Common use of Prospects Clause in Contracts

Prospects. From time to time McMoRan will obtain information upon which it can determine and define a particular portion of the Program Area with sufficient specificity as to be identified as a Prospect. The term "Prospect" means a contiguous area which can reasonably be interpreted from geological and/or geophysical data as encompassing a geological structure, stratigraphic trap or other common geologic feature which makes its treatment as a single Prospect for oil and gas production purposes reasonable and some portion of which is considered prospective for commercial oil or gas production and is designated as such pursuant to this Article VIII. Based on such information, McMoRan shall from time to time designate an area as a Prospect of the Program. The size and configuration of a Prospect, as well as all details incident thereto, shall be determined by McMoRan. During the Program Term, McMoRan alone shall determine the time when an area is designated as a Prospect, whether or not Leasehold Interests have previously been acquired therein. After the Program Term and in accordance with Paragraph 8.2 hereof, any member of the McMoRan Group shall have the right to designate a Prospect which includes Leasehold Interests theretofore acquired through the Program. Without the prior consent of Participant, McMoRan shall not commit to the Program any Prospects which (1) McMoRan's economic analysis indicates will not have at least a before taxes rate of return of twenty-five (25) percent, or (2) the water depth for the first expected platform location is greater than 1,000 feet. At the time that McMoRan designates a Prospect it shall furnish to Participant a land plat showing the approximate outline of the Prospect and the proposed AMI therefor. Subject to Paragraph 5.2, McMoRan shall as soon as possible thereafter, upon written request of Participant, furnish Participant (to the extent not previously furnished) with all pertinent data then available with respect to the evaluation of such Prospect for oil or gas development excluding only such data as McMoRan is prohibited from disclosing by reason of confidentiality agreements with third parties respecting such data. Such data shall include a land and geophysical or geological report on such Prospect, including with respect to the drillsite for the first Exploratory Well proposed to be drilled thereon, a land plat, farmin, farmout and other trade agreements, copies of leases, drilling title opinions, assignments, unit designation agreements, operating agreements and other documents necessary for Participant to maintain adequate records relative to such Prospect and operations thereon, together with such of the following, as and when available, which are applicable to each such Prospect:

Prospects. From time to time McMoRan will obtain information upon which it can determine and define a particular portion of the Program Area with sufficient specificity as to be identified as a Prospect. The term "Prospect" means a contiguous area which can reasonably be interpreted from geological and/or geophysical data as encompassing a geological structure, stratigraphic trap or other common geologic feature which makes its treatment as a single Prospect for oil and gas production purposes reasonable and some portion of which is considered prospective for commercial oil or gas production and is designated as such pursuant to this Article VIII. Based on such information, McMoRan shall from time to time designate an area as a Prospect of the Program. The size and configuration of a Prospect, as well as all details incident thereto, shall be determined by McMoRan. During the Program Term, McMoRan alone shall determine the time when an area is designated as a Prospect, whether or not Leasehold Interests have previously been acquired therein. After the Program Term and in accordance with Paragraph 8.2 hereof, any member of the McMoRan Group or Participant shall have the right to designate a Prospect which includes Leasehold Interests theretofore acquired through the Program. Without the prior consent of Participant, McMoRan shall not commit to the Program any Prospects which (1) McMoRan's economic analysis indicates will not have at least a before taxes rate of return of twenty-twenty- five (25) percent, or (2) the water depth for the first expected platform location is greater than 1,000 feet. At the time that McMoRan designates a Prospect it shall furnish to Participant a land plat showing the approximate outline of the Prospect and the proposed AMI therefor. Subject to Paragraph 5.2, McMoRan shall as soon as possible thereafter, upon written request of Participant, furnish Participant (to the extent not previously furnished) with all pertinent data then available with respect to the evaluation of such Prospect for oil or gas development excluding only such data as McMoRan is prohibited from disclosing by reason of confidentiality agreements with third parties respecting such data. Such data shall include a land and geophysical or geological report on such Prospect, including with respect to the drillsite for the first Exploratory Well proposed to be drilled thereon, a land plat, farmin, farmout and other trade agreements, copies of leases, drilling title opinions, assignments, unit designation agreements, operating agreements and other documents necessary for Participant to maintain adequate records relative to such Prospect and operations thereon, together with such of the following, as and when available, which are applicable to each such Prospect:

Prospects. From time to time McMoRan will obtain information upon which it can determine and define a particular portion of the Program Area with sufficient specificity as to be identified as a Prospect. The term "Prospect" means a contiguous area which can reasonably be interpreted from geological and/or geophysical data as encompassing a geological structure, stratigraphic trap or other common geologic feature which makes its treatment as a single Prospect for oil and gas production purposes reasonable and some portion of which is considered prospective for commercial oil or gas production and is designated as such pursuant to this Article VIII. Based on such information, McMoRan shall from time to time designate an area as a Prospect of the Program. The size and configuration of a Prospect, as well as all details incident thereto, shall be determined by McMoRan. During the Program Term, McMoRan alone shall determine the time when an area is designated as a Prospect, whether or not Leasehold Interests have previously been acquired therein. After the Program Term and in accordance with Paragraph 8.2 hereof, any member of the McMoRan Group or Participant shall have the right to designate a Prospect which includes Leasehold Interests theretofore acquired through the Program. Without the prior consent of Participant, McMoRan shall not commit to the Program any Prospects which (1) McMoRan's economic analysis indicates will not have at least a before taxes rate of return of twenty-five (25) percent, or (2) the water depth for the first expected platform location is greater than 1,000 feet. At the time that McMoRan designates a Prospect it shall furnish to Participant a land plat showing the approximate outline of the Prospect and the proposed AMI therefor. Subject to Paragraph 5.2, McMoRan shall as soon as possible thereafter, upon written request of Participant, furnish Participant (to the extent not previously furnished) with all pertinent data then available with respect to the evaluation of such Prospect for oil or gas development excluding only such data as McMoRan is prohibited from disclosing by reason of confidentiality agreements with third parties respecting such data. Such data shall include a land and geophysical or geological report on such Prospect, including with respect to the drillsite for the first Exploratory Well proposed to be drilled thereon, a land plat, farmin, farmout and other trade agreements, copies of leases, drilling title opinions, assignments, unit designation agreements, operating agreements and other documents necessary for Participant to maintain adequate records relative to such Prospect and operations thereon, together with such of the following, as and when available, which are applicable to each such Prospect: