A method for exploring for hydrocarbons, including: simulating a seismic waveform, using a computer, wherein computations are performed on a computational grid representing a subsurface region, said computational grid using perfectly matched layer (PML) boundary conditions that use an energy dissipation operator to minimize non-physical wave reflections at grid boundaries; wherein, in the simulation, the PML boundary conditions are defined to reduce computational instabilities at a boundary by steps including, representing direction of energy propagation by a Poynting vector, and dissipating energy, with the dissipation operator, in a direction of energy propagation instead of in a phase velocity direction; and using the simulated waveform in performing full waveform inversion or reverse time migration of seismic data, and using a physical property model from the inversion or a subsurface image from the migration to explore for hydrocarbons.