CSA Staff Notice: 51-324 (Revised) - Glossary to NI 51-101 Standards of Disclosure for Oil and Gas Activities

1934 Act

The Securities Exchange Act of 1934 of the United States of America, as amended from time to time. [NI 14-101]

Accumulation

An individual body of petroleum in a reservoir. [COGE Handbook]

Annual information form

A completed Form 51-102F2 Annual Information Form, or in the case of an SEC issuer (as defined in National Instrument 51-102 Continuous Disclosure Obligations) a completed Form 51-102F2 or an annual report or transition report under the 1934 Act on Form 10-K, Form 10-KSB or Form 20-F. [NI 51-102]

Analogous information

Information about an area outside the area the reporting issuer has an interest or intends to acquire an interest, which is referenced by the reporting issuer for the purpose of drawing a comparison or conclusion to an area in which the reporting issuer has an interest or intends to acquire an interest, which comparison or conclusion is reasonable, and includes without limitation:

•

historical information concerning reserves;

•

estimates of the volume or value of reserves;

•

historical information concerning resources;

•

estimates of the volume or value of resources;

•

historical production amounts;

•

production estimates; or

•

information concerning a field, well, basin or reservoir.

[NI 51-101]

Anticipated results

Information which may, in the opinion of a reasonable person, indicate the potential value or quantities of resources in respect of the reporting issuer's resources or a portion of its resources and includes without limitation:

•

estimates of volume;

•

estimates of value;

•

areal extent;

•

pay thickness;

•

flow rates; or

•

hydrocarbon content.

[NI 51-101]

Associated gas

The gas cap overlying a crude oil accumulation in a reservoir.

Audit

In relation to reserves data, the process whereby an independent qualified reserves auditor carries out procedures designed to allow the independent qualified reserves auditor to provide reasonable assurance, in the form of an opinion that the reporting issuer's reserves data (or specific parts thereof) have, in all material respects, been determined and presented in accordance with the COGE Handbook and are, therefore, free of material misstatement.

Because of

(a)

the nature of the subject matter (estimates of future results with many uncertainties);

(b)

the fact that the independent qualified reserves auditor assesses the qualifications and experience of the reporting issuer's staff, assesses the reporting issuer's systems, procedures and controls and relies on the competence of the reporting issuer's staff and the appropriateness of the reporting issuer's systems, procedures and controls; and

(c)

the fact that tests and samples (involving examination of underlying documentation supporting the determination of the reserves and future net revenue) as opposed to complete evaluations, are involved;

the level of assurance is designed to be high, though not absolute.

The level of assurance cannot be described with numeric precision. It will usually be less than, but reasonably close to, that of an independent evaluation and considerably higher than that of a review.

[COGE Handbook]

Bbl

Barrel. [COGE Handbook]

Bitumen

A naturally occurring viscous mixture consisting mainly of pentanes and heavier hydrocarbons. Its viscosity is greater than 10,000 mPa-s (cp) measured at original temperature in the reservoir and atmospheric pressure, on a gas-free basis. Crude bitumen may contain sulphur and other non-hydrocarbon compounds. [COGE Handbook]

BOEs

Barrels of oil equivalent. [NI 51-101 and COGE Handbook]

COGE Handbook

The "Canadian Oil and Gas Evaluation Handbook" prepared jointly by The Society of Petroleum Evaluation Engineers (Calgary Chapter) and the Canadian Institute of Mining, Metallurgy & Petroleum (Petroleum Society) as amended from time to time.

Commercial

When a project is commercial this implies that the essential social, environmental, and economic conditions are met, including political, legal, regulatory, and contractual conditions. Considerations with regard to determining commerciality include

•

economic viability of the related development project;

•

a reasonable expectation that there will be a market for the expected sales quantities of production required to justify development;

•

evidence that the necessary production and transportation facilities are available or can be made available;

•

evidence that legal, contractual, environmental, governmental, and other social and economic concerns will allow for the actual implementation of the recovery project being evaluated;

•

a reasonable expectation that all required internal and external approvals will be forthcoming. Evidence of this may include items such as signed contracts, budget approvals, and approvals for expenditures, etc.

•

evidence to support a reasonable timetable for development. A reasonable time frame for the initiation of development depends on the specific circumstances and varies according to the scope of the project. Although five years is recommended as a maximum time frame for classification of a project as commercial, a longer time frame could be applied where, for example, development of economic projects are deferred at the option of the producer for, among other things, market-related reasons or to meet contractual or strategic objectives.

