KOSMOS ENERGY LTD.
GLOSSARY AND SELECT ABBREVIATIONS
The following are abbreviations and definitions of certain terms used in this report. Unless listed below, all defined terms under Rule 4-10(a) of Regulation S-X shall have their statutorily prescribed meanings.
| "2D seismic data" | Two-dimensional seismic data, serving as interpretive data that allows a view of a vertical cross-section beneath a prospective area. | |
| "3D seismic data" | Three-dimensional seismic data, serving as geophysical data that depicts the subsurface strata in three dimensions. 3D seismic data typically provides a more detailed and accurate interpretation of the subsurface strata than 2D seismic data. | |
| "API" | A specific gravity scale, expressed in degrees, that denotes the relative density of various petroleum liquids. The scale increases inversely with density. Thus lighter petroleum liquids will have a higher API than heavier ones. | |
| "ASC" | Financial Accounting Standards Board Accounting Standards Codification. | |
| "ASU" | Financial Accounting Standards Board Accounting Standards Update. | |
| "Barrel" or "bbl" | A standard measure of volume for petroleum corresponding to approximately 42 gallons at 60 degrees Fahrenheit. | |
| "Bbbl" | Billion barrels of oil. | |
| "Bboe" | Billion barrels of oil equivalent. | |
| "Bcf" | Billion cubic feet. | |
| "boe" | Barrels of oil equivalent. Volumes of natural gas converted to barrels of oil using a conversion factor of 6,000 cubic feet of natural gas to one barrel of oil. | |
| "boepd" | Barrels of oil equivalent per day. | |
| "bopd" | Barrels of oil per day. | |
| "bwpd" | Barrels of water per day. | |
| "Developed acreage" | The number of acres that are allocated or assignable to productive wells or wells capable of production. | |
| "Development" | The phase in which an oil or natural gas field is brought into production by drilling development wells and installing appropriate production systems. | |
| "Dry hole" | A well that has not encountered a hydrocarbon bearing reservoir expected to produce in commercial quantities. | |
| "E&P" | Exploration and production. | |
| "FASB" | Financial Accounting Standards Board. | |
| "Farm-in" | An agreement whereby an oil company acquires a portion of the working interest in a block from the owner of such interest, usually in return for cash and for taking on a portion of the drilling of one or more specific wells or other performance by the assignee as a condition of the assignment. | |
| "FPSO" | Floating production, storage and offloading vessel. | |
| "Mbbl" | Thousand barrels of oil. | |
| "Mcf" | Thousand cubic feet of natural gas. | |
| "Mcfpd" | Thousand cubic feet per day of natural gas. |
| "Mmbbl" | Million barrels of oil. | |
| "Mmboe" | Million barrels of oil equivalent. | |
| "Mmcf" | Million cubic feet of natural gas. | |
| "Natural gas liquid" or "NGL" | Components of natural gas that are separated from the gas state in the form of liquids. These include propane, butane, and ethane, among others. | |
| "Petroleum Contract" | A contract in which the owner of minerals gives an E&P company temporary and limited rights to explore for, develop, and produce minerals from the lease area. | |
| "Petroleum System" | A petroleum system consists of organic material that has been buried at a sufficient depth to allow adequate temperature and pressure to expel hydrocarbons and cause the movement of oil from the area in which it was formed to a reservoir rock where it can accumulate. | |
| "Plan of development" or "PoD" | A written document outlining the steps to be undertaken to develop a field. | |
| "Productive well" | An exploratory or development well found to be capable of producing either oil or natural gas in sufficient quantities to justify completion as an oil or natural gas well. | |
| "Prospect(s)" | A potential trap that may contain hydrocarbons and is supported by the necessary amount and quality of geologic and geophysical data to indicate a probability of oil and/or natural gas accumulation ready to be drilled. The five required elements (generation, migration, reservoir, seal and trap) must be present for a prospect to work and if any of them fail neither oil nor natural gas will be present, at least not in commercial volumes. | |
| "Proved reserves" | Estimated quantities of crude oil, natural gas and natural gas liquids that geological and engineering data demonstrate with reasonable certainty to be economically recoverable in future years from known reservoirs under existing economic and operating conditions, as well as additional reserves expected to be obtained through confirmed improved recovery techniques, as defined in SEC Regulation S-X 4-10(a)(2). | |
| "Proved developed reserves" | Proved developed reserves are those proved reserves that can be expected to be recovered through existing wells and facilities and by existing operating methods. | |
| "Proved undeveloped reserves" | Proved undeveloped reserves are those proved reserves that are expected to be recovered from future wells and facilities, including future improved recovery projects which are anticipated with a high degree of certainty in reservoirs which have previously shown favorable response to improved recovery projects. | |
| "Shelf margin" | The path created by the change in direction of the shoreline in reaction to the filling of a sedimentary basin. | |
| "Structural trap" | A structural strap is a topographic feature in the earth's subsurface that forms a high point in the rock strata. This facilitates the accumulation of oil and gas in the strata. | |
| "Structural-stratigraphic trap" | A structural-stratigraphic trap is a combination trap with structural and stratigraphic features. | |
| "Stratigraphy" | The study of the composition, relative ages and distribution of layers of sedimentary rock. |