GLOSSARY

2D seismic – a seismic survey which produces a two-dimensional image of the subsurface.

3D seismic – a seismic survey which produces a three-dimensional image of the subsurface.

Associated petroleum gas (APG) – a natural gas found with oil, either dissolved into it or as a cap of free gas above it. APG contains significant quantities of ethane, propane, butane and other saturated hydrocarbons. APG can be utilized in two areas:
a) energy – to produce power for oil field purposes
b) petrochemistry – refined to produce dry gas (supplied to main pipeline), natural gasoline, natural gas liquids and liquefied gas for domestic consumption.

bbl – barrel (1 bbl = 0.135 metric tons)

boe – barrels of oil equivalent. Boe is a measurement of gas by its thermal equivalent in barrels of crude oil.

Condensate – light hydrocarbons produced with natural gas. Condensate condenses into a liquid at normal temperatures and pressures.

EBITDA – earnings before interest, taxes, depreciation and amortization.

ESP – electric submersible pump.

Inhibition – the action of treating pipelines with chemicals (inhibitors) to slow down metal corrosion.

Net debt – long-term and short-term debt less cash and cash equivalents.

Organic capital expenditure – capital expenditure excluding acquisitions.

Possible reserves – reserves that may exist but are less well-defined by well control than probable reserves. Possible reserves include:
a) reserves based on log interpretation and other evidence of hydrocarbon saturation in zones behind the pipe in existing wells
b) possible extensions to proven and probable reserve areas where indicated by geophysical and geological studies
c) those to be recovered by enhanced recovery methods where data is insufficient to classify the reserves as proven or probable.

Probable reserves – reserves that are based on reasonable evidence of producible hydrocarbons within the limits of a structure or reservoir above known or inferred fluid contacts. They have been defined to a lesser degree of certainty than proven reserves because of limited well control and/or the lack of definitive production tests.

Proved reserves – estimated quantities of crude oil, and/or natural gas which, based on geological and engineering data, with reasonable certainty, can be recovered in the future from known reservoirs under existing economic and operating conditions.

PRMS – Petroleum Resources Management System, formerly Society of Petroleum Engineers (SPE); a methodology that provides a reflection of the total resources available to be managed over the whole life of a field. PRMS guidelines rely to a large extent on continuity of reservoir geology rather that production.

Remediation – the action of removing pollution or contaminants from soil, groundwater, sediment or surface water to protect public health and the environment or from a brownfield site intended for redevelopment.

Reserve replacement ratio – ratio of total proven reserves added in a given year to that year’s production.

ROACE – return on average capital employed. This is calculated as the ratio of net income to average capital employed; average capital employed is calculated as the average sum of total shareholder equity, minority interest, long-term and short-term debt at the beginning and end of a period.

SEC – the U.S. Securities and Exchange Commission. The standard for proven reserves requires that continuity of production be demonstrated.

Abbreviations

2P (reserves) – proved and probable (reserves)

3P (reserves) – proved, probable and possible (reserves)

APG – associated petroleum gas

HSE – health, safety and environment

LOF – life of field

OGP – The International Association of Oil and Gas Producers

PRMS – Petroleum Resources Management System

SEC – US Securities and Exchange Commission

Units

bbl – barrel (1 bbl = 0.134 metric tons)

bcm – billion cubic meters

bcma – billion cubic meters per annum

b/d – barrels per day

bln – billion

boe – barrel of oil equivalent

cub. m – cubic meters

ft. – feet

ha – hectare

km – kilometer

kt – thousand tones

mb/d – thousand barrels per day

mboe/d – thousand barrels of oil equivalent per day

mln – million

mmbbl – million barrels

mmb/d – mln barrels per day

mmboe – million barrels of oil equivalent

mmboe/d – mln barrels of oil equivalent per day

mmcm – million cubic meters

mmt – million tones<

RUB – rouble

sq. km – square kilometer

th. – thousand

tons/d – tons per day

USD – US dollar