Test Well. 3.1 Newfield will commence drilling operations for the [REDACTED] No. 1 Well (“Test Well”) on or before December 1, 2008. The Test Well is planned to be drilled in accordance with Newfield’s AFE No. 16964 attached hereto as Exhibit “B” (“AFE”). The Test Well will be drilled to an approximate depth of 17,254’ MD 17,000 TVD, or a depth sufficient to test the “Cib Op Sands”, whichever depth is shallower (“Contract Depth”).
3.2 As additional consideration for the opportunity to earn its Working Interest in the Contract Area, the Parties will pay the following percentages of the costs to drill the Test Well to Casing Point (as described in Article 3.3 below): Newfield 40.00000% Ridgewood 60.00000% The dry hole well cost for the Test Well is estimated to be $30,227,466.00 (“Dry Hole Cost”) as outlined on the above referenced drilling AFE. Ridgewood’s disproportionate cost sharing will cease once cumulative costs and expenses for the Test Well, and if drilled, the substitute well therefore, exceeds 110% of $23,500,000.00 as outlined in Letter Agreement dated February 12, 2008 or upon reaching Casing Point, whichever occurs first. Thereafter Newfield will bear its 60% and Ridgewood will bear its 40% share of subsequent costs, subject to the non-consent rights set out in the Operating Agreement. Additionally, within 10 days prior to spud, but no earlier, Newfield shall invoice Ridgewood and Ridgewood shall timely pay its proportionate share of lease sunk costs equal to $1,611,560.00 ($4,028,900.00 x 40.00% Working Interest).
3.3 Casing Point is defined as that point in time when the Test Well, or substitute well therefor, has been drilled to the Contract Depth, and all open-hole logs and all appropriate tests have been performed and delivered to the Parties, and a recommendation is made to (i) set casing and complete the well, (ii) plug and abandon the well or (iii) conduct other operations as provided within the priority of operations outlined within the Operating Agreement.
3.4 If the Test Well is either, i) unable to reach the Contract Depth due to encountering domal material, heaving shale, saltwater, salt or other impenetrable substance, or suffers any adverse condition (mechanical, structural, stratigraphic or otherwise) in drilling said well, which substance or condition cannot be overcome at a reasonable cost by means considered customary or ordinary in the industry; or, ii) plugged and abandoned as a dry hole, then any Party shall have the right to propose...
Test Well. 3.1 On or before March 31, 2009 or a date mutually agreed to by the parties and subject to Force Majeure (as such term is defined hereafter), Newfield will commence, or cause to be commenced, drilling operations on (a) [REDACTED (“Redacted Test Well”), (b) [REDACTED (“Redacted Test Well”), and (c) [REDACTED] (“Redacted Test Well”) (the Redacted Test Well, the Redacted Test Well, and the Redacted Test Well are sometimes individually referred to as the “Test Well”) or collectively referred to as the “Test Xxxxx”). Each Test Well shall be drilled to the total depth listed in the Authority for Expenditure (“AFE”) for such Test Well, or a depth sufficient to test the stratigraphic equivalent of the formation listed in AFE for such Test Well, whichever is lesser (“Objective Depth”).
3.2(a) Newfield shall furnish to Ridgewood an AFE for the drilling and evaluation costs (“Dry Hole Cost”) of a Test Well at least 30 days prior to the commencement of actual drilling operations for such Test Well. The AFE for each Test Well is estimated to be as follows: $19,400,000.00 for the Redacted Test Well; and, $9,400,000.00 for the Redacted Test Well; and, $14,700,000.00 for the Redacted Test Well.
Test Well. 4.1 On or before the expiration of the Term of this Agreement subject, however, to rig availability and obtaining requisite governmental permits, COI shall commence, or cause to be commenced, the drilling of the Test Well, at a location on the Leases mutually acceptable to the Parties, and shall prosecute same in a diligent and workmanlike manner to the Objective Depth. In the event the Test Well does not reach the Objective Depth due to encountering impenetrable substances or mechanical conditions beyond COI’s reasonable control, the Parties shall have the option, but not the obligation, to commence the drilling of a substitute well at a mutually acceptable location on the Leases. Any such substitute well drilled hereunder shall, upon its commencement, thereafter be deemed the Test Well. In the event COI does not drill the Test Well during the Term of this Agreement, COI shall assign 100% of its interest in the Stone FO Agreement to XXX within 15 days of the expiration of the Term. XXX shall then be under no further obligations to COI with regard to South Timbalier Area Block 75 and therefore free to drill or cause to be drilled REX’s prospect(s) on South Timbalier Area Block 75
4.2 With respect to the drilling of the Test Well, XXX shall be entitled to an undivided 10% of 100%, being 10%, working interest (including record title and operating rights) free and clear of all costs and expenses associated with the Test Well until Post-Casing Point (such undivided 10% interest until Post-Casing Point is referred to hereafter as the “Carried Interest”). COI, as Operator, will bear all costs and expenses attributable to such Carried Interest prior to Post-Casing Point, together with all costs and expenses pertaining to the Test Well attributable to the remaining undivided 90% working interest, subject, however, to the provisions of Section 4.3 below.
