AFE – Authorization for Expenditure
AOI – Area of Interest
BBL OR BBLS – Blue Barrels (Oil)
BOE – Barrels of Oil Equivalent
CON – Condensate
DUC – Drilling Uncompleted Well
JIB – Joint Interest Billing (WI Invoice)
LNG – Liquified Natural Gas
MCF – Thousand Cubic Feet (Gas)
MI – Mineral Interest
MMCF – Million Cubic Feet (Gas)
NPRI – Non-Participating Royalty Interest
ORRI – Overriding Royalty Interest
P&A – Plugged & Abandoned
PDP – Proved, Developed and Producing
PUD – Proved, Undeveloped
RI – Royalty Interest
SWD – Saltwater Disposal Well
WI – Working Interest
Bundle of Sticks – Mineral ownership consists of the following rights:
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Right to Develop (ingress/egress)
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Executive Right – right to lease
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Right to receive a lease bonus
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Right to royalties
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Right to receive delay rentals
Christmas Tree – The assembly of fittings and valves on the top of the casing which control the production rate of oil.
Fracturing – Method of breaking down a formation by pumping fluid at very high pressures to increase production rates from a reservoir.
Injection Well – Well used for pumping water or gas into the reservoir.
Mud – Mixture of substances used to lubricate the drill bit and counteract the natural pressure of the formation.
Non-Participating Royalty Interest – Carved out of the royalty ownership, NPRI owners only have an ownership in royalties. They do not have any rights lease negotiations, lease bonus, delay rentals or shut-in rentals.
Overriding Royalty Interest – Carved out of the Working Interest. It is free of production costs but does not include in any other rights. An ORRI will terminate with the well.
Proven Reserves – Reserves which are virtually certain to produce.
Reservoir – The underground formation where oil and gas has accumulated. It consists of a porous rock to hold the oil or gas, and a cap rock that prevents its escape.
Roughneck – Drill crew members who work on the rig floor.
Roustabout – Drill crew members who load and unload equipment and assist in rig operations.
Shut-In – Well is capable but not producing due to lack of equipment, market, labor, etc.
Workover – Remedial work to well equipment, pipework, or describing attempts to increase the rate of flow.
Wildcat – Well drilled in unproven, unexplored area.
Pipeline Easements
1 rod = 16.5 feet; 320 rods = 1 mile
160 sq. rods = 1 acre
640 acres = 1 sq. mile = 1 section
1 Township = 36 sq. miles
Blue Barrel (BBL)
1 BBL = 42 gallons of oil = 68 quarts of oil = 158.987 liters of oil = 662.447 cups of oil = 5,376 fl. oz of oil
1 Beer Barrel = 31 gallons of beer = 330.667
1 BBL is Equivalent to 448 beers = 74.667 six packs
- 1 BBL is Equivalent to 1,325 sticks of butter
- 1 BBL is Equivalent to 206.8 bottles of wine
- 1 BBL would hold between 504 and 630 pickles. [60-75 pickles in 5 gallons, a pickle barrel holds 63 gallons so there would be approx. 756-945 pickles in a pickle barrel]
Oil weighs 7.21 lbs per gallon so 1 BBL is ~350.51 lbs.
For reference in their primes:
- WWE wrestler, Hulk Hogan weighed 300 lbs
- WWE wrestler and Actor, Dwayne “The Rock” Johnson weighed in at 275 lbs
- Defensive Tackle, William “the Fridge” Perry weighed 335 lbs.
7.3 BBLs = 1 ton
6.29 BBLs – 1 cubic meter
