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Glossary of Terms

MEASURES
Units of Measurement

Oil and natural gas liquids Natural gas
bbl Barrel Mcf thousand cubic feet
bbls Barrels Mcm thousand cubic metres
Bbbls billion barrels MMcf million cubic feet
Mbbls thousand barrels Mcf/d thousand cubic feet per day
MMbbls million barrels MMcf/d million cubic feet per day
MSTB thousand stock tank barrels MMBTU million British Thermal Units
bbls/d barrels per day Bcf billion cubic feet
BOPD or bopd barrels of oil per day Bcm billion cubic metres
NGLs natural gas liquids GJ gigajoule
STB stock tank barrels Tcf trillion cubic feet

Conversion

To convert from To Multiply by
Mcf Cubic metres 28.3168
Thousand Cubic metres Mcf 35.31467
bbls Cubic metres 0.1157
Cubic metres bbls 8.64
Feet Metres 0.305
Miles Kilometres 1.609
Kilometres Miles 0.621

Oil and Gas Equivalents

A barrel of oil equivalent (“boe”) or units of natural gas equivalents (“Mcfe”) is calculated using the conversion factor of 6 Mcf (thousand cubic feet) of natural gas being equivalent to one barrel of oil. A boe conversion ratio of 6 Mcf: 1 bbl (barrel) or an Mcfe conversion of 1bbl: 6 Mcf is, based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead and is not based on either energy content or current prices. While the boe ratio is useful for comparative measures, it does not accurately reflect individual product values and might be misleading, particularly if used in isolation. As well, given that the value ratio, based on the current price of crude oil to natural gas, is significantly different from the 6:1 energy equivalency ratio, using a 6:1 conversion ratio may be misleading as an indication of value.

Reserves

“Reserves” are those quantities of petroleum anticipated to be commercially recoverable by application of development projects to known accumulations from a given date forward under defined conditions.  Reserves must further satisfy four criteria:  they must be discovered, recoverable, commercial, and remaining (as of the evaluation date) based on the development project(s) applied. 

Reserves are further categorized in accordance with the level of certainty associated with the estimates and may be sub-classified based on project maturity and/or characterized by development and production status.

“Proved Reserves” are those quantities of petroleum, which by analysis of geosciences and engineering data, can be estimated with reasonable certainty to be commercially recoverable, from a given date forward, from known reservoirs and under defined economic conditions, operating methods and government regulations.
“Probable Reserves” are those additional Reserves which analysis of geosciences and engineering data indicate are less likely to be recovered than Proved Reserves but more certain to be recovered than Possible Reserves.

“Possible Reserves” are those additional Reserves which analysis of geosciences and engineering data indicate are less likely to be recoverable than Probable Reserves.  There is a 10% probability that the quantities actually recovered will equal or exceed the sum of proved plus probable plus possible Reserves.

Resources

"Contingent Resources" are those quantities of petroleum that are estimated, as of a given date, to be potentially recoverable from known accumulations using established technology or technology under development, but which are not yet considered mature enough for commercial development because of one or more contingencies. Contingencies may include factors such as economic, legal, environmental, political, and regulatory matters, or a lack of markets.  Contingent Resources are further categorized into low case (1C), best case (2C) and high case (3C) according to the level of certainty associated with the estimates and may be sub-classified based on economic viability.

"Prospective Resources" are 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.  Prospective Resources are further subdivided in accordance with the level of certainty associated with recoverable estimates assuming their discovery and development and may be sub-classified based on project maturity.