4.3 COI, as Operator, shall notify XXX once Casing Point has been reached with respect to the Test Well and within forty-eight (48) hours, inclusive of Saturdays, Sundays and federal holidays, of receipt of COI’s Casing Point notification, XXX xxx elect to either (a) increase its interest in the Leases, and the Test Well, by an additional undivided 10% of 100%, being 10%, working interest (in addition to its Carried Interest), free and clear of all costs and expenses attributable to the Test Well prior to Casing Point, or (b) retain its undivided 10% of 100% Carried Interest. If at Casing Point, COI, pursuant to th...
Test Well. (a) Subject to the results of the 3D Seismic Date Program and Momentus’ interpretation of such processed data, Momentus shall have the option to elect, in its sole discretion, to drill a Test Well. Momentus shall drill the Test Well pursuant to the terms of the Amended JOA (as hereinafter defined). Momentus shall notify Farmors on or before the Option Date in writing of its election to drill a Test Well. The notification shall include the location that the Test Well will be drilled, which shall be on the Seismic Data Lands and will provide that the well bore and bottom hole location shall be located entirely within the Seismic Data Lands. Momentus shall thereafter prosecute the drilling of the Test Well diligently, without unnecessary delay and in a workmanlike manner horizontally to a minimum lateral length of four thousand and nine hundred feet (4,900') within the Xxxxxx Formation as defined as the stratigraphic equivalent found at a measured depth of 9,418 to 9,440 feet TVD in the Australia II 12 KA 6 well located in the NW4NW4 of Section 29, T28N-R55E, in Roosevelt County, Montana (the "Contract Depth''). The Test Well shall be designed in a manner to allow evaluation of the Xxxxxx Formation. Momentus shall use its commercially reasonable efforts to commence or cause to be commenced the actual drilling of a Test Well within ninety (90) days following the Option Date (the “Spud Date”), subject to the availability of a drilling rig capable of drilling to the Contract Depth, surface conditions of the access road and well pad location, and the receipt of the following necessary regulatory approvals:
(i) An Application for Drilling Permit approved by the BLM, the BIA, and the MBOGC;
(ii) A surface use agreement with the surface owners for the access road and well pad location; and
(iii) Any necessary Montana or Tribal road access permits for the movement or hauling of equipment exceeding the normal load rating for the access roads to the well pad location. If Momentus cannot commence drilling of the Test Well within ninety (90) days following the Option Date as a result of a delay caused by any of the foregoing or as a result of an event of Force Majeure, the Spud Date shall be extended for a reasonable period thereafter for so long as it takes Momentus to resolve such matters causing the delay.
(b) Momentus shall notify Farmors of the spudding of the Test Well. After drilling has commenced and until the Test Well has been completed or plugged and abandoned...
Test Well. For the purposes of this Agreement, the Test Well shall be defined as the initial well drilled on the North Franklin Prospect under the terms of this Agreement. Operator shall notify each Participant of the projected spud date of the Test Well not more than thirty (30) days prior to that date. Each Participant shall, not later than ten (10) days following receipt of said notice, advance its Participation Share of one hundred percent (100%) of said Test Well’s estimated AFE drilling costs to Operator. Operator shall promptly commence and diligently continue with the actual drilling of the proposed Test Well after the receipt of all the Test Well’s drilling costs. In the event any Participant fails to so advance the drilling funds for the Test Well, Xxxxxx may, at its option, terminate this Agreement in its entirety as to that Participant by delivering to such Participant a written notice of termination. In the event this Agreement is so terminated, said Participant shall forfeit all funds previously paid to Xxxxxx and have no rights or obligations under this Agreement, except any obligations accruing prior to such termination.
Test Well. Farmee shall, on or before March 15, 2005, subject to surface access, regulatory approvals and rig availability, commence drilling a well (hereinafter referred to as the “Test Well”) at a location of its choice on the Farmout Lands and shall continuously and diligently drill the Test Well to Contract Depth and complete, cap or abandon same at its sole cost, risk and expense. Farmee shall conduct all operations hereunder in accordance with good oilfield practices and in strict compliance with the terms of the Title Documents, this Agreement and the Regulations.
