AcreageThe area over which a company has hydrocarbon exploration interest. Acreage is also the plural form of acre which is a land unit of measurement in the US. An acre is equal to 43,560 square feet or 4,046.86 square meters. Acres is the measurement used in Oil and Gas leases to determine payment of lease bonus and royalties to the landowner (Lessor).
AquiferA body of permeable rock that can contain or transmit groundwater.
Bonus Consideration Payment
Lease Bonus is usually the cash consideration that is paid by the lessee for the execution of an oil and gas lease by a landowner
Coal Bed MethaneOften referred to as CBM, is methane stored within coal by a process called adsorption. The methane is in a near-liquid state, lining the inside of pores within the coal. To extract the gas, a steel-encased hole is drilled into the coal seam reducing the pressure within the coal seam causing both gas and 'produced water' escape to the surface through tubes.
CompletionThe procedure by which a successful well is readied for production.
CondensateA low-density mixture of hydrocarbon liquids that are present as gaseous components in raw natural gas.
Conventional ResourceAny area where natural gas or oil can be drilled and extracted vertically.
Cubic Foot of GasThe amount of natural gas required at room temperature at sea level to fill a volume of one cubic foot.
Cubic Meter of GasThe amount of natural gas required at room temperature at sea level to fill a volume of one cubic meter.
Directional DrillingA technique that enables drilling at an angle to reach a particular underground formation.
Dry GasNatural gas not containing any liquid components.
FlaringThe controlled and safe burning of gas which cannot be used for commercial or technical reasons.
Hydraulic FracturingThe pumping of water and sand into a reservoir with enough force that the reservoir rock is cracked creating a network of fractures resulting in the flow of oil or gas from the reservoir to the surface.
Horizontal DrillingAn advanced form of directional drilling in which the lateral hole is drilled horizontally.
Liquid-Rich ShaleShale rocks that contain oil instead of, or in addition to, gas.
Marcellus ShaleA unit of marine sedimentary rock found in eastern North America. Named for a distinctive outcrop near the village of Marcellus, New York in the United States, it extends throughout much of the Appalachian Basin.
Natural GasA naturally occurring mixture of hydrocarbon and non-hydrocarbon gases found in porous rock formations. Its principal component is methane.
Natural Gas Liquids (NGL)A general term for liquid products separated from natural gas in a gas processing plant. These include propane, butane, ethane and natural gasoline.
PermeabilityThe state or quality of a material or membrane that causes it to allow liquids or gases to pass through it.
PlayFormation capable of exploitation.
PorosityThe open space within a rock, similar to pores in a sponge.
ReservoirPorous, permeable rock containing oil and natural gas; enclosed or surrounded by layers of less permeable or impervious rock.
Whenever oil or gas production begins, the landowner is entitled to part of the total production. A royalty is agreed upon as a percentage of the lease, minus what was reasonably used in the Lessee's production costs. The royalty is paid by the Lessee to the owner of the mineral rights, the Lessor in the Lease. It is based on a percentage of the gross production from the property and is free and clear of all costs, except for taxes.