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"Gas Lingo"

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By eagle

Posted: Friday Aug 4 8:16:44AM 2006

You will almost always see something like the following paragraph when gas is presented as "oil equivelent". Typically, companies use 6,000 cf of gas = 1 barrel of oil. Significant to note that the conversion is based on energy value, not dollars. Obviously it is important to consider what portion of gas makes up a companies "boepd" and the current price/energy difference between gas & oil. BOE presentation — The term barrels of oil equivalent “BOE” may be misleading, particularly if used in isolation. The BOE conversion ratio used by the Corporation of 6 mcf: 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. All BOE conversions in this report are derived by converting gas to oil in the ratio of six thousand cubic feet of gas to one barrel of oil.

By griffith

Posted: Wednesday Aug 2 6:24:07AM 2006

Can someone clarify/explain certain gas terms, particularly pay zone and flow rate? Specifically, what amounts (quantitatively) would be considered low, moderate or high of each? Thanks!

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