Glossary

Term / Acronym Description
2P In relation to Reserves means Proved plus Probable Reserves.
3P In relation to Reserves means Proved plus Probable plus Possible Reserves.
Abandonment Converting a drilled well to a condition that can be left indefinitely without further attention and will not damage freshwater supplies, potential petroleum reservoirs or the environment.
B billion(s)
bbl/d barrel(s) of oil per day
bbl barrel(s); common unit for measuring petroleum
Bcf billion cubic feet (natural gas)
Bcfe billion cubic feet equivalent
Best Estimate, P50, 2C Is considered to be the best estimate of the quantity of resources that will actually be recovered. It is equally likely that the actual remaining quantities recovered will be greater or less than the best estimate. If probabilistic methods are used, there should be at least a 50 percent probability (P50) that the quantities actually recovered will equal or exceed the best estimate.
BOE barrel of oil equivalent
BOE/d barrels of oil equivalent per day
Casing A series of tubular steel pipes joined by threads and couplings that lines the well bore to prevent water and rock from entering.
cfe cubic feet equivalent
Chance of Commerciality Means product of Chance of Discovery and Chance of Development.
Chance of Development Means the estimated probability that, once discovered, a known accumulation will be commercially developed.
Chance of Discovery Means the estimated probability that exploration activities will confirm the existence of a significant accumulation of potentially recoverable petroleum.
COGEH The Canadian Oil & Gas Evaluation Handbook, co-authored by the Society of Petroleum Evaluation Engineers and Society of Petroleum Engineers of Canada, providing a set of standards and guidelines for the preparation of oil and gas reserve evaluations.
Completions The process by which a well is prepared to produce oil and gas, involving such steps as running and perforating the casing.
Contingent Gas Resources Has the same meaning as Contingent Resources but is specific to quantities of gas.
Contingent Oil Resources Has the same meaning as Contingent Resources but is specific to quantities of oil.
Contingent Resources Means those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations using established technology or technology under development, but which are not currently considered to be commercially recoverable due to one or more contingencies. Contingencies may include factors such as economic, legal, environmental, political, and regulatory matters or a lack of markets. It is also appropriate to classify as contingent resources the estimated discovered recoverable quantities associated with a project in the early evaluation stage. Contingent Resources may be sub-classified as Economic Contingent Resources or Sub-economic Contingent Resources.
d day (e.g., bbl/d)
Developed Non-Producing Reserves Are those reserves that either have not been on production, or have previously been on production but are shut-in and the date of resumption of production is unknown.
Developed Producing Reserves Are those reserves that are expected to be recovered from completion intervals open at the time of the estimate. These reserves may be currently producing or, if shut-in, they must have previously been on production, and the date of resumption of production must be known with reasonable certainty.
Developed Reserves Are those reserves that are expected to be recovered from existing wells and installed facilities or, if facilities have not been installed, that would involve a low expenditure (e.g., when compared to the cost of drilling a well) to put the reserves on production. The developed category may be subdivided into producing and non-producing.
EBIT earnings before interest and tax
EBITDA earnings before interest, tax, depreciation and amortization
Economic Contingent Resources Means those Contingent Resources that are currently economically recoverable.
Environmental footprint The Company’s impact on the environment, in terms of resource use, waste generation and changes to the physical environment.
EUB or Alberta Energy & Utilities Board An independent, quasi-judicial agency of the Alberta government that regulates the development of the province’s energy resources.
Farmout An arrangement whereby the owner of a lease assigns some portion (or all) of the lease to another company for drilling.
Field The surface area above one or more underground petroleum pools sharing the same or related infrastructure.
GAAP Generally accepted accounting principles
Gross Is an estimate of resources which represents the total volumes for the indicated reservoirs attributable to 100 percent of the Garmian Block or Kurdamir Block, as applicable, without any adjustments for the Company’s working interest. For a description of the production sharing terms under the Company PSCs, readers should refer to the AIF under the heading “PSC Overview and Commitments – Production Sharing Contract Payment Terms.
Gross Block Is an estimate of resources which represents the total volumes for the indicated reservoirs attributable to 100 percent of the Garmian Block or Kurdamir Block, as applicable, without any adjustments for the Company’s working interest. For a description of the production sharing terms under the Company PSCs, readers should refer to the AIF under the heading “PSC Overview and Commitments – Production Sharing Contract Payment Terms.