[COGE Handbook]

Contingent resources

Those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations using established technology or technology under development, but which are not currently considered to be commercially recoverable due to one or more contingencies.

Contingencies may include factors such as economic, legal, environmental, political, and regulatory matters or a lack of markets. It is also appropriate to classify as contingent resources the estimated discovered recoverable quantities associated with a project in the early evaluation stage. [COGE Handbook]

Crude oil (or Oil)

A mixture consisting mainly of pentanes and heavier hydrocarbons that exists in the liquid phase in reservoirs and remains liquid at atmospheric pressure and temperature. Crude oil may contain small amounts of sulphur and other non-hydrocarbons but does not include liquids obtained from the processing of natural gas. Refer to the COGE Handbook for a more complete definition. [COGE Handbook]

CSA

The Canadian Securities Administrators, an association consisting of the thirteen securities regulatory authorities in Canada.

Developed non-producing reserves

See Part 2 of this Glossary. [COGE Handbook]

Developed producing reserves

See Part 2 of this Glossary. [COGE Handbook]

Developed reserves

See Part 2 of this Glossary. [COGE Handbook]

Development costs

Costs incurred to obtain access to reserves and to provide facilities for extracting, treating, gathering and storing the oil and gas from the reserves.

More specifically, development costs, including applicable operating costs of support equipment and facilities and other costs of development activities, are costs incurred to:

(a)

gain access to and prepare well locations for drilling, including surveying well locations for the purpose of determining specific development drilling sites, clearing ground, draining, road building, and relocating public roads, gas lines and power lines, to the extent necessary in developing the reserves;

(b)

drill and equip development wells, development type stratigraphic test wells and service wells, including the costs of platforms and of well equipment such as casing, tubing, pumping equipment and the wellhead assembly;

(c)

acquire, construct and install production facilities such as flow lines, separators, treaters, heaters, manifolds, measuring devices and production storage tanks, natural gas cycling and processing plants, and central utility and waste disposal systems; and

(d)

provide improved recovery systems.

Development well

A well drilled inside the established limits of an oil or gas reservoir, or in close proximity to the edge of the reservoir, to the depth of a stratigraphic horizon known to be productive.

Discovered petroleum initially-in-place

That quantity of petroleum that is estimated, as of a given date, to be contained in known accumulations prior to production.

The recoverable portion of discovered petroleum initially-in-place includes production, reserves and contingent resources; the remainder is unrecoverable. [COGE Handbook]

Discovered resources

Refer to discovered petroleum initially-in-place as both terms are equivalent. [COGE Handbook]

Discovered unrecoverable petroleum initially-in-place

That portion of discovered petroleum initially-in-place which is estimated, as of a given date, not to be recoverable by future development projects.

A portion of these quantities may become recoverable in the future as commercial circumstances change or technological developments occur; the remaining portion may never be recovered due to the physical/chemical constraints represented by subsurface interaction of fluids and reservoir rocks. [COGE Handbook]

Discovered unrecoverable resources

Refer to discovered unrecoverable petroleum initially-in-place as both terms are equivalent.

Effective date

In respect of information, the date as at which, or for the period ended on which, the information is provided. [NI 51-101]

Evaluation

In relation to reserves data, the process whereby an economic analysis is made of a property to arrive at an estimate of a range of net present values of the estimated future net revenue resulting from the production of the reserves associated with the property. [COGE Handbook]

Exploration costs

Costs incurred in identifying areas that may warrant examination and in examining specific areas that are considered to have prospects that may contain oil and gas reserves, including costs of drilling exploratory wells and exploratory type stratigraphic test wells.

Exploration costs may be incurred both before acquiring the related property (sometimes referred to in part as "prospecting costs") and after acquiring the property. Exploration costs, which include applicable operating costs of support equipment and facilities and other costs of exploration activities, are:

(a)

costs of topographical, geochemical, geological and geophysical studies, rights of access to properties to conduct those studies, and salaries and other expenses of geologists, geophysical crews and others conducting those studies (collectively sometimes referred to as "geological and geophysical costs");

(b)

costs of carrying and retaining unproved properties, such as delay rentals, taxes (other than income and capital taxes) on properties, legal costs for title defence, and the maintenance of land and lease records;

(c)

dry hole contributions and bottom hole contributions;

(d)

costs of drilling and equipping exploratory wells; and

(e)

costs of drilling exploratory type stratigraphic test wells.

Exploratory well

A well that is not a development well, a service well or a stratigraphic test well.

