1. Oil and Gas Terms Just the basics
April 16, 2009

2. Oil Terms Bbl means a barrel of 42 U.S. gallons of oil
BOE means barrels of oil equivalent
BOE/D means barrels of oil equivalent per day – is considered good for a junior

3. Oil Terms
Recycle Ratio: is a measure of the corporation's ability to turn invested capital into cash flow measured on a barrel of oil equivalent basis. The greater the recycle ratio, the greater the profit margin generated for shareholders. - in light of current price 1.5:1 or higher is considered good
OOIP: original oil in place

4. Oil Terms
Netback: is calculated by taking all of the revenues from the oil, less all costs associated with getting the oil to a market, basically the profit per barrel.
NAV: Net Asset Value considers the present value of after-tax cash flows from reserves (usually at a 10% discount rate) as well as the present value of cash flows from future exploration activity.
Current Crude Price: $50.12/Bbl

5. Gas Terms
Mcf: one thousand cubic feet. Six Mcf of natural gas is approximately the energy equivalent of one barrel of oil.
Mcf/d: one thousand cubic feet per day
MMcf: one million cubic feet of natural gas
TCF: one trillion cubic feet of natural gas

6. Gas Terms BTU: British Thermal Unit
MMBTU: one million BTU’s and is the unit of measure for Natural Gas.
1 MMBTU equals 1 MCF
Spot price today is: $3.595/mmbtu

7. Stocks to look at...
Some Oil & Gas Stocks to do more due diligence on:
Great Plains Explorations (TSX:GPX)
Triton Energy (TSXV: TEZ)
Cinch Energy (TSXV: CNH)
Midnight Oil (TSX: MOX)
Vero Energy (TSX: VRO)