Common use of Additional Opportunities Prospect Well Cost Sharing Clause in Contracts

Additional Opportunities Prospect Well Cost Sharing. Rights to earn any interest on and in the Exhibit "B" Additional Opportunities Prospects will not vest in Company, until it has earned an interest in the Primary Prospect (Mussel Beach). Subject to the provisions of Article 3.3, should either Party propose the drilling of an Initial Test Well on an Exhibit "B" Prospect, it will provide the other Party with an AFE detailing the specifications of the well to be drilled. Either Party will have the option, but not the obligation, to elect to participate in the drilling of an Initial Test Well on any such Prospect listed on Exhibit "B" for thirty (30) days from the receipt of the formal AFE. Should each of the Parties timely elect to drill an Initial Test Well on any Prospect listed on Exhibit "B", Company and Chevron will each have and bear the obligation of paying its share of the Well Cost as set out in Exhibit "A", on the same terms and conditions as for the Primary Prospect, and, except for Holly Beach and Skipper's Canyon Prospects, subject to the level of xxxxxest participation actually elected and assumed by Company in such Additional Opportunities Prospect. Company's level of interest participation elected and assumed by Company for a particular Additional Opportunities Prospect Initial Test Well must conform to the conditions that (i) Company's ACP Interest may not exceed an undivided twenty-five percent (25%) in that well, and (ii) Company's BCP Interest in that well shall be one hundred sixty-eight percent (168%) of Company's ACP Interest in that well, unless mutually agreed otherwise by the Parties. Notwithstanding anything to the contrary, it is stipulated and agreed to by Chevron and Company that Chevron shall not propose an Initial Test Well for Skipper's Canyon Prospect for Company's consideration prior to reaching total depth drilled in the Initial Test Well including any subsequent operations such as sidetracking or deepening of said well and the results of all logging and testing operations being furnished to the Parties.

Additional Opportunities Prospect Well Cost Sharing. Rights The Parties will attempt to earn any interest agree on and in a timetable for the Exhibit "B" drilling of one or more Initial Test Wells on the Additional Opportunities Prospects will once the Parties agrxx xx Additional Opportunities Prospect is ready to be drilled. Notwithstanding an attempt to agree on a timetable to drill the Initial Test Wells, it is the intention of the Parties not vest in Companyto defer drilling Addixxxxxl Opportunities Prospects that are ready to be drilled and to test all Additional Opportunities Prospects during the term of this Agreement. Therefore the Parties agree that after. April 1, until it has earned an interest in 2006, either Party shall have the Primary Prospect (Mussel Beach). Subject option to propose to the provisions other Party the drilling of Article 3.3an Initial Test Well on for any Prospects listed on Exhibit "B." Between the Effective Date and April 1, 2006, the Parties agree not to submit a proposal to the other regarding the drilling of an Initial Test Well on any Prospect listed on Exhibit "B." After April 1, 2006, should either a Party wish to propose the drilling of an Initial Test Well on an Exhibit "B" Prospect, it will the proposing Party shall provide the other Party with an AFE detailing the specifications of the well to be drilled. Either Party The Parties will have the option, but not the obligation, to elect to participate in the drilling of an Initial Test Well on any such Prospect listed on Exhibit "BB." for thirty (30) days from the receipt of the formal AFE. Should each of the Parties timely elect to drill an Initial Test Well on any Prospect listed on Exhibit "B", Company and Chevron ," Ridgewood will each have and bear the obligation of paying its share of the Well Cost cost as set out in Exhibit "A"B" or it's proportionately reduced share as applicable. The Parties shall have the option to participate in the drilling of a Substitute Well(s). Should Ridgewood elect to participate in a Substitute Well, on upon earning an interest assignment as described