Husky Energy
 
Glossary

Commonly Used Terms

Bitumen A naturally occurring viscous mixture consisting mainly of pentanes and heavier hydrocarbons. It is more viscous than 10 degrees API
Carbonate Sedimentary rock primarily composed of calcium carbonate (limestone) or calcium magnesium carbonate (dolomite) which forms many petroleum reservoirs
Capital Employed Short and long-term debt and shareholders’ equity
 
Capital Expenditures Include capitalized administrative expenses and capitalized interest but do not include proceeds or other assets
 
Capital Program Capital expenditures not including capitalized administrative expenses or capitalized interest
Cash Flow from Operations Earnings from operations plus operations non-cash charges before settlement of asset retirement obligations and change in non-cash working capital
 
CDOR Certificate of Deposit Offered Rate
 
Coalbed Methane Methane (CH4), the principal component of natural gas, is absorbed in the pores of coal seams
Cogeneration The production of electricity and thermal energy from a common fuel source. Heat left over from industrial processes can be used to power an electric generator and conversely, surplus heat from an electric generator can be used for industrial or heating purposes
 
Decommissioning The ending of operations and the withdrawal of a facility from service, followed by its transformation into an out-of-service state and eventually, its complete removal.
 
Differentials Discounts paid for Canadian heavy oil against benchmark West Texas Intermediate crude oil
 
Equity    Shares, retained earnings and amounts due to shareholders prior to August 25, 2000
 
Feedstock Raw materials which are processed into petroleum products
 
FPSO Floating production, storage and offloading vessel
 
LIBOR London Interbank Offered Rate
 
Natural gas to oil conversion Natural gas is converted on the basis that six mcf of natural gas equals one barrel of oil
 
Net Debt Total debt net of cash and cash equivalents
 
NGL Natural gas liquids
 
NIT NOVA Inventory Transfer. NOVA Inventory Transfer is an exchange or transfer of title of gas that has been received into the NOVA pipeline system but not delivered to a connecting pipeline.
 
NYMEX New York Mercantile Exchange
 
OPEC Organization of Petroleum Exporting Countries
 
“Probable” reserves Those additional reserves that are less certain to be recovered than proved reserves. It is equally likely that the actual remaining quantities recovered will be greater or less than the sum of the estimated proved and probable reserves.
 
“Proved Developed” reserves Those reserves that can be expected to be recovered through existing wells with existing equipment and operating methods. Additional oil and gas expected to be obtained through the application of fluid injection or other improved recovery techniques for supplementing the natural forces and mechanisms of primary recovery are included as proved developed reserves only after testing by a pilot project or after the operation of an installed program has confirmed through production response that increased recovery will be achieved.
 
“Proved Undeveloped” reserves Those reserves that are expected to be recovered from new wells on undrilled acreage, or from existing wells for which a relatively major expenditure is required for recompletion. Inclusion of reserves on undrilled acreage is limited to those drilling units offsetting productive units that are reasonably certain of production when drilled. Proved reserves for other undrilled units are included only if it can be demonstrated with certainty that there is continuity of production from the existing productive formation. Estimates for proved undeveloped reserves are not attributed to any acreage for which an application of fluid injection or other improved recovery technique is contemplated, unless such techniques have been proved effective by actual tests in the area and in the same reservoir.
 
“Proved” reserves Reservers estimated in accordance with the U.S. Securities and Exchange Commission (SEC) definition set out in Rule 4-10(a) of Regulation S-X under the Securities Exchange Act of 1934 as follows: Proved oil and gas reserves are the 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. Prices include consideration of changes in existing prices provided only by contractual arrangements, but not on escalations based upon future conditions.
 
Restoration The physical reclamation process involving recontouring, replacing topsoil, and re-vegetating to restore the surface of the land to its equivalent land capability
 
Remediation The decontamination of soil and or water to provide protection to human and environmental health
 
SAGD Steam assisted gravity drainage technology used in extracting bitumen from the oil sands
 
SEDAR System for Electronic Document Analysis and Retrieval
 
Total Debt Long-term debt including current portion and bank operating loans
WCSB Western Canada Sedimentary Basin
 
Wildcat well Exploratory well drilled in an area where no production exists
 
WTI West Texas Intermediate


Units of Measurement

bbls barrels
bcf billion cubic feet
boe barrels of oil equivalent 
bps basis points
GJ gigajoule
hectare land area: 1 hectare is equal to 2.47 acres
mbbls thousand barrels
mbbls/day thousand barrels per day                         
mboe  thousand barrels of oil equivalent
mboe/day thousand barrels of oil equivalent per day
mcf thousand cubic feet
mcfge thousand cubic feet of gas equivalent
mmbbls million barrels
mmboe million barrels of oil equivalent
mmbtu million British Thermal Units
mmcf  million cubic feet
mmcf/day million cubic feet per day
mmlt million long tons
MW megawatt
MWh  megawatt-hour
tcf trillion cubic feet