JPMorgan - KASE
JPMorgan - KASE JPMorgan - KASE
APPENDIX A: Glossary of Selected Oil and Natural Gas Terms The following are definitions of certain oil and natural gas terms used in this offering memorandum: API gravity .................... An indication of density of crude oil or other liquid hydrocarbons as measured by a system recommended by the American Petroleum Institute, API, measured in degrees relative to the specific gravity scale. The higher the API gravity measure, the lighter the compound. For example, asphalt has an API gravity of 8, and gasoline has an API gravity of 50. Bbl ............................ Abbreviationforabarrel,whichis42U.S.gallons. BFPD .......................... Barrelsoffluidperday. BOPD ......................... Barrelsofoilperday. Completion ................... Development well ............. Exploratory well ............... Installation ofpermanent equipment for the production of oil or gas, or in the case of a dry hole, the reporting of abandonment to the appropriate agency. A well drilled within the proved area of an oil or gas reservoir to the depth of a stratigraphic horizon known to be productive. Awelldrilled to find and produce oil or gas in an unproved area, to find a new reservoir in a field previously found to be productive of oil or gas in another reservoir, or to extend a known reservoir. FCAsales..................... Export sales made under freight carriage assurance terms. Title to the crude oil passes in Kazakhstan, normally at the rail terminal at Tekesu, adjacent to the Shymkent refinery. The price achieved for these export sales is shown net of a differential to the prevailing Brent price at the time of the sale. Field .......................... An area consisting of a single reservoir or multiple reservoirs all grouped on or related to the same individual geological structure feature and/or stratigraphic condition. future net cash flows .......... Amounts that are the result of subtracting future development and production costs and future income tax expenses from future cash inflows. Future cash inflows are computed by applying year-end prices of oil and gas relating to the enterprise’s proved reserves to the year end quantities of those reserves. Gross ......................... Mazut ......................... Mbbls ......................... MMbbls ....................... MMcfd ........................ Net ........................... Gross oil and gas wells or gross acres are the total number of wells or acres in which we have an interest, without regard to the size of that interest. Heavy fuel oil. Onethousand barrels of oil or other liquid hydrocarbons. Onemillion barrels of oil or other liquid hydrocarbons. Onemillion cubic feet of natural gas per day. Net oil and gas wells or net acres are determined by multiplying gross wells or acres by our working interest in those wells or acres. A-1
Non-FCA sales ................ Oil ............................ Operator ...................... Payout ........................ Export sales made on terms under which title passes to crude oil outside Kazakhstan. Under these sales, we arrange all transportation to the port and assume the obligation for this transportation. These sales include sales made FOB (free on board), CIF (cost, insurance and freight), CPT (carriage paid to) and DAF (delivery at Frontier). In the tables in this offering memorandum, these sales are shown as “Crude sales sold FOB”. Crudeoilandcondensate. The individual or company responsible for conducting oil and gas exploration, development and production activities on an oil and gas lease or concession on its own behalf and, if applicable, for other working interest owners, generally pursuant to the terms of a joint operating agreement or comparable agreement. Recoupment of costs of production by a driller or developer. present value ................. When used with respect to oil and gas reserves, the estimated future gross revenues to be generated from the production of proved reserves, net of estimated production and future development cost, using prices and costs in effect as of the date indicated without future escalation, except as otherwise provided by contract, without giving effect to non-property related expenses such as general and administrative expenses, debt service and future income tax expenses or to depreciation, depletion and amortization, discounted using specified discount rates. Producing well ................ Proved developed producing reserves ..................... A well that is producing oil or gas or that is capable of production. Proved reserves that are actually on production, or if not producing, that could be recovered from existing wells or facilities and where the reason for the current nonproducing status is the choice of the owner. Reserves assigned to non-producing zones in producing wells were classified as producing if the reserve quantities were estimated to be minor relative to our reserves in the area. proved developed nonproducing reserves .......... Reserves recoverable from existing wells that require relatively minor capital expenditures to produce. proved developed reserves .... proved reserves ............... proved undeveloped reserves . . Reserves that can be expected to be recovered through existing wells with existing equipment and operating methods under existing economic and operating conditions. Estimated quantities of crude oil, natural gas and natural gas liquids which geological and engineering data demonstrate with reasonable certainty to be recoverable in future years from known reservoirs under existing economic and operating conditions, i.e., prices and costs as of the date the estimate is made. Reserves that are expected to be recovered from new wells on undrilled acreage, or from existing wells where a relatively major expenditure is required for recompletion. A-2
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- Page 191 and 192: accordance with current legislation
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APPENDIX A: Glossary of Selected Oil and<br />
Natural Gas Terms<br />
The following are definitions of certain oil and natural gas terms used in this offering<br />
memorandum:<br />
API gravity .................... An indication of density of crude oil or other liquid<br />
hydrocarbons as measured by a system recommended by<br />
the American Petroleum Institute, API, measured in degrees<br />
relative to the specific gravity scale. The higher the API<br />
gravity measure, the lighter the compound. For example,<br />
asphalt has an API gravity of 8, and gasoline has an API<br />
gravity of 50.<br />
Bbl ............................ Abbreviationforabarrel,whichis42U.S.gallons.<br />
BFPD .......................... Barrelsoffluidperday.<br />
BOPD ......................... Barrelsofoilperday.<br />
Completion ...................<br />
Development well .............<br />
Exploratory well ...............<br />
Installation ofpermanent equipment for the production of<br />
oil or gas, or in the case of a dry hole, the reporting of<br />
abandonment to the appropriate agency.<br />
A well drilled within the proved area of an oil or gas<br />
reservoir to the depth of a stratigraphic horizon known to<br />
be productive.<br />
Awelldrilled to find and produce oil or gas in an unproved<br />
area, to find a new reservoir in a field previously found to<br />
be productive of oil or gas in another reservoir, or to extend<br />
a known reservoir.<br />
FCAsales..................... Export sales made under freight carriage assurance terms. Title<br />
to the crude oil passes in Kazakhstan, normally at the rail<br />
terminal at Tekesu, adjacent to the Shymkent refinery. The<br />
price achieved for these export sales is shown net of a<br />
differential to the prevailing Brent price at the time of the<br />
sale.<br />
Field .......................... An area consisting of a single reservoir or multiple<br />
reservoirs all grouped on or related to the same individual<br />
geological structure feature and/or stratigraphic condition.<br />
future net cash flows .......... Amounts that are the result of subtracting future<br />
development and production costs and future income tax<br />
expenses from future cash inflows. Future cash inflows are<br />
computed by applying year-end prices of oil and gas<br />
relating to the enterprise’s proved reserves to the year end<br />
quantities of those reserves.<br />
Gross .........................<br />
Mazut .........................<br />
Mbbls .........................<br />
MMbbls .......................<br />
MMcfd ........................<br />
Net ...........................<br />
Gross oil and gas wells or gross acres are the total number<br />
of wells or acres in which we have an interest, without<br />
regard to the size of that interest.<br />
Heavy fuel oil.<br />
Onethousand barrels of oil or other liquid hydrocarbons.<br />
Onemillion barrels of oil or other liquid hydrocarbons.<br />
Onemillion cubic feet of natural gas per day.<br />
Net oil and gas wells or net acres are determined by<br />
multiplying gross wells or acres by our working interest in<br />
those wells or acres.<br />
A-1