ITW Drilling Costs Clause Samples

ITW Drilling Costs. RIDGEWOOD shall bear and pay thirty percent (30.0%) of the actual costs to drill and test the ITW to Casing Point ; however, if prior to reaching Casing Point the actual aggregate cost of the ITW, and any Substitute Well therefor, exceeds one hundred percent (100%) of the dry hole cost estimate provided for in the Approved AFE (“ Promote Cap”), RIDGEWOOD shall bear and pay fifteen percent (15%) of the actual costs to drill and test the ITW thereafter. Casing Point shall be defined as that point in time when the ITW (or Substitute Well therefor) has reached its Objective Depth and all open hole logs and tests have been conducted in accordance with the Approved AFE. If RIDGEWOOD elects to participate in a Substitute Well, any cost to drill the ITW will be carried over to the Substitute Well to calculate the Promote Cap for purposes of determining when RIDGEWOOD’s cost-bearing interest reduces to fifteen percent (15%). Subject to the terms and conditions of this Agreement, all operations in the ITW subsequent to Casing Point, shall be conducted in accordance with the terms and provisions of the Operating Agreement and, subject to participation elections, shall be shared 15% by RIDGEWOOD and 85% by NEWFIELD et al, its co-owner, and their successors and assigns.