Drilling Obligation. Providence shall fund 100% of the costs of drilling four xxxxx (“Obligatory Xxxxx”) in the AMI in accordance with the provisions of Article 4 below. Three of the Obligatory Xxxxx shall be vertical xxxxx drilled to test the Marble Falls Formation and the fourth Obligatory Well shall be a horizontal well to test the Xxxxxxx Shale Formation. The first Obligatory Well shall be commenced on or before January 31, 2006 and drilled in accordance with Section 7.1. The Obligatory Xxxxx shall be drilled “back-to-back” by Xxxxxxx with locations, depths, and other parameters agreed to by the Parties at the first Technical Meeting contemplated in Article 6 below. Notwithstanding the obligatory nature of the Obligatory Xxxxx, Providence shall not be obligated to fund the cost of any Obligatory Well unless and until it has been presented with and has approved a reasonably detailed budget for the well.
Drilling Obligation. Seller shall fund the contracting and operation of a second drilling rig for the production of natural gas from the Dedicated Acreage pursuant to the Drilling Contract. For a period of not less than three (3) years beginning on the Closing Date, Seller shall cause:
(a) two (2) drilling rigs to remain in continuous operation drilling horizontal xxxxx on the Dedicated Acreage with no cessation of operations for either drilling rig of more than thirty (30) days between the completion by the relevant rig of drilling operations in one well and the commencement by such drilling rig of actual drilling operations in the next well;
(b) each well drilled after the Closing Date on the Dedicated Acreage by such drilling rigs to be completed and equipped for the production of oil and gas; and
(c) all xxxxx that produce Dedicated Gas to be produced on a continuous basis without interruption (in the absence of a permanent cessation of production due to depletion of reserves), except as may be necessary for the performance of well maintenance or workover or other operations intended to improve or restore production. Notwithstanding the foregoing, Seller shall not be liable to Buyer for failure to perform any of its obligations described in this Section 7.5 to the extent such performance is hindered, delayed, or prevented by Force Majeure. If Seller is unable, in whole or in part, to carry out its obligations under this Section 7.5 due to Force Majeure, Seller shall, as soon as possible, give written and verbal notice to Buyer describing the circumstances underlying such Force Majeure, but in any event not later than five (5) days after the discovery of such Force Majeure. If Seller claims Force Majeure pursuant to this paragraph, Seller shall use Reasonable Efforts to remove the cause, condition, event or circumstance of such Force Majeure, and shall resume performance of any suspended obligation as soon as reasonably possible after termination of such Force Majeure. The decision to settle a strike or a labor disturbance is at the sole discretion of Seller to the extent Seller claims Force Majeure.
Drilling Obligation. Farmee, at its sole risk and expense (including title and curative matters) will commence actual operations for the drilling or reworking of the initial test well located upon the Farmout Acreage on or before 45 days after this Farmout Agreement date to a depth sufficient enough to penetrate the cap of the Brookshire Dome or to a depth of 3,000 feet from the surface of the earth, whichever is the lesser depth. Reworking the existing xxxxx located on the said farmout acreage shall apply to this farmout agreement also. Failure by Farmee to commence operations within the time frame and to the depth set forth herein shall, ipso facto, effect termination of this Agreement in its entirety.
Drilling Obligation. Farmee, at its sole risk and expense (including title and curative matters) will commence actual operations at a location of Farmee's choice for the drilling or reworking of the Initial Test Well located upon the Farmout Acreage on or before 60 days after this Farmout Agreement date to a depth sufficient enough to test the Catahoula sand packages and the salt dome cap of the Brookshire Dome or to a depth of 4,500 feet, whichever depth may be the lesser depth.
Drilling Obligation. Farmee, at its sole risk and expense (including title and curative matters) will commence actual operations for the reentry and recompletion of the Xxxxx Heirs #1 Well ("Initial Test Well") located upon the Farmout Acreage on or before 60 days after this Farmout Agreement date in order to attempt to restore production in paying quantities from the Melbourne sand packages which are defined by electric log analysis between the depths of 8,302 feet to 8,330 feet and 8,260 feet through 8,275 feet in the Xxxxx Heirs #1 Well drilled by Xxxxxxx & Company in the Xxxxxxx XX Field of Xxxxxxx County, Texas.
Drilling Obligation. In consideration of the transfer of the Assigned Interest, the Assignee will meet its Earning Obligation as set out in Schedule 2.
Drilling Obligation. Purchaser shall drill and complete two wxxxx on the Leases described on Exhibit A-3 within 12 months following the Closing Date, which wxxxx may be horizontal or vertical and within any zone, in Purchaser’s sole discretion; provided, however, that Purchaser’s completion of the Fundis 1-4H Well (API # 35-125-23741) shall not be deemed to fulfill the requirement of drilling and completing one of the two wxxxx required by this Section 7.6; provided further, that in the event of Force Majeure affecting Purchaser’s ability to drill or complete one or both of the wxxxx contemplated by this Section 7.6, the deadline for drilling and completing one or both of such wxxxx, as applicable, shall be extended by the period of time Purchaser suffers any such events of Force Majeure. Purchaser shall provide Sellers prompt written notice of the occurrence of any such events of Force Majeure and when such event(s) of Force Majeure have been cured. Purchaser shall provide Sellers with copies of daily drilling reports, logs and all other well information with respect to such two wxxxx at the time and in the manner in which such information would be provided to a non-operating working interest owner in good standing. The sole and exclusive remedy for breach of this Section 7.6 shall be the reassignment from Purchaser to Sellers of all of the Non-HBP Leasehold, without any costs to Sellers or refund by Sellers.
Drilling Obligation. Buyer agrees that they will drill a test well with a surface and bottom hole location on the Leases for the purpose of hydrocarbon exploration and production. The well must achieve a depth of 6,000 feet or as otherwise agreed to by the parties in writing. Buyer must begin drilling with a rig capable of total depth within two years of closing. Buyer agrees to re-assign the Leases, without reserving any interest (whether record title, operating rights, overriding royalty interest, or otherwise) if they fail to commence drilling, as set forth in the paragraph.
Drilling Obligation. Buyer shall drill three exploratory wxxxx each at a location chosen by Buyer, in its sole discretion, on the lands covered by the Leases to a depth sufficient in Buyer’s sole opinion to test the New Albany Shale (each a “Commitment Well” and collectively the“Commitment Wxxxx” ). The first Commitment Well shall be commenced no later than May 1, 2007. Buyer shall commence the second and third Commitment Wxxxx on or before the later of May 1, 2008, or within one year from commencement of the first Commitment Well.
Drilling Obligation. ECA and Seller shall execute and -------------------- deliver to Buyer at Closing the Development Agreement. The Development Agreement will require that Seller drill Completed Development Wells sufficient to achieve xxx Total Drilling Commitment on or before the Drilling Obligation Completion Date, in accordance with the terms and conditions set forth in the Development Agreement.
