- AFE (Authorization for Expenditure) – an estimate of drilling costs provided by the operator to general partners prior to drilling.
- BBL (Barrel) – the standard unit of measurement used by the US Oil Industry, equal to 42 US gallons.
- Basin – natural depression where sediments accumulate over millions of years
- Completion – the process by which a well is made ready for commercial production after the well is drilled.
- Crude Oil – the natural mixture of liquid hydrocarbons as it leaves the ground and prior to distilling and/or refining.
- Front End Costs – expenses that are incurred and paid from the initial investment in a venture before the venture activities commence.
- IDC (Intangible Drilling Costs) – expenses like wages, repairs, hauling, fuel, water, and drill bits.
- Lease – a contract whereby the owner of mineral rights conveys the exclusive right to another party to explore and develop the minerals on the property, usually for a specified period of time.
- Pay Zone – the interval of rock from which oil and natural gas is expected to be produced in commercial quantities.
- Spud – to start the initial drilling operations.
- Working Interest – the exclusive right to explore for oil and gas, including the obligation to pay the costs of drilling, completion, and producing any oil and natural gas found.
