Glossary
Oil & gas and mineral rights terminology used throughout Sondio.
Well Data
API Number
The API (American Petroleum Institute) well number is a unique numeric identifier assigned to every wellbore drilled in the United States. The format follows the pattern: state code (2 digits) + county code (3 digits) + well code (5 digits), with optional sidetrack and completion suffixes. Each state's oil and gas commission assigns these numbers.
Well Name
The well name is chosen by the operator and typically references the lease name, surface landowner, or geographic feature. Naming conventions vary by operator. A single lease may have multiple wells distinguished by a number suffix (e.g., "Smith Ranch #3").
Well Status
Well status indicates the current operational state as reported to the state commission. Common statuses include: producing (actively extracting hydrocarbons), shut-in (temporarily inactive but capable of production), plugged (permanently sealed and abandoned), permitted (approved but not yet drilled), and drilling (currently being drilled).
Well Type
Well type describes the primary purpose or product of the well. Oil wells primarily produce crude oil, gas wells primarily produce natural gas, injection wells push fluid underground to maintain reservoir pressure, and disposal wells inject produced water or waste fluids into approved formations.
Spud Date
The spud date marks when the drill bit first penetrates the ground surface to begin drilling the wellbore. This is a key milestone in well development and is reported to the state commission. The term "spud" comes from the spudding tool historically used to start a hole.
Completion Date
The completion date marks when drilling and well construction are finished and the well is equipped for its intended purpose (production, injection, etc.). Completion involves perforating the casing, installing tubing, and sometimes hydraulic fracturing to connect the wellbore to the target formation.
Depth
The total depth (TD) is the measured length of the wellbore from the surface to its deepest point, reported in feet. For vertical wells this approximates the true vertical depth; for directional or horizontal wells, measured depth can be significantly greater than vertical depth.
Wellbore
The wellbore is the actual drilled hole, including the open hole and any cased sections. A single surface location may have multiple wellbores (sidetracks) branching off at different depths to reach different parts of the reservoir.
Formation
A formation is a distinct layer of rock with consistent characteristics, identified by geologists and given a name (e.g., Wolfcamp, Eagle Ford, Bakken). Wells target specific formations known or believed to contain oil or gas. The target formation influences drilling depth, well design, and expected production.
Production
Oil (BBL)
Oil production is reported in barrels (BBL), where one barrel equals 42 US gallons. Monthly production reports show total barrels produced during the reporting period. Production volumes help assess well performance and calculate royalties owed to mineral interest owners.
Gas (MCF)
Gas production is reported in MCF (thousand cubic feet). One MCF equals 1,000 cubic feet of natural gas at standard temperature and pressure. You may also see MMCF (million cubic feet) or BCF (billion cubic feet) for larger volumes. Gas is often produced alongside oil (associated gas) or as the primary product of a gas well.
Water (BBL)
Produced water is the water that comes to the surface along with oil and gas. It is measured in barrels (BBL) and must be properly disposed of, typically via disposal wells or recycling. High water production relative to oil or gas can indicate declining well performance.
Days Producing
Days producing indicates how many days within a monthly reporting period the well was actually flowing or pumping. A well may not produce every day due to maintenance, weather, or market conditions. This figure is important for normalizing production rates (e.g., barrels per day).
Permits
Permit Number
The permit number is assigned by the state commission when it approves an operator's application to drill, re-enter, plug, or perform other well operations. It uniquely identifies the regulatory filing and is used to track the permit through its lifecycle.
Permit Type
Permit type classifies the approved activity. Common types include: new drill (drilling a new well), recompletion (re-working an existing well to produce from a different formation), plug (permanently sealing a well), and workover (maintenance or modifications to an existing well).
Permit Date
The permit date is when the state oil and gas commission officially approved the operator's application. Recent permit activity in an area can signal new drilling interest and is closely watched by landmen and mineral owners.
