Oil and Gas Glossary: F Terms
14 oil and gas terms start with the letter F. Each one is defined below, in alphabetical order.
Farm-In
An arrangement whereby an Operator buys in or acquires an interest in a lease owned by another Operator on which oil or gas has been discovered or is being produced. Often farm-ins are negotiated to help the original owner with development costs and to secure for the buyer a source of crude oil or natural gas.
Farmout
Assignment or partial assignment of an oil and gas lease from one lessee to another lessee. Also referred to as a farm-out or farm out.
Field Rules
Spacing and production rules mandated by the state for a common reservoir in an area.
Field Run Ticket
A paper record completed by the purchasers or transporters representative documenting how much crude oil was removed from an oil well location.
Field-Wide Unit
The combining of all wells and ownership interests within an entire field for the purpose of maximizing the overall benefit to all parties. The practice of field wide unitization is used more often in offshore fields and onshore in fields that require enhanced recovery.
First Purchaser
The party who first purchases and takes title to the production from an oil or gas well.
First Right of Refusal
A provision in leases stating that the operator has the right to top lease before any third party does. (This in effect is an option – the option to review and preempt a transaction by another party).
Flush Production
The phrase used to describe the initial “rush” of production that usually comes from a producing well after it is first completed and put on line. This flow rate is usually much higher than the rate which will be sustained. Operators also use the term Peak Flow Rate to describe Flush Production.
Forced Pooling or Force Pooled
The act of being forced by state law into participation in an oil and/or gas producing unit. Often referred to as Force Pooled.
Formation
Geological term that refers to a separate layer of rock or group of intermingled beds.
Fracking, Hydraulic Fracturing, Fracture, Fracing, Frac Job
The process of using high pressure to pump sand laden gelled fluid into subsurface rock formations in order to improve flow into a well bore.
Free Water Knockout
A vessel used near a well location to separate produced brine from crude oil. These are used generally when there are high volumes of produced water. Also referred to as an oil-water separator.
Fresh Water
With respect to oil and gas production, fresh water which is found at shallower depths, is differentiated from salt water or brine which is usually found along with hydrocarbons. Fresh water or water of certain purities is needed for hydraulic fracturing.
Fuel and Shrinkage
The difference between the amounts of gas produced at the wellhead and the gas that enters a pipeline for sale. The losses include those from the separation process, field use, as well as fuel, flare gas and plant liquids extraction.