Avner Oil - Annual Report 2011 - Delek Energy Systems

GlossaryAppraisal well: a drilling carried out as part of the appraisal drilling plan, to determine the physical size, oilor gas reserves and the production rate of the fieldAVO analysis: is used by geophysicists to determine the thickness of rock layers, porosity, density, velocity,lithology and fluid content in rocksBCF: billions of cubic feet, which is 0.001 TCF or 0.0283 BCMBCM: million cubic metersCommercial quantities: a quantity of oil, sufficient for production on a commercial basisConfirmation well: a drilling to confirm the existing of the oil reservoir that was discovered in the discoverydrilling, and verification of the production tests in the discovery drilling.Development: drilling and equipping of the oil asset area to determine its production capacity and for oilproduction and marketingDirectional drilling: diagonal drilling towards the target layer, compared to regular vertical drillingEvaporites: Sediment formed by evaporation of water containing primarily salt or gypsumExploration: operations related to the search for oil and gasHolder of participation units: an entity listed in the Register of Participation Holders as the owners of theparticipation unitsHorizontal drilling: drilling of a well that travels horizontally through a producing layerHydrocarbons: carbons, a generic name for oil and gas, which are coal and hydrogen compoundsJurassic layer: rocks from a geological period dating from about 144 million to 208 million years agoLease: as defined in the Petroleum Law, see also section 9.28.1 aboveLevant Basin: The geological basin in the eastern portion of the MediterraneanLGN: liquid natural gasLicense: as defined in the Petroleum Law, see also section 9.28.1 aboveLogs: electric logs recorded during drilling, providing a continuous record of rock properties and content, tolocate the potential layers that could contain oil or gas reservesMiocene layer: rocks from a geological period dating from about 5 million to 24 million years agoMmcf/D: millions of cubic feet per dayMmcf: millions of cubic feet, which is 0.001 BCF or 0.0003 BCMOil asset: the lease, direct or indirect, in a preliminary permit, license or lease; in another country – thelease, direct or indirect, in a similar right granted by a competent party. The oil asset is also regarded as theright to receive benefits arising from the lease, direct or indirect, in the oil asset or in a similar right (as thecase may be).Oil exploration: (1) test drilling; (2) any other operation for oil exploration, including geological, geophysicaland geochemical tests, and drilling to achieve geological information onlyOil field: an area with geological layers under which an oil reservoir lies with potential for commercialproductionOil right: a license or lease, as defined in the Petroleum LawOil: any petroleum fluid, whether liquid or gaseous and includes oil, natural gas, natural gasoline,condensates and (carbons) hydrocarbons and also asphalt and other solid petroleum hydrocarbons whendissolved in and producible with fluid petroleumPetroleum Resources Management System (2007) (SPE-PRMS): as published by the Society ofPetroleum Engineers, the American Association of Petroleum Geologists (AAPG), the World PetroleumCouncil (WPC) and the Society of Petroleum Evaluation Engineers (SPEE) and as revised from time to time.The detailed definitions in this system as of the date of the report are attached as Appendix J to this section.Petroleum; Prospective Resources; Discovered; Discovery; Reserves; Contingent Resources; ProvedReserves; Probable Reserves; Low Estimate; Best Estimate; High Estimate; 1C, 2C, 3C ContingentA-195