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:
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. 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 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. Buyer shall spud, drill and complete the well currently permitted as Skull Valley Federal 21-1, located in Section 21, T.3S., R.9W., SLM, on or before September 1, 2008 (the “Drilling Obligation”), subject to the condition set forth below in Section 12.02 and the right of Buyer to pay Seller for one or more Extension Periods as set forth below in Section 12.03. Until satisfaction of the Drilling Obligation by Buyer, Buyer shall not convey any interest in the Assets, or any part thereof, to any individual or entity without the prior written consent of Seller (except to a wholly-owned subsidiary of Buyer) and the execution of all documents necessary to secure Seller’s rights set forth under this Article. All costs associated with the maintenance of the Assets (including but not limited to payment of lease fees and rentals) and any and all costs, fees and expenses associated with and related to the drilling and completion (and plugging and abandonment, if necessary) of Skull Valley Federal 21-1 shall be borne by Buyer. Upon Seller’s request, Buyer agrees to provide Seller with information and documentation evidencing performance of, and payment for, the Drilling Obligation. To secure Buyer’s Drilling Obligations, Buyer shall deliver an Assignment and Xxxx of Sale for the benefit of Seller in the form attached hereto as Exhibit C, to be held in escrow by Seller until released in accordance with Sections 12.04 or 12.05 below.
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.
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. In consideration of the transfer of the Assigned Interest, the Assignee will meet its Earning Obligation as set out in Schedule 2.
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 Frio and Vicksburg sand packages as seen by electric log analysis in the Xxxxxxx Kuestar A-207A #1 Well drilled on the Farmout Acreage by Petroglyph Energy, Inc. or to a depth of 4,500 feet, whichever depth may be the lesser depth.
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.
