Drilling Commitment a. Subject to the occurrence of Closing, MHR and NGAS agree that they shall cause MHR, NPC and their respective Affiliates, to spend, in the aggregate, a minimum of $20 million (net of general, administrative, and supervision costs) during the remainder of calendar year 2011 subsequent to Closing and a minimum of $20 million (net of general, administrative, and supervision costs) during calendar year 2012 on commencing drilling and the actual completing of new horizontal gas xxxxx during each such calendar year, on the Committed Reserve Area, as defined in the NAESB Purchase Agreement (including operations to rework, sidetrack, deepen, recomplete or plug back such new horizontal gas xxxxx) (“New Well Drilling Expenditures”). In the event drilling commences on a new horizontal gas well in either calendar year 2011 or calendar year 2012 and such well is actually completed in the first sixty (60) days of calendar year 2012 or the first forty-five (45) days of calendar year 2013, the costs of the actual drilling and completing of such well shall be credited to the minimum of the applicable calendar year and captured in the applicable Annual Statement described below. Further, credit against the 2011 minimum will also be provided for the cost of the actual drilling and completing of new horizontal gas xxxxx by MHR, NPC and their respective Affiliates during calendar year 2011, but prior to Closing, where the drilling activity on a well commenced on or after January 1, 2011 and where prior to Closing SES receives a schedule and supporting documentation (including, but not limited to third party invoices), together with a certification by an authorized officer, of the actual out of pocket costs for drilling and completing of such new horizontal gas as of Closing. For the avoidance of doubt and notwithstanding the completion date, in no event shall such new horizontal gas xxxxx be considered “Existing Xxxxx” as such term defined in the Gathering Agreement.
b. Within ninety (90) days after the end of calendar year 2011 and seventy-five (75) days after the end of calendar year 2012, MHR shall provide SES with a statement of the total New Well Drilling Expenditures by MHR, NPC and its Affiliates during such year (“Annual Statement”). For each year in which such New Well Drilling Expenditures are less than $20 million, within ninety (90) days after the end of calendar year 2011 and seventy-five (75) days after the end of calendar year 2012, MHR shall pay to SES, by wi...
Drilling Commitment. Except as set forth on Exhibit L, Seller has not paid, incurred or otherwise committed from and after the Effective Date to any expenditures in excess of $25,000, net to the interest of Seller for any single operation, with respect to the drilling, completion, recompletion or rework of any well not shown on Exhibit C hereof and no such expenditures are pending and unapproved.
Drilling Commitment. (a) Farmee shall be required to drill (or participate, including by way of farmout, in the drilling by third parties) to the Target Formations on the Leases or lands pooled or unitized therewith (collectively, the "Contract Area") the following minimum number of xxxxx (the "Obligation Xxxxx" and each such well, an "Obligation Well") as of the time periods indicated (each such time period, a "Calendar Period") Effective Date through December 31, 2009: eight (8) xxxxx; 8 January 1, 2010 through December 31, 2010: sixteen (16) xxxxx; 24 January 1, 2011 through December 31, 2011: twenty-four (24) xxxxx; 48 January 1, 2012 through December 31, 2012: twenty-four (24) xxxxx; 72 January 1, 2013 through December 31, 2013: twenty-four (24) xxxxx; 96 January 1, 2014 through December 31, 2014: twenty-four (24) xxxxx; 120 January 1, 2015 through December 31, 2015: twenty-four (24) xxxxx; 144 January 1, 2016 through December 31, 2016: twenty-four (24) xxxxx; 168 January 1, 2017 through December 31, 2017: eleven (11) xxxxx; 179
(b) Notwithstanding anything to the contrary herein, in the event that Farmee drills (or participates, including by way of farmout, in the drilling by third parties) any number of Obligation Xxxxx within the Contract Area that are in excess of the required minimum Obligation Xxxxx in any Calendar Period under Section 1(a) hereof, then those number of Obligation Xxxxx in excess of such required minimum Obligation Xxxxx for such Calendar Period shall be credited to Farmee's drilling obligations in subsequent Calendar Periods on a cumulative basis. By way of example only, if during the Calendar Period of 2009, Farmee drills (or participates, including by way of farmout, in the drilling by third parties) 28 Obligation Xxxxx, then Farmee shall be deemed to have satisfied its drilling obligations for the Calendar Periods of 2009 and 2010 and it shall be credited with drilling 4 of the Obligation Xxxxx required to be drilled in the Calendar Period of 2011.
(c) It is anticipated by the Parties that the majority of the Obligation Xxxxx will be horizontal xxxxx with the horizontal portion of each wellbore being of a reasonable and practical length given the geological, leasehold and surface conditions. Notwithstanding the foregoing, and unless the Parties otherwise agree, to qualify as a horizontal well hereunder, once the wellbore reaches the Target Formations in no event shall the lateral length of such horizontal wellbore be less than 1,600 feet in lengt...
