Oil and Gas Terms Just the basics April 16, 2009

Oil Terms Bbl means a barrel of 42 U.S. gallons of oil BOE means barrels of oil equivalent BOE/D means barrels of oil equivalent per day – 1000+ is considered good for a junior

Oil Terms Recycle Ratio: is a measure of the corporation's ability to turn invested capital into cash flow measured on a barrel of oil equivalent basis. The greater the recycle ratio, the greater the profit margin generated for shareholders. - in light of current price 1.5:1 or higher is considered good OOIP: original oil in place

Oil Terms Netback: is calculated by taking all of the revenues from the oil, less all costs associated with getting the oil to a market, basically the profit per barrel. NAV: Net Asset Value considers the present value of after-tax cash flows from reserves (usually at a 10% discount rate) as well as the present value of cash flows from future exploration activity. Current Crude Price: $50.12/Bbl

Gas Terms Mcf: one thousand cubic feet. Six Mcf of natural gas is approximately the energy equivalent of one barrel of oil. Mcf/d: one thousand cubic feet per day MMcf: one million cubic feet of natural gas TCF: one trillion cubic feet of natural gas

Gas Terms BTU: British Thermal Unit MMBTU: one million BTU’s and is the unit of measure for Natural Gas. 1 MMBTU equals 1 MCF Spot price today is: $3.595/mmbtu

Stocks to look at... Some Oil & Gas Stocks to do more due diligence on: Great Plains Explorations (TSX:GPX) Triton Energy (TSXV: TEZ) Cinch Energy (TSXV: CNH) Midnight Oil (TSX: MOX) Vero Energy (TSX: VRO)