Acid Gas
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The component of natural gas made up of hydrogen sulfide (H2S), carbon dioxide (CO2), or a combination of the two, which are referred to as acid gas because they form acids or acidic solutions in the presence of water
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| ASC |
Alberta Securities Commission |
| boe |
Barrel(s) of oil equivalent (6Mcf gas = 1 bbl crude oil). Unless otherwise stated, six thousand cubic feet (6 mcf) of natural gas is equal to one barrel of oil equivalent. |
| boe/d |
Barrel of oil equivalent per day |
| Capital Expenditures |
Investment of financial resources |
| Convertible Debentures |
A long term unsecured corporate bond that can be exchanged for units |
| Distributable Cash |
Amounts available for distribution to holders of Trust units during an applicable period. Most trusts are under no legal obligation to pay distributions and the amount paid may fluctuate. |
| Distribution Date |
The 15th of the month following any Distribution Record Date |
| Distribution Record Date |
The date that an investor must be on record as being a holder of the unit in order to be eligible to receive the distribution for that period |
| Ex-Distribution Date |
Holders of units purchased prior to the Ex-Distribution Date are entitled to the declared distribution paid on the 15th of the next month; Ex-Distribution date is two business days prior to the Distribution Record Date
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| Enterprise Value |
Market capitalization (equity) plus net debt |
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| EOR |
Enhanced Oil Recovery (see miscible flood) |
| Farm-in |
An outside party paying a land owner a percentage of the drilling costs of a well in exchange for a working interest in the well |
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| Farm-out |
An agreement where a land owner (company or individual) allows a company to drill on their land in exchange for a working interest in the well |
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| Finding & Development costs (F&D) |
The costs to find and develop a abrrel of oil equivalent, expressed in dollars per boe |
| Hedging
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Involves offsetting or protecting against the risk of adverse price movements, while simultaneously preserving the possibility of profiting from favorable price movements
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| Hedging (Participatory) |
A hedging strategy that has an absolute floor price while participating in a portion of the upside potential |
| Infill drilling |
Wells drilled within a developed oil or gas pool to increase production rates, the recovery factor and the reserves of the pool |
| Liquidity |
The ability to meet financial obligations as they come due |
| Market Capitalization |
Calculated by multiplying the outstanding units by the day’s closing market price as per the TSX or AMEX |
| Mboe |
Thousands of barrels of oil equivalent |
| mcf |
Thousand cubic feet |
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| Miscible flood |
Miscible floods involve injecting gases (such as carbon dioxide or hydrogen sulphide) into a productive oil pool to stimulate increased movement of the oil in the reservoir. This increases oil production and the recovery factor. This method of increasing oil recovery is also referred to as a "tertiary recovery" method or EOR (Enhanced Oil Recovery) |
| Mmboe |
Millions of barrels of oil equivalent |
| Nebt debt |
long-term debt less working capital |
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| Net Production |
The working interest share of gross production |
| Netback |
The amount received from the sale of a barrel of oil or barrel of oil equivalent after deduction of operating costs and royalty payments |
| NI 51-102 |
National Instrument 51-102 Continuous Disclosure Obligations – a new rule to be implemented March, 2004; the regulations strive to ensure there is one set of continuous reserve disclosure rules across Canada |
| Operating costs |
Expenses incurred to recover oil or natural gas from a well exclusive of capital expenditures |
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| Optimization |
Optimization can involve such operations as modification of processes and equipment, addition or reduction of equipment, or replacement of existing equipment. These optimization may manage operating costs, improve volume throughput, reduce environmental impact, or any combination of these improvements. This could result in higher oil and gas recovery factors due to reduced operating pressure or costs |
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| OOIP/OGIP |
Original Oil in Place/Original Gas in Place
Orginal Oil in Place and Original Gas In Place refer to the estimated physical volumes of oil or gas that exist within a reservoir prior to any production. These are estimated using various methods and can change over time |
| OSC |
Ontario Securities Commission |
| Payout Ratio |
The percentage of distributions as a percentage of funds flow from operations |
| Price Cap/Floor |
A hedging concept that contractually establishes a maximum and a minimum price to be paid for a security or commodity over a specific period of time |
| Probable Reserves |
Reserves with a higher degree of risk associated with its ultimate realization |
| Proved Developing Producing Reserves (PDP) |
Reserves currently on production and typically require minimal additional capital to realize |
| Proved Non-producing reserves (PNP) |
Reserves that require additional capital to put on production; generally needs to be equipped or tied in |
| Proved Undeveloped Reserves (PUD) |
Reserves that require additional capital to put on production; generally needs to be drilled, completed and tied in |
| Record date |
The date by which a unitholder must officially own units in order to be entitled to a distribution |
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| Recovery factor |
This is the economic recovery percentage of OOIP and OGIP volumes. For example, if a reservoir containing 100 million barrels of OOIP has a recovery factor of 25%, the ultimate recovery from that reservoir would be 25 million barrels of oil. A 1% increase in recovery factor would mean an additional 1 million barrels of reserves would be recovered. In this example, if 5 million barrels of oil have been recovered or produced, then 20 million barrels would be remaining. These remaining recoverable barrels make up the reserves for that pool. |
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| Reserves |
Reserves are the quantities of oil and gas that are expected to be commercially recovered from known oil and gas accumulations |
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| Reserve Life Index (RLI) |
Represents the longevity of reserves and is determined by dividing the reserves base by the current annual production rate |
| Royalty |
The portion of production or revenue renumerated to the owner of the mineral rights as compensation for leasing those mineral rights |
| TSX |
Toronto Stock Exchange – Vault symbol is VNG.un |
| Waterflood |
Waterfloods involve injecting water into a productive oil pool to help push more oil into existing producing wells and increasing the recovery factor of the pool. This methd of increasing oil recovery is also referred to as a "secondary recovery" method |
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| Working Interest |
The interest held in a property that indicates the owners’ share of obligations, such as costs associated with the property, as well as the owners’ share of the benefits, such as the production of revenue, after royalties are deducted |
| WTI |
West Texas Intermediate. The benchmark crude type in North America with an API gravity of 38-39°, priced at Cushing, Oklahoma |
| Yield |
cash-on-cash yield is the most recent distribution on an annualized basis divided by the current unit price |
