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. In October 1999, Leviathan executed an agreement with El Paso Production Company ("EPP"), formerly Sonat Exploration Company, to farm out its working interest in the Xxxxx Bank 958 Unit. Under the terms of the farmout agreement, Leviathan increased its overriding royalty interest in the Xxxxx Bank NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) 958 Unit, convertible at its option, into an undivided working interest once EPP has recouped the costs associated with its drilling and completion activities on the Xxxxx Bank 958 Unit. In July 1999, Leviathan entered into a contract with MODEC International, L.L.C., ("MODEC") for the design, construction, fabrication and installation of the hull, tendons, pilings and production risers for a tension-leg platform ("TLP") to be used as part of the Xxxxx Bank 958 Unit development. Upon the farm out of the Xxxxx Bank 958 Unit, Leviathan suspended the construction of the TLP and is currently discussing its use at a different location with several major producers. Leviathan expects to incur up to $10 million of costs related to the TLP which is expected to be recovered through the Xxxxx Bank 958 Unit farmout agreement. As a result, management does not expect the ultimate resolution of this matter to have a material adverse effect on Leviathan's consolidated financial position, results of operations or cash flows. Leviathan is involved from time to time in various claims, actions, lawsuits and regulatory matters that have arisen in the ordinary course of business, including various rate cases and other proceedings before the Federal Energy Regulatory Commission. Leviathan and several subsidiaries of El Paso Energy have been named defendants in actions brought by Xxxx Xxxxxxxx on behalf of the United States Government under the False Claims Act. Generally, the complaints allege an industry-wide conspiracy to underreport the heating value as well as the volumes of the natural gas produced from federal and Indian lands, thereby depriving the United States Government of royalties. Leviathan and El Paso Energy believe the complaint is without merit, and will not have a material adverse effect on Leviathan's consolidated financial position, results of operations or cash flows. Leviathan is a defendant in a lawsuit filed by Transco Gas Pipe Line Corporation ("Transco"). Transco alleges that a platform space agreement entered into on June 28, 1994, with Leviathan grants Transco the right to expand its faciliti...
Farmout. In October 1999, we farmed out our working interest in the Prince Field to El Paso Production. Under the terms of the farmout agreement, our net overriding royalty interest in the Prince Field increased to a weighted average of approximately 9 percent. Once El Paso Production recoups the costs associated with its drilling and completion activities on the field, we can convert our royalty interest into a 30 percent undivided working interest. EL PASO ENERGY PARTNERS, L.P. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) Other In 0000, Xxxxxx Xxxxxxxx announced its intent to reserve its remaining costs associated with certain of its xxxxx as a result of production problems. Accordingly, we recorded a charge totaling $21.2 million in the consolidated statements of operations. This charge consisted of approximately $6.4 million to reserve our investment in certain gathering facilities and other assets associated with these properties, approximately $3.8 million to fully accrue its abandonment obligations associated with the gathering facilities serving these properties, approximately $9.1 million to reserve its noncurrent receivable related to the prepayment of the demand charge obligations under certain agreements, and approximately $1.9 million to accrue certain abandonment obligations associated with its Viosca Xxxxx and Garden Banks properties. During 1998, we abandoned our Xxxxx Bank flowlines at a cost of $2.9 million and recorded a credit to impairment of $1.1 million, which represented the excess of the accrued costs over the actual costs incurred associated with the abandonment of the flowlines.
Farmout. On June 26, 2015 (the “Earn-In Closing Date”) and under seven separate Earning Agreements (the “Earning Agreements”), Paltar will farm out three specific graticular blocks in each of the six petroleum exploration permits identified in Schedule A and will cause Officer to farm out forty blocks in EP 468 in exchange for Nation’s (i) issuance of an aggregate 600 million Nation common shares (the “Nation Shares”) to Paltar, with an agreed value of US$.0333 per share, on the second business day following the Nation Meeting (defined in Paragraph 3, below), and (ii) payment to Paltar of an aggregate $5,315,000 by December 31, 2015. Each Earning Agreement will require that Nation Australia perform all necessary work and make all necessary expenditures to keep each concerned exploration permit in full force and effect until production licenses have been granted covering the three blocks identified in that permit, although Nation Australia may voluntarily terminate the Earning Agreement and surrender any further earning rights after the end of three permit years. Upon issuance of a production license covering one of the blocks, Paltar (or, if applicable, Officer) will assign its interest in such license, insofar as it covers the block, to Nation Australia. Production licenses are granted only where there has been a petroleum discovery, so there is no assurance that production licenses will be granted covering any of the blocks. There has been no discovery of petroleum on any of the permits and the permits produce no revenues.
Farmout. Richfield and Skyline shall continue to cooperate in efforts to farmout the project for the mutual benefit of both companies.
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.
