Drilling and Completion Clause Samples

Drilling and Completion. All ▇▇▇▇▇ shall be Drilled and Completed in accordance with the terms of the Operating Agreement. Prior to spudding each Well subject to this Agreement, Nytis shall deliver an AFE, in the form as set forth on Exhibit D attached hereto (each a “Well AFE”), setting forth the estimate of Drilling and Completion Costs for such Well. It is understood and agreed that the Well AFEs represent an estimate of the costs of drilling and completing the ▇▇▇▇▇, but final billing will be based on actual costs incurred. ▇▇▇▇▇▇▇▇ will be charged pursuant to the Operating Agreement unless otherwise set forth herein. In connection with any Well AFE, Nytis agrees promptly to provide any additional information regarding the Well which is reasonably requested by Liberty. The location of each Well shall be determined by the Operator in its sole discretion. Unless (a) otherwise consented to in writing by Liberty, or (b) pursuant to Section 2.5(a), Nytis shall drill each Well as a Horizontal Well running through the Berea Sandstone Geologic Interval. Nytis shall drill, complete, equip and produce, or plug and abandon each of the ▇▇▇▇▇, with due diligence and reasonable dispatch in accordance with applicable laws and the Operating Agreement.

Drilling and Completion. The Manager agrees to enforce, on behalf of the Company, the obligation of the Operators to conduct drilling and completion operations on each Net Well with due diligence and in a good and workmanlike manner, and further agrees to provide and pay for all tangible and intangible drilling and completion costs which are convenient or necessary in the judgment of the respective Operator to drill and complete the Net Well(s) and which are charged by such Operator to the working interest in the ▇▇▇▇▇ which constitute the Net ▇▇▇▇▇ held by the Manager pursuant to the Operating Agreements and transferred to the Company pursuant to this Agreement, including costs of acquisition, maintenance and operation of equipment, labor, materials, supplies, cementing, casing, well treatment, engineering, geology, surveying, or other technical or consulting services, permitting, bonding, well logs, utilities, insurance, administrative and office expenses and Operator overhead, through Completion. The Manager further agrees to enforce, on behalf of the Company, the obligation of the Operators to cause and supervise the acquisition and installation of the Post-Completion Facilities specifically identified on the AFE with respect to each Net Well or such other post-Completion Facilities as may be actually installed with respect to such ▇▇▇▇▇ to place them in production, with due diligence and in a good and workmanlike manner, and further agrees to provide and pay for the acquisition and installation of all such Post-Completion Facilities with respect to the Net Well(s) and which are charged by such Operator to the working interest in the ▇▇▇▇▇ which constitute the Net ▇▇▇▇▇ held by the Manager pursuant to the Operating Agreements and transferred to the Company pursuant to this Agreement. C.

Drilling and Completion. (a) All Carry ▇▇▇▇▇ shall be drilled and completed as Horizontal ▇▇▇▇▇ (unless otherwise agreed by Operator and Carbon TN Mining Co) in accordance with the terms of the Operating Agreement. ▇▇▇▇▇▇▇▇ will be charged pursuant to the Operating Agreement unless otherwise set forth herein. The location of each Well shall be determined by the Operator in its sole discretion. Operator shall complete, equip and produce, or plug and abandon each of the ▇▇▇▇▇, with due diligence and reasonable dispatch in accordance with applicable laws and the Operating Agreement. (b) With respect to the Tennessee Mining Tract, Operator will provide to Carbon TN Mining Co (i) copies of daily production reports with respect to all completed ▇▇▇▇▇, (ii) at least quarterly with respect to all completed ▇▇▇▇▇ (A) production charts, records and information, (B) all forms and reports filed with any governmental entity and (C) information concerning the drilling, testing and completing of the ▇▇▇▇▇, (iii) upon request of Carbon TN Mining Co, current schedules of the Leases and the ownership interests of all working interest owners in the Leases and (iv) as requested by Carbon TN Mining Co, other information relating to the Leases, Carbon TN Mining Co Working Interest, ▇▇▇▇▇ or any operations otherwise conducted on the Tennessee Mining Tract or with respect to any other assets in which Carbon TN Mining Co jointly owns an interest with Operator or its affiliates that is in the possession of Operator or its Affiliates or is available to, or can be produced by, Operator or Operator without undue burden.

Drilling and Completion. ‌ Production results from the initial ▇▇▇▇▇ would be used to plan future drilling programs. Fewer ▇▇▇▇▇ may be drilled than are proposed because of geologic and market uncertainties or changes in drilling and completion methods. Drilling operations would be conducted in compliance with Federal Oil and Gas Onshore Orders and all applicable NMOCD rules and regulations. A mobile drilling rig (“rig”) and other equipment would be transported to the location, where components would be assembled and the rig ▇▇▇▇▇▇▇ erected. Other facilities and equipment that would be on the drilling site include: pipe racks, catwalk, ▇▇▇▇▇▇, rig personnel camper trailers, closed loop mud system, and personnel vehicles. Drilling would begin, continuing through any fresh water bearing formations, then halt. A “shoe” (i.e. a seal) would be landed at the bottom of the hole, a surface pipe (“surface casing”) would be installed from the surface down to the shoe. Cement would be circulated between the rough wall of the well bore and the casing pipe (“annulus”). The casing would be pressure-tested to ensure that a seal has been created. After the cement is sufficiently cured, drilling would resume and continue until reaching the production zone or other identified “target” formation. An intermediate casing would be installed and cemented in place through most or all of the open hole section just drilled in order to seal off any zones that may present problems in drilling deeper portions of the well and to maintain the integrity of the hole. Drilling would resume, entering and continuing horizontally through the target formation to the bottom hole location. A production casing or “production liner” (shortened string of casing that suspends from the intermediate casing) would typically then be landed and cemented in place. Casings prevent interzonal interaction between fluids from different geologic strata, particularly oil and gas bearing zones and usable water zones, and help to maintain the integrity of the bore. Drilling operations would continue 24-hours a day until complete. Drill cuttings would be hauled from the location and disposed of at an approved facility. Following drilling, the drilling rig is typically moved off the location, and a smaller completion rig is moved onto the location. Perforations would be shot through the production string across the zone of the target formation to provide entry points for the hydraulic fracturing fluids. If hydraulic fracturing is planned, ...