Field

A defined geographical area consisting of one or more pools. [COGE Handbook]

Forecast prices and costs

Future prices and costs that are:

(a)

generally accepted as being a reasonable outlook of the future;

(b)

if, and only to the extent that, there are fixed or presently determinable future prices or costs to which the reporting issuer is legally bound by a contractual or other obligation to supply a physical product, including those for an extension period of a contract that is likely to be extended, those prices or costs rather than the prices and costs referred to in paragraph (a). [NI 51-101]

Foreign geographic area

A geographic area outside North America within one country or including all or portions of a number of countries.

Form 51-101F1

Form 51-101F1 Statement of Reserves Data and Other Oil and Gas Information.

Form 51-101F2

Form 51-101F2 Report on Reserves Data by Independent Qualified Reserves Evaluator or Auditor.

Form 51-101F3

Form 51-101F3 Report of Management and Directors on Oil and Gas Disclosure.

Form 51-101F4

Form 51-101F4 Notice of Filing of 51-101F1 Information.

Future income tax expenses

Future income tax expenses estimated (generally, year-by-year):

(a)

making appropriate allocations of estimated unclaimed costs and losses carried forward for tax purposes, between oil and gas activities and other business activities;

(b)

without deducting estimated future costs (for example, Crown royalties) that are not deductible in computing taxable income;

(c)

taking into account estimated tax credits and allowances (for example, royalty tax credits); and

(d)

applying to the future pre-tax net cash flows relating to the reporting issuer's oil and gas activities the appropriate year-end statutory tax rates, taking into account future tax rates already legislated.

Future net revenue

The estimated net amount to be received with respect to the development and production of reserves (including synthetic oil, coal bed methane and other non-conventional reserves) estimated using:

(a)

forecast prices and costs; and

(b)

at the option of the reporting issuer, constant prices and costs.

This net amount is computed by deducting, from estimated future revenues:

•

estimated amounts of future royalty obligations;

•

costs related to the development and production of reserves;

•

abandonment and reclamation costs; and

•

future income tax expenses, unless otherwise specified in NI 51-101, Form 51-101F1 or Form 51-101F2.

Corporate general and administrative expenses and financing costs are not deducted. Net present values of future net revenue may be calculated using a discount rate or without discount.

Gas (or Natural Gas)

A mixture of lighter hydrocarbons that exist either in the gaseous phase or in solution in crude oil in reservoirs but are gaseous at atmospheric conditions. Natural gas may contain sulphur or other non-hydrocarbon compounds. [COGE Handbook]

Gross

(a)

In relation to a reporting issuer's interest in production or reserves, its "company gross reserves", which are the reporting issuer's working interest (operating or non-operating) share before deduction of royalties and without including any royalty interests of the reporting issuer.

(b)

In relation to wells, the total number of wells in which a reporting issuer has an interest.

(c)

In relation to properties, the total area of properties in which a reporting issuer has an interest.

Heavy oil

In respect of reserves or production:

(a)

in a jurisdiction that has a royalty regime specific to heavy oil, "heavy oil" is oil that qualifies for royalties specific to heavy oil; or

(b)

in a jurisdiction that has no royalty regime specific to heavy oil, "heavy oil" is oil with a density between 10 to 22.3 degrees API (as that term is defined by the American Petroleum Institute). [COGE Handbook]

Hydrocarbons

Solid, liquid, or gas made up of compounds of carbon and hydrogen in varying proportions. [COGE Handbook]

Includes oil and gas.

Instrument (or NI 51-101)

National Insrument 51-101 Standards of Disclosure for Oil and Gas Activities.

Jurisdiction

For the purposes of NI 51-101, a province or territory of Canada. [NI 14-101]

Known accumulation

An accumulation that has been penetrated by a well. In general, the well must have demonstrated the existence of hydrocarbons by flow testing in order for the accumulation to be classified as "known". However, where log and/or core data exist and there is a good analogy to a nearby and geologically comparable known accumulation, this may suffice. [COGE Handbook]

Lease

An agreement granting to the lessee rights to explore, develop and exploit a property.

Marketable

In respect of reserves or sales of oil, gas or associated by-products, the volume of oil, gas or associated by-products measured at the point of sale to a third party, or of transfer to another division of the issuer for treatment prior to sale to a third party. For gas, this may occur either before or after removal of natural gas liquids. For heavy oil or bitumen, this is before the addition of diluent.

