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Mineral rights represent the legal rights to explore for and produce oil and gas below the surface.

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A formal agreement between two or more parties where the owner of the minerals grants another party the right to drill and produce oil and gas in exchange for up front bonus payment, payment for surface damages (if applicable), and a royalty based upon oil and gas sales activity.

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The basic lease agreement involves an initial bonus payment for signing the lease, royalty percentages to be paid if oil or natural gas are found and extracted from the property and a time frame within which the operator must begin operations. If oil or natural gas production does occur, the lease is in effect for the life of the well, which could be 20 years or more. If the exploration and production company does not commence production before the lease expires then all rights return to the mineral owner.

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When minerals are produced from a leased property the owner is usually paid a share of the production income. This payment is known as a "royalty payment". The amount of the royalty payment is specified in the lease agreement.

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A working interest is a percentage of ownership in an oil and gas lease granting its owner the right to participate in exploration, drilling and production of oil and gas from a property. Working interest owners are obligated to pay a corresponding percentage of the cost of leasing, drilling, producing and operating a well or unit. After royalties are paid, the working interest also entitles its owner to share in production revenues with other working interest owners, based on the percentage of working interest owned.

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Quantity of oil and natural gas expected to be recovered from existing wells with the existing equipment and under the existing operating conditions.

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Two-dimensional and three-dimensional seismic data can be utilized to improve success rates for geologically defined exploration and development prospects. In addition, seismic data can be used to more efficiently develop oil and gas resources. The collection of seismic data involves creating sound waves which in some areas penetrate more than 15,000 feet below the surface of the earth. The sound waves bounce back or reflect to the surface where the signal is picked up by geophones. The data received by the geophones is recorded and processed. The processed data is then interpreted by a geophysicist, who in coordination with geologists and engineers work to identify potential drilling locations which provide the most economic opportunity to produce oil and gas.

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3D seismic refers to the technique of acquiring seismic data in a grid pattern versus the straight line acquisition of 2D data. 3D seismic imaging of the subsurface provides geoscientists a more complete picture, allowing for more accurate analysis and interpretations. 3D seismic data provides detailed information about fault distribution and subsurface structures. This technology can increase the probability of a successful and economic oil and gas well.