3-D seismic  – An advanced technology method of detecting accumulation of hydrocarbons identified through a three-dimensional picture of the subsurface created by the collection and measurement of the intensity and timing of sound waves transmitted into the earth as they reflect back to the surface. Boe  – Barrel of oil equivalent, determined using a ratio of six Mcf of natural gas equal to one barrel of oil equivalent. The ratio does not assume price equivalency and, given price differentials, the price for a barrel of oil equivalent for natural gas differs significantly from the price for a barrel of oil. A barrel of NGLs also differs significantly in price from a barrel of oil. Bbl  – One barrel or 42 U.S. gallons liquid volume of oil or other liquid hydrocarbons. The following are abbreviations and definitions of terms commonly used in the oil and natural gas industry and within this report. Btu –  British thermal unit, the quantity of heat required to raise the temperature of one pound of water by one-degree Fahrenheit. MMBoe  – One million barrels of oil equivalent, determined using a ratio of six Mcf of natural gas equal to one barrel of oil equivalent. MBoe  – One thousand barrels of oil equivalent, determined using a ratio of six Mcf of natural gas equal to one barrel of oil equivalent. MBbls  – One thousand barrels of crude oil or other liquid hydrocarbons. Joint Operating Agreement  or  JOA  – Any agreement between working interest owners concerning the duties and responsibilities of the operator and rights and obligations of the non-operators. Injection well  – A well which is used to inject gas, water, or liquefied petroleum gas under high pressure into a producing formation to maintain sufficient pressure to produce the recoverable reserves. Hydraulic fracture  or  Frac  – A well stimulation method by which fluid, comprised largely of water and proppant (purposely sized particles used to hold open an induced fracture) is injected downhole and into the producing formation at high pressures and rates in order to exceed the rock strength and create a fracture such that the proppant material can be placed into the fracture to enhance the productive capability of the formation. Horizontal drilling  – A drilling technique that permits the operator to drill horizontally within a specified targeted reservoir and thus exposes a larger portion of the producing horizon to a wellbore than would otherwise be exposed through conventional vertical drilling techniques. Gross acres  or  gross wells  – The total acres or wells, as the case may be, in which a working interest is owned. Field  – An area consisting of a single reservoir or multiple reservoirs all grouped on or related to the same individual geological structural feature and/or stratigraphic condition. Farm-in  or  Farm-out  – An agreement whereby the owner of a working interest in an oil and natural gas lease assigns or contractually conveys, subject to future assignment, the working interest or a portion thereof to another party who desires to drill on the leased acreage. Generally, the farmee is required to drill one or more wells in order to earn its interest in the acreage. The farmor usually retains a royalty and/or an after-payout interest in the lease. The interest received by the farmee is a “farm-in” while the interest transferred by the farmor is a “farm-out.” Exploratory well  – A well drilled to find and produce oil or natural gas reserves in an area or a potential reservoir not classified as proved. Exploitation  – A development or other project which may target proven or unproven reserves (such as probable or possible reserves), but which generally has a lower risk than that associated with exploration projects. Dry hole  or  well  – A well found to be incapable of producing hydrocarbons economically. Development well  – A well drilled within the proved area of an oil or natural gas reservoir to the depth of a stratigraphic horizon known to be productive. Development activities  – Activities following exploration including the drilling and completion of additional wells and the installation of production facilities. Developed acreage  – The number of acres which are allotted or assignable to producing wells or wells capable of production. Completion  – The process of treating and hydraulically fracturing a drilled well followed by the installation of permanent equipment for the production of oil or natural gas, or in the case of a dry hole, the reporting of abandonment to the appropriate regulatory agency. GLOSSARY OF CERTAIN OIL AND NATURAL GAS TERMS 5