Material (or materiality)

For the purposes of NI 51-101, information is material, in respect of a reporting issuer, if it would be likely to influence a decision by a reasonable investor to buy, hold or sell a security of the reporting issuer.

This meaning differs from the definitions of "material change" and "material fact" in securities legislation. [NI 51-101]

Mcf

Thousand cubic feet. [COGE Handbook]

McfGE

Thousand cubic feet of gas equivalent. [NI 51-101 and COGE Handbook]

Natural gas

Gas. [COGE Handbook]

Natural Gas liquids

Those hydrocarbon components that can be recovered from natural gas as liquids including, but not limited to, ethane, propane, butanes, pentanes plus, condensate and small quantities of non-hydrocarbons.

[COGE Handbook]

Net

(a)

In relation to a reporting issuer's interest in production or reserves, the reporting issuer's working interest (operating or non-operating) share after deduction of royalty obligations, plus the reporting issuer's royalty interests in production or reserves.

(b)

In relation to a reporting issuer's interest in wells, the number of wells obtained by aggregating the reporting issuer's working interest in each of its gross wells.

(c)

In relation to a reporting issuer's interest in a property, the total area in which the reporting issuer has an interest multiplied by the working interest owned by the reporting issuer.

NI 14-101

National Instrument 14-101 Definitions.

NI 51-101 or the Instrument

National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities.

NI 51-102

National Instrument 51-102 Continuous Disclosure Obligations.

Non-associated gas

An accumulation of natural gas in a reservoir where there is no crude oil.

Oil

Crude oil or synthetic oil. [COGE Handbook]

Oil and gas activities

"Oil and gas activities":

(a)

include:

(i)

the search for crude oil or natural gas in their natural states and original locations;

(ii)

the acquisition of property rights or properties for the purpose of exploring for or removing oil or gas from their natural locations;

(iii)

the construction, drilling and production activities necessary to retrieve oil and gas from their natural locations and the acquisition, construction, installation and maintenance of field gathering and storage systems including lifting the oil and gas to the surface and gathering, treating, field processing and field storage; and

(iv)

the extraction of hydrocarbons from oil sands, shale, coal or other non-conventional sources and activities similar to those referred to in clauses (i), (ii) and (iii) undertaken with a view to such extraction; but

(b)

do not include:

(i)

transporting, refining or marketing oil or gas;

(ii)

activities relating to the extraction of natural resources other than oil and gas and their by-products; or

(iii)

the extraction of geothermal steam or of hydrocarbons as a by-product of the extraction of geothermal steam or associated geothermal resources. [NI 51-101]

Operating costs

Production costs.

Petroleum

A naturally occurring mixture consisting predominantly of hydrocarbons in the gaseous, liquid, or solid phase. [COGE Handbook]

Possible reserves

See Part 2 of this Glossary. [COGE Handbook]

Preparation date

In respect of written disclosure, the most recent date to which information relating to the period ending on the effective date was considered in the preparation of the disclosure.

Probable reserves

See Part 2 of this Glossary. [COGE Handbook]

Production

The cumulative quantity of petroleum that has been recovered at a given date. [COGE Handbook]

Recovering, gathering, treating, field or plant processing (for example, processing gas to extract natural gas liquids) and field storage of oil and gas.

The oil production function is usually regarded as terminating at the outlet valve on the lease or field production storage tank. The gas production function is usually regarded as terminating at the plant gate. In some circumstances, it may be more appropriate to regard the production function as terminating at the first point at which oil, gas or their by-products are delivered to a main pipeline, a common carrier, a refinery or a marine terminal.

Production costs (or Operating costs)

Costs incurred to operate and maintain wells and related equipment and facilities, including applicable operating costs of support equipment and facilities and other costs of operating and maintaining those wells and related equipment and facilities.

Lifting costs become part of the cost of oil and gas produced.

Examples of production costs are:

(a)

costs of labour to operate the wells and related equipment and facilities;

(b)

costs of repairs and maintenance;

(c)

costs of materials, supplies and fuel consumed, and supplies utilized, in operating the wells and related equipment and facilities;

(d)

costs of workovers;

(e)

property taxes and insurance costs applicable to properties and wells and related equipment and facilities; and

(f)

taxes, other than income and capital taxes.

Production group

One of the following together, in each case, with associated by-products:

(a)

light and medium crude oil (combined);

(b)

heavy oil;

(c)

associated gas and non-associated gas (combined); and

(d)

bitumen, synthetic oil or other products from non-conventional oil and gas activities.

