Page 45 - Sun Resources Annual Report 2013

Term Description
ASX Australian Stock Exchange (ACN 008 624 691)
barrel/bbl The standard unit of measurement for oil production and sales. One barrel = 159 litres or 42 US gallons
(35 imperial gallons). 1 barrel weighs 306 pounds or 139kg.
bcfge Billion cubic feet of gas equivalent (including gas and liquids)
Board The board of Directors of Sun Resources NL
boepd bop/d Barrels of Oil Equivalent per Day (including oil and gas)
bopd Barrels of oil per day
the company Sun Resources NL
Drilling The act of boring a hole (1) to determine whether hydrocarbons are present in commercially recoverable
quantities and (2) to accomplish production of the hydrocarbons (including drilling to inject fluids). There
are three types of drilling: exploratory - drilling to locate probable hydrocarbon deposits or to establish the
nature of geological structures; such wells may not be capable of production if hydrocarbons are discovered;
developmental - drilling to delineate the boundaries of a known hydrocarbon pools to enhance the productive
capacity of the producing oil & gas property; and directional - drilling that is deliberately made to depart
significantly from the vertical.
EBIT Earnings before interest and tax
farmee Tenant/holder of the farm
farmor Owner/leaser of the farm
Fossil Fuels Fuels (coal, oil, natural gas, etc.) that result from the compression of ancient plant and animal life formed over
millions of years.
frac Fracture stimulation treatment performed on oil and gas wells with low-permeability reservoirs.
Natural Gas An odourless, colourless, tasteless, non-toxic clean-burning fossil fuel. It is usually found in fossil fuel deposits
and used as a fuel.
Hydrocarbons Organic compounds consisting entirely of hydrogen and carbon. Hydrocarbons are the principal constituents of
oil and natural gas.
IPs Initial Production Rates
Mcf Thousand cubic feet of gas
MD Measured Depth, measured by the length of pipe required to reach the bottom
mmbo Million Barrels of Oil
Mmcfg Million cubic feet of gas
Natural Gas Liquids
(NGL)
Substances that can be processed as liquids out of natural gas by absorption or condensation.
NRI Net revenue interest
Petroleum Liquid, gaseous and solid hydrocarbons, including oil, natural gas, gas condensate, ethane, propane, butane
and pentane. Generally refers to crude oil or the refined products obtained from the processing of crude oil
(gasoline, diesel fuel, heating oil, etc.) Petroleum also includes lease condensate, unfinished oils, and natural
gas plant liquids.
Pilot hole A preliminary vertical well drilled from the surface to intersect and evaluate the target formations prior to using
the shallow parts of the well as a guide for drilling the horizontal development well.
Pipeline A continuous length of welded steel pipe that conveys gas from a gas field to its ultimate consumer.
Plugged and
abandoned
When all the reservoir and high-pressure zones in a well are sealed with cement so that no fluid can escape.
Production,
Oil and Gas
The lifting of oil and gas to the surface and gathering, treating, field processing (as in the case of processing
gas to extract liquid hydrocarbons), and field storage.
Reservoir A rock or geological formation that holds petroleum within the pore spaces between individual grains (of sand).
SPA Sale and Purchase Agreement
Sun Sun Resources NL and its subsidiaries
GLOSSARY
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