Common use of Initial Test Well Clause in Contracts

Initial Test Well. NEWFIELD, as operator under the Operating Agreement (defined in Article III below), and subject to rig availability and obtaining all requisite permits, agrees to use reasonable efforts to commence, or cause to be commenced, on or before [Redacted], actual drilling of the [Redacted] (“ITW”) at an approximate surface coordinate location of[Redacted]. The ITW is to be drilled as an Exploratory Well (as such term is used in the Operating Agreement) to 22,000’ MD / TVD or a depth sufficient to test the stratigraphic equivalent of the ‘21,000’ and 22,000’ Sand’ (the “Objective Depth”), whichever is the lesser depth. An Authority for Expenditure (“AFE”) for the ITW is attached to this Agreement as Exhibit “A-1” (the “Approved AFE”) and by the execution hereof, each of NEWFIELD and RIDGEWOOD agrees to participate in the drilling of the ITW in accordance with the terms hereof. Contemporaneously with the execution of this Agreement, RIDGEWOOD agrees to execute and deliver to NEWFIELD a counterpart copy of the Approved AFE. The failure to timely commence the drilling of the ITW and the Parties agreement to terminate this Agreement, shall result in the termination of this Agreement, the return of the Cash Consideration by NEWFIELD to RIDGEWOOD and the reassignment from RIDGEWOOD to NEWFIELD of all of its record title interest in and to the Leases. Otherwise, there shall be no penalty for failure to timely commence the drilling of the ITW. [Redacted] Prospect Ridgewood Energy Corporation 2 Participation Agreement

Initial Test Well. NEWFIELDIf Operator fails to drill the Initial Test Well or any successive Initial Test Well or fails to drill any Initial Test Well to Initial Contract Depth, or to furnish the notices and other information required herein, all in the manner and time herein provided, then Operator shall be deemed to have forever relinquished its right to acquire any interest in the Contract Acreage from that point forward. If Operator (i) drills an Initial Test Well or Continuous Option Test Well capable of production in paying quantities to Initial Contract Depth or Option Contract Depth, respectively, (ii) Completes it as operator under a producer, (iii) submits evidence thereof, and (iv) otherwise complies with and performs all other terms, covenants, and conditions hereof, all in the Operating Agreement manner and time herein provided, then Operator shall earn and be entitled to receive from Farmor, a Lease (defined in Article III belowas hereafter defined), and subject to rig availability and obtaining all requisite permits, agrees to use reasonable efforts to commence, or cause to be commenced, on or before [Redacted], actual drilling effective 30 days from the date of the [Redacted] (“ITW”) at an approximate surface coordinate location of[Redacted]. The ITW is to be drilled as an Exploratory release of the rotary rig from the Test Well (as such term is used covering all of Farmor's Oil and Gas Estate in the Operating Agreement) respective drillsite Section limited to 22,000’ MD / TVD or a depth sufficient to test those depths and formations lying between the stratigraphic equivalent surface of the ‘21,000’ earth and 22,000’ Sand’ 100 feet below the total depth drilled (the “Objective Earned Depth”). The Lease earned by Operator shall (i) be for a primary term of three (3) years; (ii) provide for a lessor's royalty of twenty percent (20%), whichever is the lesser depth. An Authority for Expenditure (“AFE”) for the ITW is attached to this Agreement as Exhibit “A-1” (the “Approved AFE”) and by the execution hereof, each of NEWFIELD and RIDGEWOOD agrees to participate in the drilling of the ITW proportionately reduced in accordance with the terms hereof. Contemporaneously with interest leased (“Royalty”); (iii) be without warranty of title; (iv) be subject to any gas sales, purchase, transportation or gathering contracts affecting the execution leased lands on the date of this AgreementContract; and (v) be substantially in the form of lease attached hereto as Exhibit "B" (the “Lease”). Anything to the contrary hereinabove notwithstanding, RIDGEWOOD agrees to execute and deliver to NEWFIELD a counterpart copy it is understood that Operator must request such Lease in writing within sixty (60) days from the date the Operator Completes said Test Well, time being of the Approved AFEessence in this Contract, or Operator shall have waived its rights to such Lease and this Contract shall, at Farmor's option, terminate. The failure If Operator earns a Lease as provided herein, the rights and obligations between the parties as to timely commence the drilling interest earned under the Lease shall thereafter be governed by the terms of the ITW and the Parties agreement to terminate this Agreement, shall result in the termination of this Agreement, the return of the Cash Consideration by NEWFIELD to RIDGEWOOD and the reassignment from RIDGEWOOD to NEWFIELD of all of its record title interest in and to the Leases. Otherwise, there shall be no penalty for failure to timely commence the drilling of the ITW. [Redacted] Prospect Ridgewood Energy Corporation 2 Participation AgreementLease.

Initial Test Well. NEWFIELD, as operator under the Operating Agreement (defined in Article III below), and subject to rig availability and obtaining all requisite permits, agrees to use reasonable efforts to commence, or cause to be commenced, on or before [Redacted], actual drilling of the [Redacted] (“"ITW”") at an approximate surface coordinate location of[Redacted]. The ITW is to be drilled as an Exploratory Well (as such term is used in the Operating Agreement) to 22,000’ MD / TVD or a depth sufficient to test the stratigraphic equivalent of the ‘’21,000’ and 22,000’ Sand’ (the “Objective Depth”), whichever is the lesser depth. An Authority for Expenditure (“AFE”) for the ITW is attached to this Agreement as Exhibit “A-1” (the “Approved AFE”) and by the execution hereof, each of NEWFIELD and RIDGEWOOD agrees to participate in the drilling of the ITW in accordance with the terms hereof. Contemporaneously with the execution of this Agreement, RIDGEWOOD agrees to execute and deliver to NEWFIELD a counterpart copy of the Approved AFE. The failure to timely commence the drilling of the ITW and the Parties agreement to terminate this Agreement, shall result in the termination of this Agreement, the return of the Cash Consideration by NEWFIELD to RIDGEWOOD and the reassignment from RIDGEWOOD to NEWFIELD of all of its record title interest in and to the Leases. Otherwise, there shall be no penalty for failure to timely commence the drilling of the ITW. [Redacted] Prospect Ridgewood Energy Corporation 2 Participation Agreement.