[NI 51-101]

Product type

One of the following:

(a)

in respect of conventional oil and gas activities:

(i)

light and medium crude oil (combined);

(ii)

heavy oil;

(iii)

natural gas excluding natural gas liquids; or

(iv)

natural gas liquids; and

(b)

in respect of non-conventional oil and gas activities:

(i)

synthetic oil;

(ii)

bitumen;

(iii)

coal bed methane;

(iv)

hydrates;

(v)

shale oil; or

(vi)

shale gas.

[NI 51-101]

Professional organization

A self-regulatory organization of engineers, geologists, other geoscientists or other professionals whose professional practice includes reserves evaluations or reserves audits, that:

(a)

admits members primarily on the basis of their educational qualifications;

(b)

requires its members to comply with the professional standards of competence and ethics prescribed by the organization that are relevant to the estimation, evaluation, review or audit of reserves data;

(c)

has disciplinary powers, including the power to suspend or expel a member; and

(d)

is either:

(i)

given authority or recognition by statute in a Canadian jurisdiction; or

(ii)

accepted for this purpose by the securities regulatory authority or the regulator.

[NI 51-101]

Property

A property includes:

(a)

fee ownership or a lease, concession, agreement, permit, licence or other interest representing the right to extract oil or gas subject to such terms as may be imposed by the conveyance of that interest;

(b)

royalty interests, production payments payable in oil or gas, and other non-operating interests in properties operated by others; and

(c)

an agreement with a foreign government or authority under which a reporting issuer participates in the operation of properties or otherwise serves as "producer" of the underlying reserves (in contrast to being an independent purchaser, broker, dealer or importer).

A property does not include supply agreements, or contracts that represent a right to purchase, rather than extract, oil or gas.

Property acquisition costs

Costs incurred to acquire a property (directly by purchase or lease, or indirectly by acquiring another corporate entity with an interest in the property), including:

(a)

costs of lease bonuses and options to purchase or lease a property;

(b)

the portion of the costs applicable to hydrocarbons when land including rights to hydrocarbons is purchased in fee;

(c)

brokers' fees, recording and registration fees, legal costs and other costs incurred in acquiring properties.

Prospect

A geographic or stratigraphic area, in which the reporting issuer owns or intends to own one or more oil and gas interests, which is geographically defined on the basis of geological data and which is reasonably anticipated to contain at least one reservoir or part of a reservoir of oil and gas.

Prospective resources

Those quantities of petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects.

Prospective resources have both an associated chance of discovery and a chance of development. [COGE Handbook]

Proved property

A property or part of a property to which reserves have been specifically attributed.

Proved reserves

See Part 2 of this Glossary. [COGE Handbook]

Qualified reserves auditor

An individual who:

(a)

in respect of particular reserves data or related information, possesses professional qualifications and experience appropriate for the estimation, evaluation, review and audit of the reserves data and related information; and

(b)

is a member in good standing of a professional organization.

[NI 51-101]

Qualified reserves evaluator

An individual who:

(a)

in respect of particular reserves data or related information, possesses professional qualifications and experience appropriate for the estimation, evaluation and review of the reserves data and related information; and

(b)

is a member in good standing of a professional organization.

[NI 51-101]

Qualified reserves evaluator or auditor

A qualified reserves auditor or a qualified reserves evaluator.

[NI 51-101]

Regulator

The securities regulatory authority or a person who holds a specified position with the securities regulatory authority (in several instances, its Executive Director or Director) in each jurisdiction.

[NI 14-101]

Reporting issuer

(a) A "reporting issuer" as defined in securities legislation; or

(b)

in a jurisdiction in which the term is not defined in securities legislation, an issuer of securities that is required to file financial statements with the securities regulatory authority.

Reservation

In relation to a report on reserves data, a modification of the standard report of an independent qualified reserves evaluator or auditor on reserves data set out in Form 51-101F2, caused by a departure from the COGE Handbook or by a limitation in the scope of work that the independent qualified reserves evaluator or auditor considers necessary. A modification may take the form of a qualified or adverse opinion or a denial of opinion.

Reserves

See Part 2 of this Glossary. [COGE Handbook]

Reserves data

Estimates of proved reserves and probable reserves and related future net revenue estimated using forecast prices and costs. [NI 51-101]

Reservoir

A porous and permeable subsurface rock formation that contains a separate accumulation of petroleum that is confined by impermeable rock or water barriers and is characterized by a single pressure system. [COGE Handbook]

Resources

A general term that may refer to all or a portion of total resources.

