re: oil Hydrocarbons encountered whilst drilling are analysed thro' gas detector & chromatograph wherein they r broken down further to C1(methane) to C5 (Pentane).
1 unit = 200 ppm of gas, so if they are gettng 48units that means 9600 ppm of gas. This % of c1-c5 is an indication of either gas or oil in the well. The rock chips are exmined under microscope & fluoroscope (UV light box). If they cuttings glow under the fluoroscope then it means oil is present.
After all this, they stop drilling & do a test to confirm how much gas/oil/water is there in that section of formation & report this as xx bbls of oil or xx mcfd of gas recovered.
Kept it simple, hope this helps.
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