Test Well. (a) On or before June 1, 2012 Farmee shall, subject to rig availability, surface accessibility and regulatory approval and in accordance with Article 3.00 of the Farmout & Royalty Procedure, spud the Test Well at I 02/05-29-033-02W4/00 on the Farmout Lands and continuously drill down to Contract Depth. Farmee shall while drilling to Contract Depth cut two full bore cores one each from the Viking and Xxxxxx formations. Farmee shall also run a DST in the Viking formation. In the event that hydrocarbons are noted in the core and geological cuttings in the Xxxxxx, a DST will then be run in the Xxxxxx. A decision will be mutually reached between the parties whether or not to continue with drilling a lateral in the Xxxxxx section. If the Xxxxxx formation proves non-productive or uneconomic, Farmee shall cut a window to enable for the drilling of a lateral into the Viking formation. In either event, the proposed lateral would be drilled to a minimum of 1,000 meters to a maximum of 1,200 meters of horizontal length. In either event, the total measured depth of the Test Well shall be 1,950 meters for the Test Well. Fannee shall complete the Test Well in the Xxxxxx or Viking formation within the Farmout Lands prospective of containing petroleum and natural gas and equip or abandon same.
(b) Farmor shall be provided with all well information pertaining to the Test Well on a current and confidential basis, as outlined in Clause 9.00 of the Farmout & Royalty Procedure. All risks and expenses associated with the Test Well shall be borne solely by Fannee 100%, and the Farmor shall be entirely free of any such costs, risk and expense.
Test Well. On or before April 30, 2008, El Paso, as "Operator", will commence, or cause to be commenced, drilling operations on the Test Well, the estimated cost of which is described in the Authorization for Expenditure ("AFE") attached as Exhibit "A" and thereafter continuously prosecute the drilling of the Test Well in a good and workmanlike manner to Casing Point. "Casing Point" shall mean that point in time when the well has reached its Objective Depth, or such other depth as may be mutually agreed by the Parties, and all logs, cores and other tests have been completed that in the opinion of the Operator are sufficient to make a determination concerning the running of production casing or the plugging and abandonment of the well, and the results thereof have been furnished to the Participants together with Operator's recommendation. The Test Well will be drilled as a vertical well from a surface location that is approximately 2,195 feet from the North line and 4,690 feet from the West line of South Marsh Island Area Block 213 to (i) 16,500 feet TVD (16,500 feet MD) xx (xi) a depth sufficient to test the Rob L section, as seen on the Array Induction-GR log of the McMoRan Xxxxx Marsh Island 217 #223 Well between the depths of 13,900' and 16,100' XX, whichever is the lesser depth (the "Objective Depth"). Participation Agreement (State Lease 19499)
Test Well a) As between the parties comprising Farmee, all operations with respect to the Test Well shall be subject to the provisions of the Operating Procedure as amended by the Head Agreement. Damascus shall be appointed initial Operator. If the Farmee elects to drill the Test Well pursuant to clause 4, it shall spud the Test Well at a mutually agreeable location on the Farmout Lands within 90 days of making such election and shall then diligently and continuously drill the Test Well to Contract Depth at its sole cost. In the event surface access to the drill site cannot be reasonably obtained by the required date because of surface conditions, weather conditions, rig availability or regulatory approval, Farmee shall, before the required date, advise Farmor in writing, of the reasons why access cannot be obtained. Farmor shall, thereupon, grant an extension to the commencement date which shall be reasonable under the circumstances. If production of petroleum substances in paying quantities is indicated, Farmee shall equip the Test Well and thereafter use its best efforts to produce and dispose of the said substances.
b) Farmee shall be solely responsible for the costs to drill, complete, evaluate, equip and tie in or abandon the Test Well.
c) Subject to Article 3.00 of the Farmout & Royalty Procedure, the Farmee will earn the following interests in the Farmout Lands after complying with the provisions of this clause:
(i) a 100% Working Interest in the Farmout Lands, subject to the Farmee’s Overriding Royalty reserved in Article 5.00 of the Farmout and Royalty Procedure which overriding royalty shall be convertible to a 45% Working Interest after Payout.
d) 50% of the cost of the Seismic Program shall be added to the Payout account for the Test Well.
Test Well. 3.1 Farmee shall, at its sole cost, risk and expense, and subject to having obtained a rig, all necessary surface access and Regulatory approvals, Spud the Test Well at a location of its choice on the Farmout Lands on or before 150 days following the execution hereof and drill the Test Well to Contract Depth.
3.2 Subject to Article 3.00 of the Farmout & Royalty Procedure and Article 20 of this Agreement, Farmee will earn 50% of Farmor’s Pre-Farmout Working Interest in the section of land on which the Test Well is situated together with 50% of the Farmor’s Pre-Farmout Working Interest in 5 additional sections of the Farmout Lands which are selected by Farmee not later than 90 days following the completion or abandonment, as applicable, of the Test Well.
