Association of Petroleum Geologists

American Association of Professional Landmen, formerly the American Association of Petroleum Landmen.

ABANDON  To discontinue attempts to produce oil or gas from a well or lease and to plug the reservoir in accordance with regulatory requirements and recover equipment.

Field equipment, usually a tower, that removes liquid (oil or water) from gas stream using absorption (as opposed to adsorption).  In absorption, the removed liquid changes by mixing with another liquid.  In adsorption the removed liquid is unchanged but clinging to the surface of a solid absorbent such as activated charcoal.  A triethylene glycol (TEG) absorber removes water from a gas stream whereby wet gas enters at the bottom, passes through a TEG stream, and exits dry at the top.  The wet glycol is dried in a reboiler to remove the water.  

Chronological history of land and mineral ownership.

A form of secondary recovery.

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.

The use of compressed air as a substitute for drilling mud in rotary drilling.

Method of raising oil from the formation by injecting air or gas directly into the fluid in the casing.

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.

In directional drilling, the angle expressed in degrees, at which a well is deflected from the vertical by means of a whipstock or other deflecting tool.

The space surrounding a cylindrical object within a cylinder.  The space around a pipe suspended in a wellbore is often termed the annulus, and its outer wall may be either the wall of the borehole or the casing.

The space around the pipe in a well bore.

Underground mountain-shaped strata covered with caprock or an impervious layer.

Arctic National Wildlife Reserve

Abbreviation for American Petroleum Institute, established in 1920.

API Gravity or °API – A standard industry measure of gravity (i.e., density) of liquid petroleum product.  The formula for °API in terms of specific gravity (g) is (141.5 ÷ g at 60°F) – 131.5.  Very light crude oils and gasoline have °API in the range of 50° to 60°.  Light crude oils’ °API range from about 35° to 45°.   Heavy (dense) crude oils °API range from about 6° to 25°.  Water has a

°API of 10° and a specific gravity of 1.

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.

Used with working interests and net revenue interests to indicate ownership after payout (see PAYOUT) versus BPO, before payout.

Accounts Receivable

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.

A term found in joint venture agreements designating a geographic area around the joint venture's leases.  The agreement provides that any joint venture participant obtaining new property rights within the AMI must offer such rights to the joint venture.

Asset Retirement Obligation

To deliver one's rights to another party by agreement.

In law generally, a transferee; a recipient of an interest in property or a contract.  In oil and gas law, the term commonly means, but is not limited to, the transferee of an oil and gas lease.

In law generally, a transfer.  In oil and gas law, usually a transfer of a property interest or of a contract.  The most common usage refers to the assignment of an oil and gas lease.

In law generally, a transferor; the party who conveys a right, title or interest in property or a contract.  In oil and gas law, the term commonly means, but is not limited to, the conveyor of an oil and gas lease.

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 refinind process that separates light hydrocarbons from crude oil.

An ORRI or carried interest which converts to a working interest at a specific time or event, such as one year from well completion or completion of a payout provision (e.g., 300 percent payout).

Future price of commodity less than spot price.

A device which changes the direction of flow of fluids.

An area of geological interest in the Williston basis of Montana, North Dakota, and Saskatchewan estimated to hold up to 4.3 billion barrels of recoverable oil.

Assigned code to each bank account of the company.  

Set up in Bank Account Master Maintenance.

A formation in North Texas that extends much more than was previously expected and has caused a "mineral rights rush" in several counties.

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

Impurities contained in produced oil.  Purchasing companies will ordinarily not accept oil having more than one percent of BS&W.  If the fluid as produced contains more than this proportion of foreign matter, some of the impurities such as sand and water may be removed from the crude by settling in the bottom of the lease storage.  The impurities gradually settle and thicken in the bottom of the tank as an emulsion.

Group of lease storage tanks

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

Unique number assigned by the system to each posting batch.  The batch ID # can be found in View Trend Detail by Journal Screen.

Barresl per Day

Barrels per Calendar Day. The maximum number of barrels of input that can be processed during a 24-hour period after making allowances for the types and grades of inputs to be processed.

Billion Cubic Feet

A well from which oil is lifted by use of a walking beam pump unit.

BPO Used with working interests and net revenue interests to indicate ownership before payout (see PAYOUT) versus APO, after payout.

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)

Bureau of Indian Affairs

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.

The name of a clean burning alternative fuel, produced from renewable resources. Biodiesel contains no petroleum, but it can be blended at any level with petroleum diesel.

To drain off liquid or gas generally slowly, through a valve called a bleeder.

Bureau of Land Management

The escape of gas with the liquid from a separator.

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.

Barrel of Oil Equivalent - the amount of energy produced by gas equated to oil 1:6

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.

The reservoir or rock pressure at the bottom of the hole, whether measured under flowing conditions or not.  If measured under flowing conditions, pressure readings are usually taken at different rates of flow in order to compute a theoretical value for maximum productivity.  Decline in pressure furnishes a guide, in some reservoirs, to the amount of depletion from the reservoir and the amount of remaining proved reserves.  

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.

A hydrocarbon gas extracted as a natural as liquid  from natural gas, and used as a gasoline ingredient increasing volatility and improving cold engine starts.  Liquefied petroleum gas may contain some butane but is generally propane.