Lexicon of Terms

Learn how to talk like an Oilman
417 Oil & Gas and related investment terms defined.
Net Revenue Interest (NRI) — The percentage of revenues due an interest holder in a property, net of royalties or other burdens on the property. A landowner leases his mineral rights to an oilman. The landowner retains a royalty of 1/8 (=12.5%); his net revenue interest is 12.5%. The oilman's net revenue interest would be 87.5% (=100% - 12.5%).

Natural gas — A mixture of hydrocarbon compounds and small amounts of various nonhydrocarbons (such as carbon dioxide, helium, hydrogen sulfide, and nitrogen) existing in the gaseous phase or in solution with crude oil in natural underground reservoirs.

NGL (natural gas liquids) — Portions of natural gas that are liquefied at the surface in lease separators, field facilities, or gas processing plants, leaving dry natural gas. They include, but are not limited to, ethane, propane, butane, natural gasoline, and condensate.

Naval petroleum reserves — Areas containing proven oil reserves that were set aside for national defense purposes by Congress in 1923 (located in Elk Hills and Buena Vista, California; Teapot Dome, Wyoming; and on the North Slope in Alaska).

Net profits interest — A share of gross production from a property that is carved out of a working interest, and is figured as a function of net profits from operation of the property.


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