Kosmos Energy 2013 Annual Report 2013 (with 10K) | Page 11

‘‘MBbl’’ . . . . . . . . . . . . . . . . . . . . . . Thousand barrels of oil. ‘‘Mcf’’ . . . . . . . . . . . . . . . . . . . . . . . Thousand cubic feet of natural gas. ‘‘Mcfpd’’ . . . . . . . . . . . . . . . . . . . . . . Thousand cubic feet per day of natural gas. ‘‘MMBbl’’ . . . . . . . . . . . . . . . . . . . . . Million barrels of oil. ‘‘MMBoe’’ . . . . . . . . . . . . . . . . . . . . . Million barrels of oil equivalent. ‘‘MMcf’’ . . . . . . . . . . . . . . . . . . . . . . Million cubic feet of natural gas. ‘‘Natural gas liquid’’ or ‘‘NGL’’ . . . . . . Components of natural gas that are separated from the gas state in the form of liquids. These include propane, butane, and ethane, among others. ‘‘Petroleum contract’’ . . . . . . . . . . . . . A contract in which the owner of hydrocarbons gives an E&P company temporary and limited rights, including an exclusive option to explore for, develop, and produce hydrocarbons from the lease area. ‘‘Petroleum system’’ . . . . . . . . . . . . . . A petroleum system consists of organic material that has been buried at a sufficient depth to allow adequate temperature and pressure to expel hydrocarbons and cause the movement of oil and natural gas from the area in which it was formed to a reservoir rock where it can accumulate. ‘‘Plan of development’’ or ‘‘PoD’’ . . . . A written document outlining the steps to be undertaken to develop a field. ‘‘Productive well’’ . . . . . . . . . . . . . . . . An exploratory or development well found to be capable of producing either oil or natural gas in sufficient quantities to justify completion as an oil or natural gas well. ‘‘Prospect(s)’’ . . . . . . . . . . . . . . . . . . A potential trap that may contain hydrocarbons and is supported by the necessary amount and quality of geologic and geophysical data to indicate a probability of oil and/or natural gas accumulation ready to be drilled. The five required elements (generation, migration, reservoir, seal and trap) must be present for a prospect to work and if any of them fail neither oil nor natural gas will be present, at least not in commercial volumes. ‘‘Proved reserves’’ . . . . . . . . . . . . . . . . Estimated quantities of crude oil, natural gas and natural gas liquids that geological and engineering data demonstrate with reasonable certainty to be economically recoverable in future years from known reservoirs under existing economic and operating conditions, as well as additional reserves expected to be obtained through confirmed improved recovery techniques, as defined in SEC Regulation S-X 4-10(a)(2). ‘‘Proved developed reserves’’ . . . . . . . . Proved developed reserves are those proved reserves that can be expected to be recovered through existing wells and facilities and by existing operating me F