Hydrocarbons Compounds made up of only carbon and hydrogen. Fossil fuels are made up of hydrocarbons.
km kilometre(s)
m metre(s)
m3 cubic metres
m3/d cubic metres per day
M&A mergers and acquisitions
Mcf thousand cubic feet
Mcf/d thousand cubic feet per day
Mcfe thousand cubic feet equivalent
MM million, millions ($MM — millions of dollars)
MMbbl million barrels
MMBtu million British thermal units
MMcf million cubic feet
MMcf/d million cubic feet per day
MMcfe million cubic feet equivalent
Net In relation to the Company’s interest in resources or production, means the Company’s 40 percent working interest (operating or non-operating) share after deduction of royalty petroleum, profit petroleum, production bonuses and capacity building support payments to the KRG pursuant to the provisions of the applicable PSC.
NGO Non-governmental organization
NI-51-101 National Instrument 51-101 sets standards for disclosure for oil and gas activities including annual filing requirements, responsibilities of reporting issuers and directors, measurement, disclosure requirements, and material change disclosure.
OGIP Original gas in-place is the total hydrocarbon content of a gas reservoir referring to the gas in place before the commencement of production.
OOIP Original oil in-place is the total hydrocarbon content of an oil reservoir referring to the oil in place before the commencement of production.
Play A play is a set of known or conceptual oil and/or gas accumulations sharing similar petroleum system elements (source rock, reservoir, trapping mechanism, timing of hydrocarbon generation and migration).
P10 The P10 or High Estimate is an optimistic estimate of the quantity that will actually be recovered from a hydrocarbon accumulation.
P50 The P50 or Best Estimate is the best estimate of the quantity that will actually be recovered from a hydrocarbon accumulation.
P90 The P90 or Low Estimate is a conservative estimate of the quantity that will actually be recovered from a hydrocarbon accumulation.
ppm parts per million
Prospect A prospect is an oil and gas opportunity that has been evaluated technically and from a risking perspective for potential drilling.
Prospective Resources Means those quantities of petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects. Prospective resources have both an associated chance of discovery and a chance of development. The chance of commerciality is the product of these two risk components.
Proved Reserves Proved reserves are those 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.
Probable Reserves Are those 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. If probabilistic methods are used, there should be at least a 50 percent probability that the quantities actually recovered will equal or exceed the sum of the estimated proved plus probable reserves.
Possible Reserves Are those 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 plus possible reserves. If probabilistic methods are used, there should be at least a 10 percent probability that the quantities actually recovered will equal or exceed the sum of the estimated proved plus probable plus possible reserves.
Prospective Gas Resources has the same meaning as Prospective Resources but is specific to quantities of gas.
Prospective Oil Resources has the same meaning as Prospective Resources but is specific to quantities of oil.
Prospective Resources Means those quantities of petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects. Prospective resources have both an associated chance of discovery and a chance of development. The chance of commerciality is the product of these two risk components.
Proved Reserves Are those 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. If probabilistic methods are used, there should be at least a 90 percent probability that the quantities actually recovered will equal or exceed the estimated proved reserves.
Recovery Factor Recovery Factor is defined as the recoverable amount of original hydrocarbons in place in a reservoir, expressed as a percentage of total hydrocarbons in place.
Reserves Are estimated remaining quantities of oil and natural gas and related substances anticipated to be recoverable from known accumulations, as of a given date, based on (a) analysis of drilling, geological, geophysical and engineering data, (b) the use of established technology and (c) specified economic conditions which are generally accepted as being reasonable and shall be disclosed. Reserves are classified as proved, probable or possible according to the degree of certainty associated with the estimates.
Resource play Large, known sources of oil and gas trapped beneath the earth’s surface. Resource plays can deliver profitable long-term production through the use of advanced technology and development that achieves economies of scale. A resource play can exist over a large areal expanse and/or thick vertical section of land and, in the past, could have been considered uneconomic or technically challenging to develop.
ROTR Means resources other than Reserves and includes Contingent Resources and Prospective Resources.
SEDAR System for Electronic Document Analysis and Retrieval; the system used for electronically filing most securities related information with the Canadian securities regulatory authorities.
Shallow gas Natural gas that is generated and accumulated within 185 metres of the earth’s surface.
Solution gas Natural gas that is entrained with crude oil in underground reservoirs. When the oil comes to the surface, the gas expands and comes out of the solution.
Sub-economic Contingent Resources Means those Contingent Resources that are not currently economically recoverable. To classify as such, there should be a reasonable expectation of a change in economic conditions within the near future that will result in them becoming economically viable.
Tcf trillion cubic feet
Tcfe trillion cubic feet equivalent
TSX Toronto Stock Exchange (formerly known as TSE)
WTI or West Texas Intermediate A 40 API light sweet crude based in Cushing, Oklahoma; one of the benchmark markers for oil.