| TERM | DEFINITION |
| AECO |
Benchmark natural gas price determined at the AECO 'C' hub in southeast Alberta. |
| Bbl |
Barrel, the principal unit to measure crude oil and natural gas liquids; bbls signifies barrels. |
| boe(s) |
Barrel(s) of oil equivalent; the conversion rate used is the approximate energy equivalency, whereby 6 thousand cubic feet (mcf) of natural gas is deemed equivalent to 1 bbl of crude oil. |
| Bcf |
Billion cubic feet (natural gas). |
| Convertible Debentures |
A long-term unsecured, interest-bearing corporate bond that can be exchanged for common shares. |
| Corporate Conversion |
After 2010 there will no longer be any tax advantage for a public company to remain an income trust. As such, most trusts are converting to corporations. Daylight converted to a corporation on May 7, 2010. |
| Dividend |
A dividend is a portion of the cash flow of a company that is distributed to shareholders. |
| Dividend Payment Date |
A dividend payment date is the date on which the corporation sends cash dividends to shareholders, either directly or to the brokerage or investment companies that manage the beneficial shareholders' account(s). This usually occurs on the 15th day of each month. If that falls on a Saturday, Sunday or statutory holiday, the dividend payment date is advanced to the next business day. |
| Dividend Record Date |
The date that an investor must be on record as being a holder of the share in order to be eligible to receive the dividend for that period. Typically the last day of each month.
|
| Ex-Dividend Date |
Holders of shares purchased prior to the Ex-Dividend Date are entitled to the declared dividend paid the next month; Ex-Dividend date is two business days prior to the Dividend Record Date. |
| Formations/Zones |
Formations are the geological layers of the earth that contain or encase natural resources such as oil or natural gas. Wells are drilled into formations that are known or believed to contain oil or natural gas in order to produce that resource. |
| Hedging |
Hedging is the use of financial contracts or derivatives to mitigate exposure to an underlying risk. For example, as a producer of oil and gas, Daylight can hedge its production by entering into a financial agreement, which provides the company with minimum price assurance on a fixed amount of produced volumes over a fixed time frame. |
| Horizontal Drilling |
Is a method of drilling an oil or gas well with the productive portion of the well going horizontally through the reservoir rather than vertically, allowing for more surface area of the formation to drain into a single wellbore. |
| Hydraulic Fracturing (Fracing) |
A process in which fluids and proppant (typically sand) are pumped into reservoirs at high pressures to cause the formation to fracture, allowing oil or gas to flow into the wellbore at increased rates. |
| Market Capitalization |
Calculated by multiplying the outstanding shares by the day's closing market price as per the TSX. |
| M |
In production-related units, used to denote "thousands", whereas "MM" denotes millions. |
| Mboe |
Thousands of barrels of oil equivalent |
| Mcf |
Thousand cubic feet, the principal unit of natural gas measurement |
| MMboe |
Millions of barrels of oil equivalent |
| MMcf |
Million cubic feet |
| Natural Gas Liquids (NGLs) |
Higher-density hydrocarbons commingled with natural gas in certain reservoirs, usually separated at the wellhead or during processing, which are then marketed as separate commodities; NGLs include ethane, propane, butane and condensate or pentanes plus. |
| Net Production |
The working interest share of gross production. |
| Operating Costs |
Expenses incurred to recover and perform primary processing on oil, natural gas and NGLs and bring to a marketable state, exclusive of capital expenditures. |
| Operating Netback |
Net revenues after deduction of operating costs, transportation and royalty payments, usually expressed as $/boe. |
| /d |
Added to units to signify "per day". |
| Payout Ratio |
The percentage of generated funds from operations distributed to shareholders as a dividend. |
| Reserve Life Index (RLI) |
A calculation in years of the longevity of an asset, determined by dividing the reserves by production or forecast production for a certain period. |
| Resource Play |
A resource play typically refers to an accumulation of hydrocarbons known to exist over a large areal extent and/or thick vertical section, which when compared to a conventional play, typically has a lower geological and/or commercial development risk. |
| Royalty |
The portion of production or revenue remunerated to the owner of the mineral rights as compensation for leasing those mineral rights. Royalties can be provincial Crown, federal Crown, freehold (the surface rights holder also may hold mineral rights) or over-riding (where an interest owner cedes rights in favour of a share of production revenue). |
| TSX |
Toronto Stock Exchange |
| Working Interest |
The ownership interest held in a property that indicates the owners' share of obligations, such as costs associated with the property, as well as the owners' share of the benefits, such as production revenue, after deduction of royalties. |
| W.T.I. |
West Texas Intermediate benchmark crude oil priced at Cushing, Oklahoma. |
