How to Use This Glossary

The terms below are grouped into themes: economics, ownership, technical, operations, ESG/compliance, and market/pricing. Definitions are intentionally concise and written for a financially sophisticated audience that may not be deeply embedded in day-to-day oil and gas operations.

This glossary is informational only and does not replace legal, tax, accounting, engineering, or regulatory advice. Formal definitions in executed contracts will always control.

Economics & Returns

Bcf (Billion Cubic Feet)
A unit of volume equal to one billion cubic feet of natural gas. Used to describe total gas in place, recoverable reserves, and long-term production forecasts.
Mcf (Thousand Cubic Feet)
A unit of volume equal to one thousand cubic feet of natural gas. Most revenue and pricing metrics are quoted on a per-Mcf basis.
Working Interest (WI)
The percentage ownership in the revenues and costs of a well or project. In this program, up to 70% WI is offered to investors, who receive a pro-rata share of cash flows and bear the corresponding share of costs.
Net Revenue Interest (NRI)
The share of production revenues remaining after royalties and other burdens, expressed as a percentage. NRI is the key driver of net cash flow to WI holders.
Capex (Capital Expenditures)
Upfront and one-time costs required to reactivate, complete, or enhance wells and facilities. In this program, Capex includes reactivation budgets for Mobil Fee 6 and Mobil Fee 4 plus contingency.
Opex (Operating Expenditures)
Recurring costs associated with producing gas, such as field operations, compression, chemicals, and routine maintenance. Opex materially impacts margin and payback.
Gross Revenue
Total revenue from gas sales before operating costs, interest, or taxes. Calculated as produced volumes multiplied by realized gas price, net of certain marketing and transportation charges as applicable.
Gross Profit
Gross revenue minus direct operating costs. In this program, gross profit is a key indicator of the value generated before corporate overhead and taxes.
Payback Period
The time required for cumulative cash distributions to equal the original capital invested. The project is designed with an accelerated capital recovery profile targeting early payback.
Sensitivity Analysis
Analysis of how project economics respond to changes in key variables such as gas price, production rates, operating costs, and timing. Results are typically presented in the economic model and Data Room.

Ownership, Structure & Terms

Lease
A legal agreement granting the right to explore for and produce hydrocarbons from a defined acreage. This program is based on a 643-acre lease with access to multiple reservoirs.
Joint Operating Agreement (JOA)
The contract that governs the relationship among Working Interest owners, defining the operator’s responsibilities, decision-making processes, and cost/revenue allocations.
Operator
The party responsible for day-to-day management of field operations, vendor oversight, regulatory compliance, and reporting. Safari Production Company, Inc. is the operator in this program.
Non-Operated WI Owner
A Working Interest owner that is not the operator. Non-operated WI owners participate financially but do not manage daily field operations.
Cash Flow Waterfall
The agreed priority sequence in which project cash flows are distributed, typically addressing cost recovery, return of capital, and ongoing profit splits between investors and the operator.
Contingency
A budget reserve allocated for unplanned or uncertain costs. In this program, contingency provides a risk buffer for operational variance and scope refinement.

Technical & Geology

Reservoir
A subsurface rock formation that can store and transmit hydrocarbons. This program targets multiple gas reservoirs within the South Texas lease.
Conventional Gas
Natural gas produced from reservoirs where the hydrocarbons migrate and are trapped in relatively porous and permeable formations without the need for extensive stimulation typical of unconventional plays.
Well Log
A record of measurements taken in the wellbore, used by geologists and engineers to evaluate rock and fluid properties, identify pay zones, and design completions.
Completion
The process of preparing a well for production, including perforating, setting tubing, installing equipment, and connecting to facilities. Completion design directly influences production performance and costs.
Workover
A major intervention in an existing well to repair, recomplete, or enhance production. The reactivation program for Mobil Fee 6 and 4 is centered on workover scopes defined in the technical plan.
Production Profile
A forecast of expected production volumes over time. Profiles are used to model revenues, decline rates, and key economic metrics such as payback and long-term cash generation.

Operations, Midstream & Facilities

Field Operations
Day-to-day activities required to safely produce, measure, and transport gas, including well monitoring, maintenance, and troubleshooting.
Facilities
Surface equipment and infrastructure needed to process, treat, and deliver gas into the midstream system, such as separators, dehydration units, and meters.
Midstream
The infrastructure and companies responsible for gathering, processing, transporting, and sometimes marketing natural gas from the field to end markets or downstream buyers.
Tie-In
The process of connecting a well or group of wells to existing facilities or pipelines, enabling produced gas to enter the midstream system and be delivered to market.

ESG, Regulatory & Compliance

ESG (Environmental, Social & Governance)
A framework for evaluating how a project manages environmental impact, social responsibility, and governance practices. The program’s ESG approach is summarized on the ESG & Stewardship page and supported by documentation in the Data Room.
Regulatory Compliance
Adherence to applicable laws, regulations, and permits governing drilling, production, environmental protection, and reporting. Compliance is a core responsibility of the operator.
Abandonment & Reclamation
The process and associated obligations for properly plugging wells and restoring the site at the end of economic life or when required by regulation. Abandonment obligations are factored into long-term planning and ESG considerations.
Health, Safety & Environment (HSE)
The policies, procedures, and practices designed to protect personnel, the community, and the environment during all phases of field activity.

Market & Pricing

Price Deck
A set of assumed commodity prices over time used in the economic model. Sensitivity cases typically test higher and lower price decks to assess robustness of returns.
Basis Differential
The difference between a local gas price and a benchmark price (such as Henry Hub). Basis reflects regional supply-demand dynamics and infrastructure.
Realized Price
The actual net price received per Mcf after accounting for basis, transportation, marketing fees, and other adjustments applicable to sales contracts.
Hedging (Conceptual)
The use of financial or physical instruments to reduce exposure to commodity price volatility. Any actual hedging strategy would be reflected in the economic model and governed by project agreements.

Next Steps

If you would like to see how these terms are applied in practice, Safari Production Company, Inc. can provide the full investment memorandum, economic model, and Data Room access for qualified investors and technical advisors.

Use the calls-to-action below to request the investor packet or initiate the Data Room access process.

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