risk remains
Proved Undeveloped Reserves are the least valuable proved reserves as there is substantial development and execution risk remaining before oil is produced.
A concept that assumes that money is worth more today than it will in the future. Specifically, PV is the current value of a future stream of cash flows based on a Discount Rate.
A Purchase and Sale Agreement is a legal document executed after mutual acceptance on an offer, which states the final sale price and all other terms of the purchase.
A production type curve is a representative production profile of a well for a specific play and/or area. That is, if you were going to drill a successful well in an area, a type curve would be the “best representation” of the expected production forecast.
A porous, permeable sedimentary rock containing oil and gas.
Formation is a geologic term to describe separate layers of rock based on depositional characteristics and/or structural constraints.
Ability of rock to transmit fluids or gas through pore spaces.
Percentage of the rock volume that can be occupied by oil, gas or water.
Sedimentary rocks are formed from pre-existing rocks or pieces of once-living organisms. They form from deposits that accumulate on the Earth's surface. Sedimentary rocks often have distinctive layering or bedding. Many of the picturesque views of the desert southwest show mesas and arches made of layered sedimentary rock.
Structural traps form as a result of a structural deformation that creates an impervious boundary that inhibits hydrocarbons from migrating out of a contained reservoir.
The extent of temperature–time driven reactions, which are responsible for the conversion of sedimentary organic matter to oil and gas
The concentration of organic material in source rocks as represented by the weight percent of organic carbon.
A low porosity and low permeability sedimentary rock containing oil and gas.
A budgetary document, usually prepared by the operator, to list estimated expenses of drilling a well to a specified depth, casing point or geological objective, and then either completing or abandoning the well.
Term used to describe the events and equipment necessary to bring a wellbore into production once drilling operations have been concluded, including but not limited to the assembly of downhole tubulars and equipment required to enable safe and efficient production from an oil or gas well. Completion quality can significantly affect production from unconventional reservoirs.
Refers to the first period of production after a well is completed and put on line. Usually the period of Flush Production provides disproportionately high rates of production compared to the production rates as a well ages.
A pipeline that gather produced oil and gas within an oil and gas field to bring the oil and gas to a common point to make it more efficient to transfer the oil and gas to market.
An organic chemical compound of Hydrogen and Carbon. All natural oil and oil derivatives are hydrocarbons.
Well drilled between established producing wells on a lease to increase ultimate recovery of oil and gas.
The rate of the initial flow of oil and/or gas from a well. Operators generally report IP as an average of production for 30 to 60 days.
A well that is used to inject fluids (usually Produced water) into a subsurface formation.
1,000 cubic feet of natural gas measured at a standard pressure and temperature. MCF is the global metric of Natural Gas.
Refers to the state of the hydrocarbon that is a heavier liquid. Common NGLs are Ethane, Propane, Butane, Isobutane, and Pentane.
Person or entity responsible for maintaining well operations with the rules established by State Regulatory bodies.
One of the two calculation methodologies allowed by the IRS for calculating the depletion allowance on oil and gas mineral and royalty production. Generally, this allowance is calculated by multiplying 15% times the gross value of the annual production, but is limited to certain levels of production.
Holes that are shot through the production casing and cement into the productive oil and/or gas formation.
Plugging and abandoning a well. After a well’s productive life, it is usually plugged and abandoned with cement and heavy mud. The wellhead is removed, and the casing cut off 3-6 feet underground, and a steel plate welded over the top.
One of the two calculation methodologies allowed by the IRS for calculating the depletion allowance on oil and gas mineral and royalty production. Generally, this allowance is calculated by multiplying 15% times the gross value of the annual production, but is limited to certain levels of production.
Possible reserves are highest risk of unproved reserves where the probability of successful extraction is at least 10%.
Probable reserves are less certain than Proved reserves and can be estimated with a degree of certainty sufficient to indicate that they are more likely to be recovered than not. Used to refer to reserves that have a 50% or greater chance of being produced.
Oil or gas which has not yet been produced but has been located and is economically recoverable. Used to refer to reserves that have a 90% or better probability of being produced in the current environment.
The completion for production of an existing well bore in another formation from that in which the well was previously completed.
A mature well which is at or toward the end of its economic life.
The process of mechanically pulling (or lifting) liquids from a well bore.
Lease acreage on which wells have not been drilled or completed to a point that would permit the production of commercial quantities of oil and gas.
The drilled hole or borehole, including the open hole or uncased portion of the well. Borehole may refer to the inside diameter of the wellbore wall, the rock face that bounds the drilled hole.
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