Farmout. Assignor may from time to time enter into Farmout Agreements farming out to Third Persons Assignor’s interest in the Subject Interests. In the event that Assignor enters into any such Farmout Agreement with a Third Person, (i) the Royalty Interest and this Conveyance shall only burden Assignor’s retained interest in the Subject Interest after giving effect to any interest in the Subject Interest that a counterparty to the Farmout Agreement may earn under such Farmout Agreement and (ii) only the Assignor’s retained interest in the Subject Interest will count towards Assignor’s obligation to drill Development Xxxxx under the Development Agreement.
Farmout. The common petroleum industry transaction by which an oil and gas lease owner contracts to assign a lease or some portion of it to another who undertakes drilling obligations. The assignor usually retains an interest such as an overriding royalty, production payment or working interest. ACCOUNTING AND RATEMAKING
Farmout. Within a period of five (5) years following the Closing, Seller may propose a maximum of two farmout agreements per year covering some or all of Buyer’s interest in the Wind River Assets for exploration activities and Buyer agrees to negotiate with Seller in good faith to enter such farmout agreements on commercially reasonable terms. Seller’s proposal for farmout agreements under this provision may not cover more than 50,000 net acres in the aggregate. The basic economic terms of any farmout agreement would be a farmout of: (1) in the first well - 100% of the working interest; with Buyer to deliver 80% Net Revenue Interest in the subject leases; an option for a back in for 25% working interest after a 200% payout; (2) 25% working interest in subsequent xxxxx within contiguous four section areas; and (3) in order to earn the working interest in such subsequent xxxxx, Seller must spud each subsequent well within 6 months after the completion date for either the first well or a previous subsequent well, as applicable, subject, however, to stipulations contained in the leases issued by the United States of America.
Farmout. Subject to the Farmee funding the costs under section 2.2, the Farmee shall have the right to fund and earn an interest in the Lands, before and after payout, on the terms and conditions provided in this Article 2.
Farmout. Operating Partnership shall have the power and right to enter into farmout agreements with respect to (i) the Overriding Royalty Depth and the Overriding Royalty Surface Acreage, free from any Net Profits Interest but subject to Pension Partnership's Overriding Royalty Interests, and (ii) the Net Profits Depth and the Net Profits Surface Acreage, free from the Overriding Royalty Interest but subject to any Net Profits Interest.
Farmout. Within a period of five (5) years following the Closing, Seller may propose a maximum of two farmout agreements per year covering some or all of Buyer’s interest in the Wind River Assets for exploration activities and Buyer agrees to negotiate with Seller in good faith to enter such farmout agreements on commercially reasonable terms. Seller’s
Farmout. WELLX All wellx xx the Farmout Area which are drilled, sidetracked, deepened, reworked, completed or recompleted by or on behalf of Farmoutee under the terms of this Agreement or in which other downhole operations are performed by or on behalf of Farmoutee to commence or restore production under the terms of this Agreement, LESS AND EXCEPT the Excluded Wellx.
Farmout. Richfield and Skyline shall continue to cooperate in efforts to farmout the project for the mutual benefit of both companies.
Farmout. In consideration of Cliveden's agreement to assume the costs associated with the Concession, as hereinafter provided, Trinity, on behalf of itself and the Consortium, does hereby agree to sell and transfer to Cliveden fifty percent (50%) of the entire working interest in the Concession owned by Trinity. This assignment ix xxxxect to the following terms and conditions:
Farmout. Except with Assignee's prior written consent, which shall not be unreasonably withheld, Assignor may not enter into Farmout Agreements with Third Persons with respect to the Subject Interests in the Subject Development Lands prior to Assignor's satisfying the drilling obligations under Section 2.01 of the Development Agreement, and then only if such Farmout Agreement does not have the effect of reducing Assignor's Net Revenue Interest in any Producing Well to less than the Net Revenue Interest for that Producing Well reflected in Exhibit A-1. In the event Assignor's Net Revenue Interest in any Producing Well is reduced by virtue of any such Farmout Agreement to less than the indicated interests, such reduction shall be deemed a breach of the warranty provided for in Section 1.04(a) and Assignee shall be entitled to the remedy provided for in Section 1.04(b).
