Glossary
Accretive: Growth on a per share basis.
BOE: Barrel of oil equivalent, which, unless otherwise stated, is determined on the basis that six thousand cubic feet (6 mcf) of natural gas is equivalent to one barrel of oil.
Dilutive: Decreasing value on a per share basis.
Disposition: The exchange, sale or loss of an asset.
Hedging: A method employed to minimize investment risk by guaranteeing a future price to either the buyer or the seller of a given commodity or product.
Net debt: The total of all current liabilities and long-term debt less current assets.
Netbacks (cash flow): The amount received from the sale of oil and natural gas after deduction of all expenses except non-cash expenses. Expenses deducted include operating costs, royalty payments, current taxes and general and administrative expenses. Normally calculated on a per boe basis.
Netbacks (field): The amount received from the sale of oil and natural gas after deduction of royalty payments and operating costs. Normally calculated on a per boe basis.
NGLs: Natural gas liquids - marketable liquid hydrocarbons derived from natural gas.
Production: The amount of oil and natural gas that is retrieved from underground reserves and prepared for delivery to the market.
Reserve Life Index: The hypothetical number of years it would take to deplete reserves at the current production rate. Normally calculated using the latest reported reserves (proved or established) divided by the latest reported daily production (annualized).
Reserves: Oil and natural gas in the ground that has yet to be produced.
Possible Reserves: Additional reserves that are less certain to be recovered than probable reserves. It is unlikely that the actual remaining quantities recovered will exceed the sum of the estimated proved plus probable reserves. There should be at least a 10% probability that the actual quantities recovered will equal or exceed the sum of the estimated proved plus probable plus possible reserves. Probable Reserves: Additional reserves that are less certain to be recovered than proved reserves. It is equally likely that the actual remaining quantities recovered will be greater or less than the sum of the estimated proved plus probable reserves. There must be at least a 50% probability that the quantities actually recovered will equal or exceed the sum of the estimated proved plus probable reserves. Proved Reserves: Reserves that can be estimated with a high degree of certainty to be recoverable. It is likely that the actual remaining quantities recovered will exceed the estimated proved reserves. There must be at least a 90% probability that the quantities actually recovered will exceed the estimated proved reserves. NI 51-101: National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities sets out requirements and standards for disclosure by reporting issuers engaged in oil and gas activities. The instrument was developed and is enforced by the Canadian Securities Administrators (CSA) in conjunction with the Alberta Securities Commission (ASC). NI 51-101 came into effect for year-end 2003 reporting of reserves. |
Working Interest: The interest held in a property that indicates the owners’ share of obligations, such as costs associated with the property, as well as the owners’ share of the benefits, such as the production or revenue, after royalties are deducted.
Working Capital: Current assets less current liabilities, normally excluding bank debt. If this is a negative number, it is referred to as a working capital deficiency.