in Article 3.1 herein, the same terms provisions of the applicable Operating Agreement shall control the rights, obligations and conditions options of the Parties thereafter for that particular Prospect. Should Ridgewood elect not to participate in the drilling of a Substitute Well before earning all leasehold rights in a Prospect as for provided herein, Ridgewood's rights to an interest in that Prospect or the Primary Prospectremaining Prospect area shall terminate if such well is drilled as proposed. In addition, andshould Ridgewood fail to participate in a Substitute Well before earning all the interest in a Prospect as described herein, except for Holly Beach and Skipper's Canyon Prospects, subject the non-consent provisions of the applicable Operating Agreement shall not apply to the level of xxxxxest participation actually elected and assumed by Company non jointly owned interest in such Additional Opportunities Prospect. Company's level Substitute Well and Ridgewood will have no right to use of interest participation elected and assumed by Company for a particular Additional Opportunities Prospect Initial Test the Substitute Well must conform as to the conditions that (i) Company's ACP Interest may not exceed an undivided twenty-five percent (25%) in that wellunearned, and (ii) Company's BCP Interest in that well shall be one hundred sixty-eight percent (168%) of Company's ACP Interest in that well, non jointly owned interest unless mutually agreed otherwise upon by the Parties. Should Chevron elect to participate in a Substitute Well, Chevron will pay a share of the Well Cost of the Substitute Well based on the residual portion of the Well Cost not being paid by Ridgewood or a Co-Working Interest Owner. Should Chevron elect not to participate in the drilling of a Substitute Well for the Initial Test Well, it will farmout as applicable, a portion of its interest to Ridgewood, as specified in Article 5, as to all depths not previously earned by Ridgewood pursuant to the drilling of the Initial Test Well, or elect not to participate under the provisions of the applicable Operating Agreement. Failure by Chevron to timely make an election pursuant to the response periods provided in the applicable Operating Agreement shall be deemed an election by Chevron not to participate in such operation and the non-consent provisions of such Operating Agreement shall apply. As to any depths previously earned by Ridgewood, a Party's election not to participate in such Substitute Well shall be in accordance with the provisions of the applicable Operating Agreement. The provisions of Article 5 shall apply to any farmout. Notwithstanding anything herein to the contrary, it is stipulated on any Substitute Well being proposed on a Prospect where the Initial Test Well discovered a Reservoir, a Party will have the right and agreed option to by Chevron and Company that Chevron shall limit its participation in the drilling of any Substitute Well to those depths previously drilled in the original Initial Test Well. Should Ridgewood elect not propose to participate in the drilling of an Initial Test Well for Skipper's Canyon drilled on a Prospect for Company's consideration prior listed on Exhibit "B" the Leases associated with that Prospect will be excluded from this Agreement and Ridgewood will no longer have any rights or options associated with earning an interest in those Leases. Should Chevron elect not to reaching total depth drilled participate in the drilling of an Initial Test Well on the Prospect listed on Exhibit "B" that is proposed to be drilled to the Casing Point for the Objective Depth, Chevron will farmout, as applicable, a portion of its interest to Ridgewood, as specified in Article 5, its available acreage in the specific Prospect area. Should Chevron elect not to participate in the drilling of an Initial Test Well on an Exhibit "B" Prospect, the earning provisions for Ridgewood as described in Article 3 and this Section 4.2, including any subsequent operations such as sidetracking or deepening of said well but not limited to the Land Cost reimbursement, shall not apply and the results of all logging and testing operations being furnished to earning provisions under the Partiesfarmout shall control.

