When a company acquires an interest in a block by taking over all or part of the financial commitment for drilling an exploration well.
A geographical area under which an oil or gas reservoir lies.
Spacing and production rules mandated by the state for a common reservoir in an area.
Field Run Ticket
A paper record completed by the purchasers or transporters representative documenting how much crude oil was removed from an oil well location.
The party who first purchases and takes title to the production from an oil or gas well.
First Right of Refusal
A provision in leases stating that the operator has the right to top lease before any third party does. (This in effect is an option – the option to review and preempt a transaction by another party).
Retrieving objects from the borehole, such as a broken drillstring, or tools.
The pressure at the bottom of a well when it is shut in at the wellhead.
Salt water underlying gas and oil in the formation.
A method of breaking down a formation by pumping fluid at very high pressures. The objective is to increase production rates from a reservoir.
Fresh Water Knockout
A vessel used near a well location to separate produced brine from crude oil. These are used generally when there are high volumes of produced water. Also referred to as an oil-water separator.
Fuel and Shrinkage
The difference between the amounts of gas produced at the wellhead and the gas that enters a pipeline for sale. The losses include those from the separation process, field use, as well as fuel, flare gas and plant liquids extraction.