Ownership & Title
Mineral Interest
A mineral interest is the legal right to the subsurface minerals (oil, gas, coal, etc.) under a tract of land. In the US, mineral rights can be separated ("severed") from surface rights and bought, sold, leased, or inherited independently. The mineral interest owner has the right to develop or lease the minerals.
Royalty
A royalty is the mineral owner's share of production revenue, typically expressed as a fraction (e.g., 1/8 or 3/16). The royalty owner receives this share without bearing any drilling or operating costs. Royalty rates are negotiated as part of the oil and gas lease.
Net Revenue Interest
Net revenue interest (NRI) is the percentage of production revenue an interest owner actually receives, accounting for all royalties, overriding royalties, and other burdens on the lease. For example, if an operator holds a 100% working interest in a lease with a 1/8 royalty, their NRI is 87.5%.
Division Order
A division order is a contract between the purchaser of oil or gas and each interest owner, specifying the decimal fraction of revenue each party receives. It is based on the title opinion and reflects the chain of ownership. Mineral owners must sign a division order before receiving royalty payments.
Severance
Severance occurs when the mineral estate is legally separated from the surface estate, creating two distinct ownership interests in the same tract of land. Once severed, the mineral rights can be independently bought, sold, leased, or inherited without affecting the surface owner.
Lease
An oil and gas lease is a contract between the mineral owner (lessor) and an operator (lessee) granting the right to drill for and produce oil and gas. Key terms include the royalty rate, primary term (duration before drilling must begin), bonus payment (upfront), and delay rentals (annual payments to maintain the lease without drilling).
Chain of Title
The chain of title is the sequence of recorded documents (deeds, probates, leases, assignments) that trace ownership of a mineral interest from the original grant to the present day. Landmen research the chain of title to verify current ownership and identify any gaps, conflicts, or encumbrances.
Title Opinion
A title opinion is a formal legal document prepared by an attorney who has examined the chain of title. It identifies the current mineral owners, their fractional interests, and any title defects or requirements that must be resolved before drilling or leasing can proceed.
Conveyance
A conveyance is any recorded instrument (deed, assignment, gift) that transfers property interest from one party to another. Mineral conveyances must be properly recorded in the county records to establish legal ownership. Common types include warranty deeds, quit claim deeds, and mineral deeds.
Tract
A tract is a specific, legally described parcel of land. In oil and gas work, a tract is the fundamental unit for tracking mineral ownership. A single tract may have multiple mineral owners due to historical conveyances and inheritance. Landmen analyze tracts to determine who owns the minerals before leasing can proceed.
Regulatory
Operator
The operator is the company that holds the working interest and is responsible for drilling, completing, and operating the well. The operator files permits, reports production, and is the primary regulatory contact with the state commission. A well has exactly one designated operator at any given time, though operatorship can transfer.
Texas Railroad Commission (TX RRC)
The Railroad Commission of Texas (RRC) is the state agency that regulates the oil and gas industry, pipeline transporters, natural gas utilities, and surface mining in Texas. Despite its name, it no longer regulates railroads. It is the primary source for Texas well data, permits, and production reporting.
Oklahoma Corporation Commission (OK OCC)
The Oklahoma Corporation Commission (OCC) is the state agency that regulates oil and gas drilling, production, and environmental compliance in Oklahoma. It issues drilling permits, tracks well status, and collects production data from operators.
Source Run
A source run represents one execution of a Runsheet data extractor. Each run records when it started, when it completed, how many records were found, how many were new or updated, and whether any errors occurred. This allows monitoring of data freshness and extractor health.
Geography
Basin
A sedimentary basin is a large-scale geological depression where layers of sediment (and the oil and gas they contain) have accumulated over millions of years. Major US basins include the Permian (TX/NM), Williston (ND/MT), Anadarko (OK/TX), and Denver-Julesburg (CO). Basin is a key filter for searching well data.
County
County is the primary sub-state geographic unit used by state commissions to organize oil and gas records. Well permits, production reports, and regulatory filings are indexed by county. In Louisiana, the equivalent unit is called a parish.