Initial Additional Prospect Well Election Clause Samples

Initial Additional Prospect Well Election. A Party shall have fifteen (15) days from the date of its receipt of an Initial Additional Prospect Well Proposal to provide the proposing Party with written notification as to whether or not it elects to participate in such Initial Additional Prospect Well, and if so, at what percentage of participation. Should a Party fail to timely make any such election, the proposing Party shall provide the electing Party with a written Failure Notice and the electing Party shall have an additional three (3) business days from its receipt of such Failure Notice to make such election to the proposing party. Failure of the electing Party to respond within such time period shall be deemed an election not to participate. An election not to participate in such Initial Additional Prospect Well shall immediately result in the electing Party’s forfeiture to the proposing Party of all of its right to participate in said Additional Prospect and the Additional Prospect Contract Area, including but not limited to, all Leasehold Assets and Oil and Gas Properties within such Additional Prospect Contract Area, without any reimbursement. The Parties hereto agree to timely execute whatever documents and assignments are necessary to effect such forfeiture and relinquishment within thirty (30) days from said election not to participate. The electing Parties shall enter into an Additional Prospect JOA in substantially the same form as the JOA but reflecting the appropriate changes thereto to establish the Additional Prospect Contract Area, the percentages of working interest elected for participation by each Party and the pertinent terms and provisions relative to the Initial Additional Prospect Well as set forth in the Initial Additional Prospect Well Proposal. Should a Party participate in the Initial Additional Prospect Well, but non-consent a subsequent well within such Additional Prospect Contract Area, said non-consent penalty shall be as set forth in the governing Additional Prospect JOA.