Initial Well. The Operator shall serve an Operation Notice to the Parties for the drilling of the Initial Well. Notwithstanding the provisions for Commencement in Clause 10.03 of the Operating Procedure, the Parties agree that Commencement of the Initial Well shall occur on or before the Obligation Date. Except as otherwise provided in the preceding sentence, the Operating Procedure shall apply to the Initial Well.
Initial Well. The Operator shall serve an Operation Notice to the Parties for the drilling of the Initial Well.
Initial Well. Following Petrogen's signing and delivery of the Assignment and Nortex's payment of the Cash Consideration, Petrogen and Nortex will agree upon a location on the Leases and a spud date for the drilling of a well ("INITIAL WELL") to test the Miocene formation. Such agreement shall be memorialized in a detailed Authority for Expenditure ("AFE"). Nortex will pay fifty percent of eight-eighths (50% of 8/8) of the costs for the Initial Well until it is either plugged and abandoned as a dry hole or completed and producing into the tanks or a sales pipeline at or above the Miocene formation. To the extent that costs for the Initial Well exceed one-hundred ten percent (110%) of the AFE'd costs, Nortex will pay only thirty-seven and one-half percent (37.5%) of the costs that exceed one-hundred ten percent (110%) of the costs incurred in drilling and completing the Initial Well. After the Initial Well, Nortex will pay its thirty-seven and one-half percent of eight-eighths (37.5% of 8/8) share of all operations on the Leases.
Initial Well. Within 120 days of delivery of the final processed/inverted Data from the 3-D Survey, Buyer shall elect either: (i) to participate in the drilling and completion of and pay, to the extent of the Buyer Promoted Interest, the actual costs of the Initial Well through completion but not equipping for production, the location and drilling objectives thereof which shall be selected at the discretion of Buyer in consultation with Seller; however the disproportionate cost payment shall have a cap of 110% of the agreed AFE costs for the Initial Well (the “Cap”), and Buyer shall only be responsible for the Buyer Working Interest share of any costs in excess of the Cap and Seller shall be responsible for the Seller Working Interest share of any costs in excess of the Cap; or (ii) not to drill the Initial Well in which case Buyer shall retain a Six and Two-Thirds Percent (6 2/3%) Working Interest in the AMI (“Buyer New Interest”), in consideration for paying the Buyer Promoted Interest share of the costs for the 3-D Survey, and reassign a Seven and One-Twelfth Percent (7 1/12%) Working Interest in the AMI to Seller from the Buyer Working Interest. In such event, the Parties shall agree on an initial prospect area, which will include potentially productive acreage in and around the Initial Well location and Buyer will retain 6 2/3% in such initial prospect area. Seller may farm-out or otherwise dispose of the reassigned interest to third parties at its discretion. If Seller farms out at least a 42.5% working interest in the Initial Well, then Buyer shall agree either to participate in the drilling of the Initial Well, to the extent of the Buyer New Interest, or farm out under the same terms that Seller negotiates with a third party or parties. If Buyer participates to the extent of the Buyer New Interest, such participation shall be governed by the terms of the Operating Agreement. If Buyer makes an election pursuant to (i) above to participate in the drilling and completion of the Initial Well to the extent of the Buyer Promoted Interest share of the costs thereof, then Seller shall provide Buyer an invoice (or cash call) for Buyer’s share of the costs of the Initial Well in the estimated amount of the expense to be incurred during the next succeeding month. Buyer shall fund such invoice (or cash call) within fifteen (15) days upon receipt thereof. During the conduct of operations of the Initial Well, Seller shall timely provide Buyer, via email, copies of all daily d...
Initial Well. As additional consideration for this Agreement, BEUSA agrees to commence or cause to be commenced the drilling of a well in search of oil and/or natural gas in commercial quantities (the "Initial Well")
Initial Well. Crimson, as Operator of the Contract Area, shall use its best efforts to commence operations for the drilling and completion of the Initial Well on or before November 15, 2011 at Crimson’s recommended location after conducting title examination and consulting with the surface owner. The Initial Well will be drilled to the Eagle Ford Shale Formation in a continuous, diligent and workmanlike manner pursuant to the terms of the JOA, and in accordance with AFE and accompanying well plan for such well. The Initial Well and all subsequent wxxxx and operations in the Contract Area shall be subject to the terms of the JOA.
