Glossary

An abandoned well is an oil well or gas well which is no longer in use whether inoperable, in production or classified as a dry hole or left dormant as an inoperable well. Often times, an abandoned well is one which is not being accounted for by the oil operator of record and is not current on necessary regulatory filings. Wells classified under the Texas Railroad Commission as orphan wells are generally abandoned wells.

Acidizing an oil well is the process of pumping acid, generally hydrochloric acid, into an oil reservoir. The acid serves to dissolve built up material, calcite which in turn opens up and enlarges the naturally occurring holes in the rock's surface. This process helps the increase of the flow of fluids in the reservoir. While it is common to treat limestone with acid, sandstone may be acidized or acid treated as well should it contain calcite which does not affect the quarts grains composing the sandstone.

Ad Valorem Tax is a value related tax levied at the county level for producing minerals including hydrocarbons such as crude oil and natural gas.

The AFE or Authorization for Expenditure is the anticipated drilling costs for the drilling and completion of a proposed well. Prior to the drilling or work over of a prospect well, the operator will provide the working interest owners with the estimated well drilling costs or estimated work over costs (AFE) outlining the anticipated expenditures. Costs may be identified as dry hole costs which are costs incurred to drill up the the casing point in addition to the costs to drill, test and complete the well is completion is deemed necessary.

All Clear Energy is a Texas based Oil & Gas Company with an emphasis on Crude Oil Consulting.

An API Number is a unique number which identifies each specific well which is drilled in the United States. The API numbering system was developed by the American Petroleum Institute (API) as a method of identifying each particular well. Generally, an API number will have a up to 14 digits in which the first two digits represent the state code followed by three digits representing the county code. The next five digits indicate the identifying number specific to the well. An additional two digits represent any sidetrack to the well followed by an additional two digits indicating an additional sequence of events. The first two API code digits for wells drilled onshore in Texas is 42 established by the Texas Railroad Commission.

Directional Drilling is when a well bore is drilled at a slant or angle in order to reach the targeted hydrocarbon reservoir or objective. This is generally due to surface obstructions where it would be impractical or impossible to place the drilling rig and surface equipment on the surface such as a lake or pond, park, building or other man-made and natural obstructions.

The Payzone is the anticipated or expected production reservoir indicated by an identified layer of rock. It is not uncommon for a single well bore to have multiple productive reservoirs indicated by several layers or "payzones" at various depths.