Common use of AFE Overruns and Substitute Well Clause in Contracts

AFE Overruns and Substitute Well. Once an Exploratory Well is commenced, the Operator shall drill the well with due diligence to its Objective Depth, subject to: (a) all supplemental AFEs required under Article 6.2.2 (Supplemental AFEs ), (b) the Operator encountering mechanical difficulties, uncontrolled influx of subsurface water, loss of well control, abnormal well or formation pressures, pressured or heaving shale, granite or other practicably impenetrable substances, or other similar conditions in the well bore or damage to the well bore that, in the Operator’s sole opinion, render further well operations impractical, and (c) the unanimous agreement of the Participating Parties to cease drilling an Exploratory Well before reaching Objective Depth.

AFE Overruns and Substitute Well. Once an Exploratory Appraisal Well is commenced, the Operator shall drill the well with due diligence to its Objective Depth, subject to: (a) all supplemental AFEs required under Article 6.2.2 (Supplemental AFEs AFEs),; (b) the Operator encountering mechanical difficulties, uncontrolled influx of subsurface water, loss of well control, abnormal well or formation pressures, pressured or heaving shale, granite or other practicably impenetrable substances, or other similar conditions in the well bore or damage to the well bore that, in the Operator’s sole opinion, render further well operations impractical, ; and (c) the unanimous agreement of the Participating Parties to cease drilling an Exploratory Appraisal Well before reaching Objective Depth.