An accredited investor has a net worth of $1 million (excluding their primary residence) or has earned $200,000 in each of the last two years and expects to earn the same amount this year, or $300,000 if filing jointly.

A barrel is a unit of measure for oil production in the United States. One barrel equals 42 U.S. gallons (35 imperial gallons) at 60 degrees Fahrenheit. Outside the U.S., oil production is reported in cubic meters.

A basin is a depression in the Earth's crust, formed by tectonic activity and subsidence, where sediments accumulate. Major types include river drainage basins, structural basins, and ocean basins. Basins can develop over thousands of years or rapidly.

Casing consists of steel pipes inserted into a drilled oil well to stabilize it, keep contaminants out, and prevent oil from contaminating groundwater. Casing is installed in layers, decreasing in diameter, forming a string with types including conductor casing, surface casing, intermediate casing, casing liner, and production casing.

A tax deduction allowed by the IRS to account for the reduction in the value of a natural resource like oil, gas, or minerals as it is extracted and used.

Drilling involves constructing wells using excavation techniques to overcome rock resistance, remove rock particles, maintain hole stability, and prevent formation fluids from entering the well.Drilling involves constructing wells using excavation techniques to overcome rock resistance, remove rock particles, maintain hole stability, and prevent formation fluids from entering the well.

ESG criteria are standards used by socially conscious investors to evaluate a company’s operations. Environmental criteria assess stewardship of nature, social criteria evaluate management of relationships with employees and communities, and governance examines leadership, executive pay, audits, and shareholder rights.

A plan executed by an investor, trader, or business owner to liquidate a position or dispose of assets once specific criteria have been met.

Oil fields are areas of land where fossil fuels are extracted. Major oil fields are often located in regions like the Middle East or under the ocean.

Flowback refers to the process fluids collected at the surface after hydraulic fracturing operations, including hydraulic fracturing fluids and volatile hydrocarbons.

The geological formation where oil and gas accumulate, consisting of source rock, reservoir rock, cap rock, and a trap. The formation determines the potential for recoverable oil and gas deposits.

Hydraulic fracturing, or "fracking," is a method of extracting oil, natural gas, geothermal energy, or water from deep underground by fracturing rock formations.

A material that releases energy through chemical reactions or other processes. This includes materials that provide thermal energy or are used for work.

Refers to more efficient methods or technologies in the oil and gas industry that produce energy with a reduced carbon footprint or are more environmentally friendly.

A directional drilling technique where a well is drilled at an angle to a vertical wellbore, increasing production efficiency.

Expenses incurred during well development for items with no resale value, such as labor, surveys, ground clearing, and supplies.

An individual or entity owning land that is leased for oil and gas drilling operations.

A pipe, chamber, or conduit used to carry and distribute fluids or other materials.

Recurring costs associated with maintaining an active well and its equipment, including rent, insurance, and payroll. Costs are shared based on each party's working interest in the well.

An abbreviation for one thousand cubic feet of natural gas. One MCF is approximately 1,000,000 BTUs. For example, a well producing 400 MCF per day yields 400,000 cubic feet of gas daily.

Ownership rights to underground resources like oil, gas, coal, and minerals. Separate from surface rights, which pertain to land use.

A flammable gaseous hydrocarbon, primarily methane, found in association with crude oil.

A legal agreement where the mineral rights owner (lessor) allows an oil and gas company (lessee) access to the minerals and property, typically in exchange for royalty payments.

The part of a reservoir that is producing oil or gas and is economically viable for extraction.

Also known as crude oil, petroleum is a fossil fuel formed from ancient marine organisms.

Reserve pits are used to store mud and wastewater from drilling operations, preventing contamination of groundwater.

Wells that are currently producing oil or gas at economic rates and are actively selling the product.

Locations that have not yet been drilled but are expected to be economically productive and are connected to proved developed wells.

The estimated quantity of natural resources that can be reasonably extracted from a formation, based on geological and engineering data.

Devices essential for transferring process fluids throughout oil and gas operations.

The process of evaluating the depth of surface-breaking indications in materials to determine if they meet acceptance criteria.

A drilling platform used to explore and extract oil and gas. Rigs can also be used for installing subsurface infrastructure.

Payments made to asset owners for the ongoing use of their property, including natural resources.

The process of beginning well drilling by clearing a surface hole and preparing it with casing and cement before drilling to the total depth.

Direct costs of drilling equipment and machinery, such as rigs. These costs are tax-deductible but must be depreciated over seven years.

A market focused on a specific niche, with companies and customers connected by specialized needs and standards.

The hole drilled for exploration and recovery of resources like oil, gas, or water. It can be encased or uncased.

An investment type where the investor covers drilling and operational costs in exchange for a percentage of the oil and gas revenue. A carried working interest is earned after the operator covers drilling costs and sales.