Review

In relation to the role of a qualified reserves evaluator or auditor in respect of reserves data, steps carried out by the qualified reserves evaluator or auditor, consisting primarily of enquiry, analytical procedures, analysis, review of historical reserves performance and discussion with reserves management staff related to a reporting issuer's reserves data, with the limited objective of assessing whether the reserves data is "plausible" in the sense of appearing to be worthy of belief based on the information obtained by the qualified reserves evaluator or auditor as a result of carrying out such steps. Examination of documentation is not required unless the information does not appear to be plausible.

A reserves review, due to the limited nature of the investigation involved, does not provide the level of assurance provided by a reserves audit. Although reserves reviews can be done for specific applications, they are not a substitute for an audit. [COGE Handbook]

SEC

The Securities and Exchange Commission of the United States of America. [NI 14-101]

Securities legislation

The statute (in most cases entitled the "Securities Act") and subordinate legislation (in most cases including regulations or rules) specified, for each jurisdiction, in NI 14-101.

References in NI 51-101 to securities legislation are to be read as references to securities legislation in the particular jurisdiction.

Securities regulatory authority

The securities commission or comparable body specified, for each jurisdiction, in NI 14-101.

References in NI 51-101 to the securities regulatory authority are to be read as references to the securities regulatory authority in the particular jurisdiction.

SEDAR

The System for Electronic Document Analysis and Retrieval referred to in National Instrument 13-101 System for Electronic Document Analysis and Retrieval (SEDAR).

Service well

A well drilled or completed for the purpose of supporting production in an existing field. Wells in this class are drilled for the following specific purposes: gas injection (natural gas, propane, butane or flue gas), water injection, steam injection, air injection, salt-water disposal, water supply for injection, observation, or injection for combustion.

Solution gas

Gas dissolved in crude oil. See gas.

Stratigraphic test well

A drilling effort, geologically directed, to obtain information pertaining to a specific geologic condition. Ordinarily, such wells are drilled without the intention of being completed for hydrocarbon production. They include wells for the purpose of core tests and all types of expendable holes related to hydrocarbon exploration.

Stratigraphic test wells are classified as

(a)

"exploratory type" if not drilled into a proved property; or

(b)

"development type", if drilled into a proved property. Development type stratigraphic wells are also referred to as "evaluation wells".

Support equipment and facilities

Equipment and facilities used in oil and gas activities, including seismic equipment, drilling equipment, construction and grading equipment, vehicles, repair shops, warehouses, supply points, camps, and division, district or field offices.

Supporting filing

A document filed by a reporting issuer with a securities regulatory authority. [NI 51-101]

Synthetic (crude) oil

A mixture of hydrocarbons derived by upgrading crude bitumen from oil sands and kerogen from oil shales or other substances such as coal; may contain sulphur or other non-hydrocarbon compounds and has many similarities to crude oil.

[COGE Handbook]

Total petroleum initially-in-place

That quantity of petroleum that is estimated to exist originally in naturally occurring accumulations.

It includes that quantity of petroleum that is estimated, as of a given date, to be contained in known accumulations, prior to production, plus those estimated quantities in accumulations yet to be discovered. [COGE Handbook]

Total resources

Refer to total petroleum initially-in-place as both terms are equivalent. [COGE Handbook]

Undeveloped reserves

See Part 2 of this Glossary. [COGE Handbook]

Undiscovered petroleum initially-in-place

That quantity of petroleum that is estimated, on a given date, to be contained in accumulations yet to be discovered.

The recoverable portion of undiscovered petroleum initially-in-place is referred to as prospective resources; the remainder is unrecoverable. [COGE Handbook]

Undiscovered resources

Refer to undiscovered petroleum initially-in-place as both terms are equivalent. [COGE Handbook]

Undiscovered unrecoverable petroleum initially-in-place

That portion of undiscovered petroleum initially-in-place which is estimated, as of a given date, not to be recoverable by future development projects.

A portion of these quantities may become recoverable in the future as commercial circumstances change or technological developments occur; the remaining portion may never be recovered due to the physical/chemical constraints represented by subsurface interaction of fluids and reservoir rocks. [COGE Handbook]

Undiscovered unrecoverable resources

Refer to undiscovered unrecoverable petroleum initially-in-place as both terms are equivalent.

Unproved property

A property or part of a property to which no reserves have been specifically attributed.

Well abandonment costs

Costs of abandoning a well (net of salvage value) and of disconnecting the well from the surface gathering system. They do not include costs of abandoning the gathering system or reclaiming the wellsite.