Page 42 - Sun Resources 2014 Annual Report

GLOSSARY
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, bcfge Billion cubic feet of gas equivalent (including gas and liquids)
Board The Board of Directors of Sun Resources NL
Boepd, boepd Barrels of oil equivalent per day (including oil and gas)
Bopd, bopd Barrels of oil per day
Btu, btu British thermal unit. The amount of heat required to raise the temperature of one pound of water one degree
Fahrenheit; equal to 252 calories.
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, mcf Thousand cubic feet of gas
MD Measured Depth, measured by the length of pipe required to reach the bottom
MMbo, mmbo Million barrels of oil
MMcfg, 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
Tank Farm An installation used by trunk and gathering pipeline companies, crude oil producers, and terminal operators (except
refineries) to store crude oil
Tcf, tcf Trillion cubic feet (of natural gas)
TD Total Depth. The planned deepest measured depth of the well
TVD True Vertical Depth. The shortest vertical distance from a point in the well (usually the current or final depth) to an
equivalent point at the surface, usually the elevation of the rotary kelly bushing (RKB)
Well A hole drilled in the earth for the purpose of (1) finding or producing crude oil or natural gas; or (2) producing
services related to the production of crude or natural gas
Wellhead The point at which the crude (and/or natural gas) exits the ground
WI Working Interest
1P Proved (90% confidence that the reserve is recoverable)
2P Proved and Probable (at least 50% probability that reserves recovered will exceed Proven plus Probable reserves)
3P Proved, Probable and Possible (reserves that to a low degree of certainty (10% confidence) are recoverable)
3P Reserves Proved, Possible and Probable
40  SUN RESOURCES ANNUAL REPORT 2014