Undeveloped oil and gas reserves.
Undeveloped oil and gas reserves are reserves of any category
that are expected to be recovered from new wells on undrilled acreage, or from existing wells where a
relatively major expenditure is required for recompletion. Reserves on undrilled acreage shall be
limited to those directly offsetting development spacing areas that are reasonably certain of production
when drilled, unless evidence using reliable technology exists that establishes reasonable certainty of
economic producibility at greater distances. Undrilled locations can be classified as having proved
undeveloped reserves only if a development plan has been adopted indicating that they are scheduled
to be drilled within five years, unless the specific circumstances justify a longer time. Under no
circumstances shall estimates for undeveloped reserves be attributable to any acreage for which an
application of fluid injection or other improved recovery technique is contemplated, unless such
techniques have been proved effective by actual projects in the same reservoir or an analogous
reservoir, or by other evidence using reliable technology establishing reasonable certainty.
Upstream.
The portion of the oil and gas industry focused on acquiring, developing, exploring for and
producing oil and gas.
Working interest.
An interest in an oil and gas lease that gives the owner of the interest the right to
drill for and produce oil and gas on the leased acreage and requires the owner to pay a share of the
costs of drilling and production operations.
The terms “analogous reservoir”, “deterministic estimate”, “developed oil and gas reserves”,
“development project”, “development well”, “economically producible”, “estimated ultimate recovery”,
“exploratory well”, “probabilistic estimate”, “probable reserves”, “proved oil and gas reserves”,
“reasonable certainty”, “reliable technology”, “reserves”, “resources” and “undeveloped oil and gas
reserves” are defined by the SEC.
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