Oil Field Terms

Reserves
Proved Reserves
Probable Reserves
Possible Reserves
Contingent Resources (SPE/AAPG Classification)
Production
Oil Production (STB/D)
Water Production (STB/D)
Gas Production (MCF/D)
Condensates (STB/D)
Natural Gas Liquids (STB/D)
Initial Production Rate, STB/D
Peak or Plateau Production STB/D
Decline Rate (%)/yr
Investments
Capital Investments/Expenditure
FID (Final Investments Decision)
EPC (Engineering, Procurement & Construction)
Investment Phasing
Working Capital
Exploration
G & G (Geological & Geophysical)
Drilling Well Costs (Wild Cat)
Delineation/Appraisal Drilling
Development
Development Well Costs
Completion Costs
Work Over Costs
Other Well Interventions
Infill Drilling
Injection Wells
Artificial Lift
Facilities Costs
Well Jackets/Platforms
Pipelines/Flowlines
Intelligent Well Systems
HSE Installations
Flow Stations/Pumps/Separators/Tanks
Export Terminals
Early Production Systems
FPSO (Floating Production Storage)

Tangible Investments
Intangible Investments
Mixed Investments (Split between Tangible & Intangible Investments)

Expenses
Direct Operating Expenses
Chemical & Other Treatment Costs
Tariffs
Indirect Operating Expenses
VAT
Overheads
Customs Duties
R&D
Licenses
OPL (Oil Prospecting License)
OML (Oil Mining License)
Lessee
Lessor
Lease Bonus/Signature Bonus
Lease Duration
Work Commitments
Relinquishment
Shut- In/Abandonment
Types of Agreements
JV (Joint Venture)
PSC (Production Sharing Contract)
Service Agreements
Pure Service Agreements
Farm-In/Farm Out
Farmee/Farmor
MOU (Memorandum of Understanding)
Fiscal Terms
WI (Working Interest)
Operating Interest/Non-Operating Interest
Royalty Interest
Overriding Royalty Interest
NRI (Net Revenue Interest)
Carried Interests
Reversionary Interest/Back-In
Production Tax (PPT Petroleum Profits Tax)/Hydrocarbon Tax
Pooling/Unitization
Depreciation Terms (Straight Line, Units of Production, SOYD, Accelerated, etc)

Depletion Terms (Allowance)

Investment Tax Credits (ITC)/Investment Tax Allowance
Sundry Taxes
State Taxes
Windfall Profits Tax
NDDC Tax
Education Tax
Community Overhead

Operating Agreements
Cost & Revenue Sharing
Operator Responsibilities
Expenditure Limits
Non-Consent Clause
Accounting Procedures
JOA (Joint Operating Agreements)
Valuation Context/Problem
Single Asset/Portfolio of Assets
Unlimited/Limited Capital
Value Maximization
Cost Minimization
Valuation Methodologies
Deterministic
Book Value
Market Value
DCF (Discounted Cash Flow) Before Tax / After Tax
Other Methodologies
Probabilistic
What if (Sensitivity Analysis)
Monte Carlo Simulation
Mean-Variance Approach (especially for Portfolio Problems)
Decision Analysis
Expected Value
Expected Utility
Value of Information
Options & Real Options Methodology
Statistical Decision Methodologies

Valuation Metrics
NPV (Net Present Value, Present Worth)
DPI (Profit to Investment, Discounted Profit to Investment Ratio)
DCFROR (Discounted Cash Flow Rate of Return, IRR)

GROR (Growth Rate of Return)

EPV (Expected Value, Expected Net Present Value, Mean, )
Means ( Arithmetic, Geometric, Harmonic and other Descriptive Data)
Variance (, Semi Variance)
EU (Expected Utility)
VOPI (Value of Perfect Information)
VOII (Value of Imperfect Information)