Common use of AFEs Clause in Contracts

AFEs. Section 5.25 of the Disclosure Schedules sets forth, as of the date of this Agreement, all authorities for expenditures or other capital commitments (the “AFEs”) in excess of $250,000 (net to Target’s and Nominee’s collective interest) that are outstanding relating to the Properties, including AFEs to drill or rework any well; provided, nothing contained in this Section or elsewhere in this Agreement shall reduce, diminish or affect Buyer’s obligation to, after the Closing, make payment for its proportionate share of any AFEs relating to the period at and after the Effective Time which are approved by Target after the Execution Date in the Ordinary Course of Business and regardless of the form of such AFE.

AFEs. Section 5.25 of the Disclosure Schedules sets forth, as of the date of this Agreement, all authorities for expenditures or other capital commitments (the “AFEs”) in excess of $250,000 (net to Target’s and Nominee’s collective interest) that are outstanding relating to the Properties, including AFEs to drill or rework any well; provided, nothing contained in this Section or elsewhere in this Agreement shall reduce, diminish or affect Buyer’s obligation to, after the Closing, make payment for its proportionate share of any AFEs relating to the period at and after the Effective Time which are approved by Target after the Execution Date in the Ordinary Course of Business and regardless of the form of such AFE.