Additional Opportunities Prospect Well Cost Sharing. Rights The Parties will attempt to earn any interest agree on and in a timetable for the Exhibit "B" drilling of one or more Initial Test Wells on the Additional Opportunities Prospects will once the Parties agrxx xx Additional Opportunities Prospect is ready to be drilled. Notwithstanding an attempt to agree on a timetable to drill the Initial Test Wells, it is the intention of the Parties not vest in Companyto defer drilling Addixxxxxl Opportunities Prospects that are ready to be drilled and to test all Additional Opportunities Prospects during the term of this Agreement. Therefore the Parties agree that after April 1, until it has earned an interest in 2006, either Party shall have the Primary Prospect (Mussel Beach). Subject option to propose to the provisions other Party the drilling of Article 3.3an Initial Test Well on for any Prospects listed on Exhibit "B." Between the Effective Date and April 1, 2006, the Parties agree not to submit a proposal to the other regarding the drilling of an Initial Test Well on any Prospect listed on Exhibit "B." After April 1, 2006, should either a Party wish to propose the drilling of an Initial Test Well on an Exhibit "B" Prospect, it will the proposing Party shall provide the other Party with an AFE detailing the specifications of the well to be drilled. Either Party The Parties will have the option, but not the obligation, to elect to participate in the drilling of an Initial Test Well on any such Prospect listed on Exhibit "BB." for thirty (30) days from the receipt of the formal AFE. Should each of the Parties timely elect to drill an Initial Test Well on any Prospect listed on Exhibit "B", Company and Chevron ," Ridgewood will each have and bear the obligation of paying its share of the Well Cost cost as set out in Exhibit "A"B" or it's proportionately reduced share as applicable. The Parties shall have the option to participate in the drilling of a Substitute Well(s). Should Ridgewood elect to participate in a Substitute Well, on upon earning an interest assignment as described in Article 3.1 herein, the same terms provisions of the applicable Operating Agreement shall control the rights, obligations and conditions options of the Parties thereafter for that particular Prospect. Should Ridgewood elect not to participate in the drilling of a Substitute Well before earning all leasehold rights in a Prospect as for provided herein, Ridgewood's rights to an interest in that Prospect or the Primary Prospectremaining Prospect area shall terminate if such well is drilled as proposed. In addition, andshould Ridgewood fail to participate in a Substitute Well before earning all the interest in a Prospect as described herein, except for Holly Beach and Skipper's Canyon Prospects, subject the non-consent provisions of the applicable Operating Agreement shall not apply to the level of xxxxxest participation actually elected and assumed by Company non jointly owned interest in such Additional Opportunities Prospect. Company's level Substitute Well and Ridgewood will have no right to use of interest participation elected and assumed by Company for a particular Additional Opportunities Prospect Initial Test the Substitute Well must conform as to the conditions that (i) Company's ACP Interest may not exceed an undivided twenty-five percent (25%) in that wellunearned, and (ii) Company's BCP Interest in that well shall be one hundred sixty-eight percent (168%) of Company's ACP Interest in that well, non jointly owned interest unless mutually agreed otherwise upon by the Parties. Should Chevron elect to participate in a Substitute Well, Chevron will pay a share of the Well Cost of the Substitute Well based on the residual portion of the Well Cost not being paid by Ridgewood or a Co-Working Interest Owner. Should Chevron elect not to participate in the drilling of a Substitute Well for the Initial Test Well, it will farmout as applicable, a portion of its interest to Ridgewood, as specified in Article 5, as to all depths not previously earned by Ridgewood pursuant to the drilling of the Initial Test Well, or elect not to participate under the provisions of the applicable Operating Agreement. Failure by Chevron to timely make an election pursuant to the response periods provided in the applicable Operating Agreement shall be deemed an election by Chevron not to participate in such operation and the non-consent provisions of such Operating Agreement shall apply. As to any depths previously earned by Ridgewood, a Party's election not to participate in such Substitute Well shall be in accordance with the provisions of the applicable Operating Agreement. The provisions of Article 5 shall apply to any farmout. Notwithstanding anything herein to the contrary, it is stipulated on any Substitute Well being proposed on a Prospect where the Initial Test Well discovered a Reservoir, a Party will have the right and agreed option to by Chevron and Company that Chevron shall limit its participation in the drilling of any Substitute Well to those depths previously drilled in the original Initial Test Well. Should Ridgewood elect not propose to participate in the drilling of an Initial Test Well for Skipper's Canyon drilled on a Prospect for Company's consideration prior listed on Exhibit "B" the Leases associated with that Prospect will be excluded from this Agreement and Ridgewood will no longer have any rights or options associated with earning an interest in those Leases. Should Chevron elect not to reaching total depth drilled participate in the drilling of an Initial Test Well on the Prospect listed on Exhibit "B" that is proposed to be drilled to the Casing Point for the Objective Depth, Chevron will farmout, as applicable, a portion of its interest to Ridgewood, as specified in Article 5, its available acreage in the specific Prospect area. Should Chevron elect not to participate in the drilling of an Initial Test Well on an Exhibit "B" Prospect, the earning provisions for Ridgewood as described in Article 3 and this Section 4.2, including any subsequent operations such as sidetracking or deepening of said well but not limited to the Land Cost reimbursement, shall not apply and the results of all logging and testing operations being furnished to earning provisions under the Partiesfarmout shall control.