Initial Well. At the termination of the Evaluation Period by Farmee, or on or before June 30, 2011 whichever occurs first, Farmee agrees that it shall spud the initial well somewhere within the Prospect at a location of Farmee's sole and exclusive discretion and to a depth that will penetrate the XxXxxxxxx formation (the "Initial Well"). Should Farmee be unwilling or unable to spud the Initial Well before the deadline, then the penalties outlined below within Article V regarding the reassignment obligations of Farmee shall control.
Initial Well. 6.1 The "Initial Well" will be drilled from a surface location of X= 2,481,386 and Y= 92,725 to a bottomhole location of X=2,481,386 and Y= 90,916, to a depth sufficient to test the PD Sand Amplitude or to a depth of 18,350 feet MD and 17,900 feet TVD, whichever is lesser ("Objective Depth"), in accordance with the AFE attached hereto as Exhibit "B".
6.2 Subject to permitting, rig availability and events of Force Majeure, GOM shall use all commercially reasonable efforts to commence operations on the Initial Well within one hundred fifty (150) days of the Effective Date hereof.
6.3 In the event operations for the Initial Well are not commenced by GOM or other third party, if GOM is not the operator, within one hundred fifty (150) days of the Effective Date hereof, other than for reasons attributable to permitting, rig availability, or Force Majeure, then Ridgewood may, within thirty (30) days following such one hundred fifty (150) day period, elect to terminate this Agreement and Ridgewood hereby agrees, in the event of such termination, to reassign to GOM the Working Interest assigned to Ridgewood pursuant to this Agreement; provided, however, such assignment to GOM shall be in substantially the same form of assignment as GOM's assignment to Ridgewood and the Working Interest reassigned to GOM shall be free and clear of all liens, claims, encumbrances and burdens created by, through or under Ridgewood.
6.4 In the event operations for the Initial Well are not commenced within three hundred (300) days of the Effective Date hereof, other than for reasons attributable to permitting, rig availability, or Force Xxxxxx, and the Agreement has not been terminated per Article 6.3 above, then GOM, at its sole discretion, may request a reassignment of the Working Interest assigned to Ridgewood pursuant to this Agreement and Ridgewood hereby agrees under such circumstances to promptly execute such reassignment. Such assignment to GOM shall be in substantially the same form of assignment as GOM's assignment to Ridgewood and the Working Interest reassigned to GOM shall be free and clear of all liens, claims, encumbrances and burdens created by, through or under Ridgewood.
6.5 GOM shall provide Ridgewood with copies of all well information from the Initial Well and any other well as indicated and required under the Operating Agreement or any operating agreement in existence and covering the Prospect which Ridgewood becomes a Party to in accordance with Article 5.2.
6.6 I...
Initial Well. Subject to the FOA, Operator shall commence the drilling (“Commence the drilling” is defined as, starting the drilling process by obtaining and/or completing one or more of the following: permits, drill site location, roads, sumps, cellar, rat & mouse hole and setting conductor pipe) of the Initial Well at the following location: XXX xx X00X, X00X xx Xxxx Xxxxxx, California. Exact coordinates to be established by survey, and shall thereafter continue the drilling of the well with due diligence to a depth sufficient to test the Xxxxxx Sand seismic anomaly at +/- 14,000 feet or to a lesser depth should impenetrable formations, hole conditions or mechanical problems be encountered that would render further drilling impractical in keeping with good oilfield practice. The drilling of the Initial Well and the participation therein by all parties is obligatory, subject to Article VI.C.1. as to participation in Completion operations and Article VI.F. as to termination of operations and Article XI as to occurrence of force majeure.
Initial Well. In respect of section 3.2 of the Agreement the same is amended as follows: “Separately and not dependent on the other’s participation, each of 858642 and Xxxxxxx shall pay 9.375% of the actual cost of re-entering and production testing of the Initial Well to a depth of 1,650 metres. API estimates the total cost at roughly $425,000 Cdn.
