Increase the flow of oil from a well by introducing acid into a carbonate formation (such as limestone) to open passages through which oil can flow into the well bore. Acidizing may be called an acid job.

The number that comes from the gas pipeline at the end of the next month that doesn't balance to the nomination from the previous month.

The cost of obtaining reserves.

A well drilled in exchange for a mineral interest in a property. This is also referred to as an obligation well.

A reservoir analysis measure of volume equaling 43,560 cubic feet or 7,758 barrels. One acre-foot represents the volume that would cover one acre to a depth of one foot.

Local taxes, such as country and school district taxes, paid and based on the individual property value.

Field equipment for removing liquid from a gas stream by adsorption (as opposed to absorption as explained above for the term ABSORBER).

Generally, a royalty that must be paid regardless of production and revenue levels, such as a minimum royalty or a shut-in royalty, for which future production royalties may or may not be reduced. In a sense, the lease bonus is an advance royalty, but the term does not usually refer to the bonus.

The gaining of someone else's land due to the continuous use over a specified period of time.

AFE (AUTHORITY or AUTHORIZATION FOR EXPENDITURE) A budgeting and approval form used during the planning process for a well about to be drilled (and also used for other projects). It includes an estimate of costs to be incurred in the IDC category and in the tangible equipment category. Costs are shown in total with accompanying breakdowns. The form represents a budget for the project against which actual expenditures are compared and a joint venture form for evidencing agreement by joint interest owners to participate in the budgeted project.

A state that is 1/3 the size of the United States with a small population and vast energy resources and a 25% severance tax.

Refining process in which low-molecular weight alkenes are combined with isobutane in the presence of a catalyst.

The process of taking a total volume or value back to individual wells that flow through a common collection point or tank.

The government regulated amount of oil or gas that a well or lease can produce during a given time period.

Area of mutual interest.

A distinct twelve-digit number assigned to a U.S. well. Digits 1 and 2 are state codes, digits 3 thru 5 are county/parish or offshore codes, digits 6 through 10 identify the well, and digits 11 and 12 identify special well conditions such as a sidetracking.

A federal income tax term used in allocating GEOPHYSICAL AND GEOLOGICAL COSTS (q.v.) to certain properties. A large-scale geophysical survey may indicate several areas of interest. The costs of the survey must be allocated to each area of interest, and when leases are obtained therein, the geophysical costs become part of the basis of the property.

Natural gas, occurring in the form of a gas cap, overlying an oil zone [as opposed to non associated gas (from a gas reservoir with no oil) and dissolved (or casinghead or solution) contained in the reservoir’s crude oil gas].

A device which changes the direction of flow of fluids.

A standard measure of volume for crude oil and liquid petroleum products. One barrel equals 42 U.S. gallons.

A shipment of a product handled through a pipeline without mixing the product with any other shipments.

Oil or gas reserves (proved or unproved) that cannot be produced until future perforation of casing at the depth of that reservoir. Generally these are reserves in reservoir(s) above the currently producing zone.

The oil for an area used to set the standard for quality and setting the price. For the United States, it is West Texas Intermediate used for instance, in crude oil futures contracts on the New York Mercantile Exchange. OPEC's benchmark is Saudi Arabian Light; Europe's benchmark is North Sea Brent.

Bottom Hole Pressure (or sometimes Brake Horse Power)

The cutting or boring element used in drilling oil and gas wells. Bits are designed on two basic and different principles: the cable tool b it, which moves up and down to pulverize; and the rotary bit, which revolves to grind.

An agreement between two parties to sell and buy oil or gas in the future at a percentage or function of a future published oil or gas price routinely determined by another party. The benchmark might be another party's posted price for crude oil (or a published average spot gas price) at a specified location on the date of sale. One of four methods used to price gas or five methods for oil for Federal Royalty purposes. Generally used in processed gas sales.

A sudden, violent expulsion of oil, gas, and mud (and sometimes water) from a drilling well, followed by an uncontrolled flow from the well. It occurs when high-pressure gas is encountered in the hole and sufficient precautions, such as increasing the weight of the mud, have not been taken.

A heavy casinghead control filled with special gates or rams which can be closed around the drill pipe, or which completely close the top of the casing.

A statute which regulates the issuance and sale of securities. The term is usually restricted to state statutes.; the corresponding federal statute and regulations are the Federal Securities Act and the S.E.C. regulations.

The consideration paid by the lessee to the lessor upon execution of an oil and gas lease.

Blowout Preventer

The wellbore; the hole made by drilling or boring a well.

Money or property paid to an operator for use in drilling a well on property in which the payer has no property interest. The contributions are payable when the well reaches a predetermined depth, regardless of whether the well is productive or nonproductive. The payer may receive proprietary information on the well's potential productivity.

An agreement by which an operator contemplating the drilling of a well on his own land secures the promise of another to contribute to the cost of the well, usually in return for proprietary information on the well's potential productivity. In contrast to the dry hole letter, the bottom-hole letter requires payment upon drilling and testing the well at a specified depth or formation even if the well does not produce.

Before payout status of a well

A measure of the amount of heat required to raise the temperature of one pound of water one degree Fahrenheit. Dry natural gas averages 1.03 MMBtu/mcf; wet natural gas 1.110 MMBtu/mcf. Natural gas in pipelines has from .95 o 1.05 MMBtu/mcf. An average oil barrel has the energy content of approximately 5.6 mcf dry natural gas of 1.03 MMBTu/mcf.

The amount a unit can process running at full capacity under optimal crude oil and product slate conditions. The "nameplate" capacity.

Pipeline, small barge, or in-terminal tank quantities sold to the bigger players who have their own terminals or terminal deals. Some term quantities involved,but batch sizes tend to be a few thousand to 10,000 plus barrels.

A perforator that fires bullets through the casing in order to provide holes through which the well fluids may enter.