Investor Services- Glossary
Glossary
ANP: National Petroleum Agency (Agência Nacional de Petróleo, Gás Natural, e Biocombustíveis).
API: The American Petroleum Institute gravity, or API gravity, is a measure of how heavy or light a petroleum liquid is compared to water. If its API gravity is greater than 10, it is lighter and floats on water; if less than 10, it is heavier and sinks.
Barrel or bbl: A stock tank barrel, a standard measure of volume for petroleum corresponding to approximately 159 liters.
Billion boe: Billion barrels of oil equivalent.
BNDES: Brazilian National Bank for Economic and Social Development (Banco Nacional de Desenvolvimento Econômico e Social).
Boe: Barrels of oil equivalent with volumes of natural gas converted to barrels of oil using a conversion factor of 5,615 cf of natural gas to one boe, as per 2007 conversion table from BP Statistical Review of World Energy.
Boepd: Barrels of oil equivalent per day.
Bopd: Barrels of oil per day.
CAGR: Compound annual growth rate.
Central Bank: The Central Bank of Brazil (Banco Central do Brasil).
CMN: Brazilian National Monetary Council (Conselho Monetário Nacional).
CNPE: National Council on Energy Policy (Conselho Nacional de Política Energética).
CONAMA: National Council of the Environment (Conselho Nacional do Meio Ambiente).
Concession: A grant of access for a defined area and time period that transfers certain rights to hydrocarbons that may be discovered from the host country to an enterprise.
COPOM: Central Bank’s Monetary Policy Committee (Comitê de Política Monetária do Banco Central).
CVM: Brazilian Securities and Exchange Commission (Comissão de Valores Mobiliários).
E&P: Exploration and production.
EBX Group: Brazilian industrial group in the natural resources and infrastructure sectors.
EIA: The Energy Information Administration.
Farm-in: A term used to describe when an oil company buys a portion of the acreage in a block from another company, usually in return for cash and for taking on a portion of the selling company's work commitments.
Field: A geographical area under which an oil or gas reservoir lies in commercial quantities.
FPSO: Floating Production, Storage and Offloading system.
FSMA: The Financial Services and Markets Act 2000.
Gross prospective resources: Prospective resources, truncated and adjusted by TEFS, assuming that OGX holds a 100% ownership interest in its exploration blocks.
Gross risked prospective resources: Gross prospective resources adjusted by the probability of economic success.
Hydro Brasil: Hydro Brasil Óleo e Gas Ltda.
IBAMA: The Brazilian Institute of the Environment and Natural Renewable Resources (Instituto Brasileiro do Meio Ambiente e dos Recursos Naturais Renováveis).
IBGC: Brazilian Institute of Corporate Governance (Instituto Brasileiro de Governança Corporativa).
IHS: IHS Inc., company which provides data information in connection with several industry sectors.
Km²: Square kilometers.
Lead: A lead is less well defined and requires additional data and/or evaluation to be classified as a prospect. An example would be a poorly defined closure mapped using sparse regional seismic data in a basin containing favorable source and reservoir(s). A lead may or may not be elevated to prospect status depending on the results of additional technical work.
Natural gas: Natural gas is a combination of light hydrocarbons that, in average pressure and temperature conditions, is found in a gaseous state. In nature, it is found in underground accumulations (onshore or offshore), and may potentially be dissolved in oil (associated) or may also be found in its gaseous state (nonassociated).
Net prospective resources: Gross prospective resources multiplied by OGX’s ownership interest in its exploration blocks, i.e., excluding the ownership interest of OGX’s partners in its exploration blocks.
Net risked prospective resources: Gross risked prospective resources multiplied by OGX’s ownership interest in its exploration blocks, i.e., excluding the ownership interest of OGX’s partners in its exploration blocks.
OECD: Organization for Economic Cooperation and Development.
OPEC: Organization of the Petroleum Exporting Countries.
PEM: Minimum exploratory program (Programa Exploratório Mínimo), means the work program (such as seismic 2D and 3D, potential methods and exploration wells) committed by occasion of the ANP bidding round to be mandatorily accomplished by the concessionaire within the exploration phase of the concession.
Petroleum Law: Law No. 9,478/97, dated August 6, 1997, as amended.
Play: A project associated with a prospective trend of potential prospects, but which requires more data acquisition and/or evaluation in order to define specific leads or prospects.
Probability of economic success: The probability that a given discovery will be economically viable.
Prospect(s): Potential trap which may contain hydrocarbons and is supported by the necessary amount and quality of geologic and geophysical data to indicate a probability of oil and/or natural gas accumulation ready to be drilled. The five required elements (generation, migration, reservoir, seal and trap) must be present for a prospect to work and if any of them fail neither oil nor gas will be present, at least not in commercial volumes.
Prospective resources: Those quantities of petroleum that are estimated, after March 31, 2008, to be potentially recoverable from undiscovered accumulations by application of future development projects. The estimation of resources quantities for a prospect is subject to both technical and commercial uncertainties and, in general, may be quoted as a range. The range of uncertainty reflects a reasonable range of estimated potentially recoverable volumes. In all cases, the range of uncertainty is dependent on the amount and quality of both technical and commercial data that are available and may change as more data become available.
PSTM: Pre Stack Time Migration (method for special processing of seismic data).
Recôncavo E&P: Recôncavo E&P S.A.
Reservoir: A subsurface body of rock having sufficient porosity and permeability to store and to allow for the mobility of fluids/hydrocarbons included in its pores.
SPR: The United States Strategic Petroleum Reserve. Representing a significant portion of the global reserves, these reserves are controlled by the U.S. government with the intend to minimize the impact caused by severe interruptions in the distribution of petroleum.
Tcf: Trillion cubic feet.
Threshold economic field size: The threshold economic field size (TEFS) is the minimum amount of producible petroleum required to recover the total capital expenditure used to establish the prospect as having a potential present worth greater than zero. These investments include expenditures required to establish and prove profitable production and to conduct delineation or confirmation drilling. All geologic, geophysical, lease and/or contract-area acquisition costs and other anticipated field delineation costs are included in the estimation of TEFS as well. Accordingly, where this methodology is employed to estimate TEFS, no additional provision should be made for field development costs.
TOC: Total organic carbon.
Upstream Activities: Related to the exploration, development and production of oil and natural gas.