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. On or before May 31st, 2006, or such other mutually agreed date, the Farmee shall participate in the drilling of a minimum of one well (the “Initial Well”) substantially on the terms set out in the Operating Agreement. The Farmee shall have the option but not the obligation to earn up to a 25% Working Interest (WI) in the Initial Well by paying up to 33.33% of all costs and expenses incurred for the joint account under the Operating Agreement respecting the drilling and completion of said Well to its objective depth. Star shall provide notice to the Farmee of the drilling of the Initial Well together with the Authority for Expenditure as described below therefore required at least 15 days prior to the anticipated spud date of the Well, and the Farmee shall have 7 days from receipt of such notice to elect by notice in writing to Star to participate in that Well. Failure to respond within such 7-day period shall be deemed an election by the Farmee not to participate. If the Farmee elects or is deemed to elect not to participate in a Well the Farmee shall maintain their right to participate in any Well proposed thereafter. Once the Initial Well has been drilled to its objective depth the Farmee shall have the right to elect, upon receiving all information available in respect of the Initial Well, to participate in the setting of production casing for and completion of the Initial Well as described in the Authority for Expenditure. If the Farmee elects not to participate in the proposed casing and completion of the Initial Well and such operation is carried out, the Farmee shall be subject to those penalties applicable pursuant to the Operating Agreement. If all parties with an interest in the Initial Well elect to abandon it, the Farmee shall pay its WI share of all costs associated with the plugging and abandoning 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. You shall commence operations for the drilling of a well (sometimes referred to as “Initial Well”), on or before twelve (12) months from the date of Farmor’s execution of this agreement, time being of the essence, at a mutually agreeable, regular location on the Farmout Area, and shall drill with due diligence and in a good and workmanlike manner to a depth of 9,000 feet below the surface or a depth sufficient to adequately test the Yegua Formation, whichever depth is shallower; said depth being sometimes hereinafter referred to as “Objective Depth.” You agree to drill the Initial Well to the Objective Depth in a good faith effort to discover oil and/or gas and to test adequately all oil and/or gas-bearing formations encountered. You agree to complete the Initial Well either as capable of producing oil and/or gas in paying quantities or to properly plug and abandon said well, in compliance with applicable rules and regulations, as a dry hole within one hundred twenty (120) days from commencement of operations on such well. You shall drill the Initial Well to completion, free of any cost or liability to us, whether completed as a well capable of producing oil and/or gas in paying quantities, or plugged and abandoned as a dry hole. In the event you fail to reach the Objective Depth in the Initial Well due to mechanical failure, the encountering of impenetrables or similar conditions rendering further drilling impracticable so that a reasonable and prudent operator would not continue the drilling of the well, you shall have the right to abandon such well and to commence operations at a mutually agreeable, regular location for the drilling of another well (sometimes referred to as “Substitute Well”) to the Objective Depth. If you do choose to drill such Substitute Well, you must commence such operations within thirty (30) days after such abandonment, and proceed to drill in a diligent manner to attain the Objective Depth. The Substitute Well shall be drilled subject to all the terms, provisions, and rights applicable to the drilling of the Initial Well,
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. 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. The initial well under this agreement has already been drilled, and this agreement shall apply to all other operations within the Luther Prospect. The drilling of the Initial Well and the participation in it 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. In respect of the deepening of the Initial Well beyond 1,650 metres, each of 858642 and Xxxxxxx hereby confirm their separate and independent election not to participate in the Drilling Costs in connection with deepening, testing, Completing, Equipping, Capping or Abandoning of the Initial Well, thereby triggering specified penalty provisions within section 1007 of the CAPL Agreement forming a part of Schedule “F” to the Agreement. Subject to API’s receipt of payment from 858642 and/or Xxxxxxx required in this section, each of 858642 and/or Xxxxxxx shall earn seventy-five percent (75%) of their original intended respective interests such that each of 858642 and Xxxxxxx shall earn a 5.1152325% after payout working interest in the Initial Well subject to provisions of the CAPL Agreement as Schedule “F” at section 1007 with application of a 300% penalty election. In the event either of 858642 or Xxxxxxx shall for whatever reason refuse or fail to pay their share of the costs for the re-entering and testing of the 7-32 well, the party not paying their share of costs shall no longer have any interest in either the Athabasca or Firebag Prospects nor be entitled any interest in the Lands nor Area of Mutual Interest. The working interests of 858642 and Xxxxxxx in the Initial Well and spacing unit, before and after payout, shall at all times be subject to the 9.5% XXXX and government royalties.”
Initial Well. On or before April 30, 2010, Operator shall commence the drilling of a well for oil and gas at the following location: HPI Liberty #1 well, NE, NW, Section 34, T12S, R1E, Juab County, Utah (the “Liberty #1 Well), and shall continue the drilling of the well with due diligence to an approximate depth of 4,500’, unless granite, or other practically impenetrable substance or condition in the hole, which renders further drilling impractical, is encountered at a lesser depth, or unless all parties agree to complete or abandon the well at a lesser depth. Operator shall make reasonable tests of all formations encountered during drilling which give indication of containing Oil and Gas in quantities sufficient to test, unless this Agreement shall be limited in its application to a specific formation or formations in which event Operator shall be required to test only the formation or formations to which this Agreement may apply. If, in Operator’s judgment, the well will not produce Oil or Gas in paying quantities, and it wishes to plug and abandon the well as a dry hole, the provisions of Article VI.E.1. shall then apply.