Drilling Commitment. Irrespective of whether the Parties have executed this Agreement and Closing occurs hereunder, Buyer has agreed in the Letter Agreement to drill, complete, equip, and connect (or, if dry, to properly plug and abandon and reclaim), either as producers or dry holes, not less than twelve (12) new oil and gas xxxxx on the Leases and Lands on or before September 1, 2004 (the "Commitment Xxxxx"), at locations of Buyer's choice. Each Commitment Well shall be drilled at Buyer's sole cost and expense to a depth at least sufficient to test the Canyon Formation. North Xxxx, LLC, shall act as contract operator for the drilling of each Commitment Well and shall conduct such drilling operations in compliance with applicable laws and in a good and workmanlike manner.
Drilling Commitment. The Purchaser agrees to drill a minimum of 15,000 meters, allocated to its working interest in which the Net Profits Interest described in Item 2.04 is applicable, over the next three years as follows: 214 5000 meters prior to August 31, 2000 an additional 5000 meters prior to August 31, 2001 an additional 5000 meters prior to August 31, 2002 This drilling commitment is equivalent to drilling 20- 1000 meter xxxxx in which the Purchaser owns a 75% working interest on lands that the Net Profits Interest is applicable.
Drilling Commitment. During each of calendar year 2012 and 2000 Xxxxxxx agrees to commence or cause to be commenced, drilling operations for at least three wxxxx within pooled units that include Subject Leasehold.
Drilling Commitment. Upon exercise of the Option, Euramerica agrees to pay Midwest $2,000,000 on or before August 31, 2008 to drill, complete and put on production (including the remaining xxxxx of Article 6, the Teats secondary recovery and any modification required to the Surface Production Facility) on the Property as the funds will allow during 2008. However, Midwest cannot guarantee any of the exploratory xxxxx will be of sufficient quality to complete. Midwest will continue to act as Operator on a cost plus 17.5% basis for all xxxxx drilled.
Drilling Commitment. By December 1, 2004, Producer commits to drill (including existing xxxxx), complete and produce a minimum of eighty (80) xxxxx from within the dedicated acreage described in Exhibit "B".
Drilling Commitment. AEI shall drill and complete, if warranted, not less than six (6) xxxxx over a period of two (2) years at such locations as may be selected by AEI after consultation with Xxxxxxx, with the first of such xxxxx to be commenced within six (6) months of the date of the acceptance by AEI of the last of the oil and gas leases covering the Leased Lands. Each well drilled and completed on the Leased Lands or, in the event the option herein described is exercised by AEI, on the Option Lands, irrespective or whether classified as an oil or gas well, that is capable of producing oil and/or gas in paying quantities shall hold, and shall be considered for the purposes of this Agreement to be production from, Six Thousand Four Hundred (6,400) acres of the Lease Lands or Option Lands, as applicable. After AEI has earned Thirty Eight Thousand Four Hundred (38,400) acres by drilling the xxxxx required to hold this acreage, the royalty percentage in the oil and gas leases for all of the acreage in excess of Thirty Eight Thousand Four Hundred (38,400) covered by leases from Xxxxxxx to AEI in the Area of Mutual Interest described in Section 6 below shall decrease from Seventeen and One-Half percent (17.5%) to Fifteen percent (15%).
Drilling Commitment. (a) Upon execution of the Definitive Agreements, the Magnum Hunter Entities’ sole remaining drilling commitment under the Omnibus Agreement dated March 10, 2011, by and between SES, SGC, NG-II, MHR, MHP (as successor in interest to NGAS Production Co.), NG-I and NGAS Resources, Inc. (the “2011 Omnibus Agreement”) will require that MHP drill and complete four (4) Devonian (either Huron or Cleveland formation) horizontal gas wxxxx capable of producing hydrocarbons (each, a “Devonian Well”) by the end of June 30, 2014 (such commitment being the “New Drilling Commitment” and such date being the “Commitment Date”). The Parties to the 2011 Omnibus Agreement agree that the New Drilling Commitment effectively modifies the 2012 drilling commitment under the 2011 Omnibus Agreement from a $20 million commitment for 2012 to a $10.5 million commitment for 2012, 2013 and that portion of 2014 occurring before the day after the Commitment Date. The Seminole Entities agree that, to date, three wxxxx at a cost of $1.5 million per well have already been drilled and completed pursuant to the New Drilling Commitment. Costs attributable to the four Devonian Wxxxx to be drilled and completed and capable of producing hydrocarbons by the end of the Commitment Date will be applied to the New Drilling Commitment at a credit of $1.5 million per well, thus accounting for the remainder of the $10.5 million required under the New Drilling Commitment.
(b) MHP shall pay SES, by wire transfer of immediately available funds, an amount equal to Two Hundred Twenty-Five Thousand Dollars ($225,000) (being equal to the product of fifteen percent (15%) multiplied by $1.5 million) for each Devonian Well that has not been drilled and completed by MHP and is not capable of producing hydrocarbons by the end of the Commitment Date.
(c) Except as set forth in Paragraphs 1.4(a) and (b), none of the Magnum Hunter Entities owe any further obligations under Section 6 of the 2011 Omnibus Agreement.
