Exploratory Operations at Objective Depth Sample Clauses

Exploratory Operations at Objective Depth. After an Exploratory Well has been drilled to its Objective Depth and all operations in the controlling AFE have been conducted or terminated (except temporary abandonment and permanent plugging and abandonment) and all logs and test results have been distributed to the Participating Parties, the Operator shall promptly notify the Parties entitled to make an Election on an operation proposed under this Article 10.2 of its proposal to conduct subsequent operations in the well. Except for a proposal to permanently plug and abandon the well, the Operator’s proposal shall include an associated AFE and a plan for the operation. The Parties entitled to make that Election are: (a) the Participating Parties, and (b) the Non-Participating Parties in the original well proposal if (1) the subsequent Exploratory Operation proposal is made at the well’s Objective Depth and is for a Sidetrack or Deepening and (2) Article 16.2 (Acreage Forfeiture Provisions) was not applicable to the drilling of that Exploratory Well. The Operator’s proposal shall be for one of the following operations: (a) conduct Additional Testing, Sidewall Coring, or Logging of the formations encountered prior to setting production casing; (b) Sidetrack the well bore to conventionally core the formations encountered; (c) Deepen the well to a new Objective Depth; (d) Sidetrack the well (however, if in the Operator’s sole opinion a casing string is required to Deepen the well, then option “d” shall have priority over Deepening the well to a new Objective Depth); (e) conduct Production Testing; (f) conduct other operations on the well not listed; (g) temporarily abandon the well; or (h) permanently plug and abandon the well. If an Exploratory Well is temporarily abandoned under (g), then any additional operation in that well shall be proposed as a new well operation. A proposal to complete an Exploratory Well that has been temporarily abandoned under clause (g) shall be deemed a Development Operation proposal. If the Operator fails to submit its proposal to the Participating Parties within twenty-four (24) hours (inclusive of Saturdays, Sundays, and federal holidays) after receipt of all logs and test results from an Exploratory Well by the Participating Parties, then any Participating Party may make a proposal. In that event, the procedures in this Article 10.2 shall apply to that proposal, and any reference in this Article 10.2 to the “Operator’s proposal” shall include a proposal made by a Participat...