Farmout Agreement Sample Clauses
A Farmout Agreement is a contract in the oil and gas industry where one party (the farmor) agrees to assign an interest in a lease or property to another party (the farmee) in exchange for the farmee performing certain work obligations, such as drilling wells or conducting exploration. Typically, the farmee earns its interest only after meeting specified performance milestones, like completing a well to a certain depth or within a set timeframe. This clause facilitates the sharing of exploration risks and costs, enabling parties to collaborate on resource development while ensuring that the farmor benefits from the farmee’s investment and operational efforts.
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Farmout Agreement. Borrower shall cause the “Farmor” under the Farmout Agreement to deliver to Borrower each assignment earned under the Farmout Agreement in recordable form in the time and manner provided for in the Farmout Agreement, but in no event later than 45 days after such assignment has been earned under the Farmout Agreement. Contemporaneously with the receipt of any such assignment, Borrower shall notify Administrative Agent of its receipt thereof and cause such assignment to be duly and properly recorded and the interests subject of such assignment to be subject to Lender Liens pursuant to documentation in form and substance satisfactory to Administrative Agent.
Farmout Agreement. The consent required from ConocoPhillips Company under the Farmout Agreement shall have been obtained.
Farmout Agreement. Except as modified by the terms of this Agreement, the Terms and conditions of the Farmout Agreement together with its operating provisions shall control the operation of the parties and shall be deemed to be incorporated herein.
Farmout Agreement. For each well drilled in which the Farmee is entitled, and elects, to participate, API Canada and the Farmee shall enter into a farmout agreement in the form to be agreed between the parties.
Farmout Agreement. The Farmout Agreement is valid and in existence.
Farmout Agreement. This Agreement is expressly subject to the Farmout Agreement. If there is any conflict between the terms of this Agreement and the Farmout Agreement, the Farmout Agreement shall control. (See attached Exhibit B)
Farmout Agreement. Seller is not in material breach of the Farmout Agreement and, to Seller’s Knowledge, no other party to the Farmout Agreement is in breach thereof. Seller has not received any written notice alleging default or termination by Seller and, to Seller’s Knowledge, the Farmout Agreement is in full force and effect in accordance with its terms. Seller has made available to Buyer a true, correct and complete copy of the Farmout Agreement and all amendments thereto. The first Initial Earning Well (as defined in the Farmout Agreement) (i) was drilled, tested, completed, Equipped (as defined in the Farmout Agreement) and was producing in accordance with the terms of the Farmout Agreement on or before July 30, 2016, (ii) is currently producing in paying quantities, and (iii) has a lateral length of not less than 3,600 feet. The remaining five Initial Earning ▇▇▇▇▇ have been drilled to Contract Depth (as defined in the Farmout Agreement) in accordance with the Farmout Agreement and each has a lateral length of not less than 3,600 feet. Further, Exhibit 4.1(g) sets forth a full and complete list of elections made by Conoco as of the Execution Date with respect to their participation in any ▇▇▇▇▇ drilled or completed under the Farmout Agreement.
Farmout Agreement. The Farmout Agreement executed by an authorized officer of the Buyer; and
Farmout Agreement. Purchaser agrees to enter into a farmout agreement in the form attached as Exhibit C and on the terms set forth therein, covering all undeveloped leasehold identified by EPLLC not included in the Oil and Gas Interest.
Farmout Agreement. An agreement describing how a third-party may earn a working interest in a well, lease, or unit; may precede the execution of a Joint Operating Agreement* Joint Operating Agreement (JOA) A joint operating agreement governs the relationship between working interest owners in the well, lease, or unit. *Farmout Agreements may require the farmor and farmee enter into a JOA; often with one attached to the Farmout Agreement Farmor Farmee Lease Preservation Lease Salvage Shift drilling costs Obtain Information Identify Subject Lands Drilling of Test Well(s)