Contract Area Unsuccessful Exploration and Appraisal Costs. Contract Area Unsuccessful Exploration and Appraisal Costs mean those Operating Costs incurred anywhere in the Contract Area in connection with the drilling of any Exploration Well or Appraisal Well in the Contract Area which does not result in a Commercial Discovery. Contract Area Unsuccessful Exploration and Appraisal Costs are subject to depreciation over a five (5) year period in equal installments of twenty percent (20%) per annum or the remaining life of the Contract Area whichever is less, commencing with production. Unsuccessful Exploration and Appraisal Costs in any period shall be allocated to the Operating Costs of the Contract Area, subject to the following restrictions:
Contract Area Unsuccessful Exploration and Appraisal Costs. Operating Costs shall be recorded separately for each Development Area and calculated on the basis of a Contract Area.
Contract Area Unsuccessful Exploration and Appraisal Costs. Operating Costs shall be recorded separately for each Development Area and calculated on the basis of the Contract Area. 49 2.2 Contract Area Non-capital Costs Contract Area Non-capital Costs means those Operating Costs incurred that are chargeable to the current year’s operations. Contract Area Non-capital Costs include the following:
