Common use of Test Well Clause in Contracts

Test Well. A. Subject to permitting, rig availability, and events of force majeure (as set out in Section 11), Foothills Petroleum Operating, Inc. (hereinafter referred to as “Operator”) shall use best efforts to commence, or cause to be commenced drilling operations for a Test Well on the Prospect on or before January 31, 2017 (“Contract Spud Date”), to the following bottom hole location: NE/4 of Section 5, T9S-R11W, Calcasieu Parish, Louisiana; XY coordinates: X = 1314375 and Y = 605000 NAD 27–Louisiana South. Failure by Participant to commence, or cause to be commenced, drilling operations for a Test Well on or before the Contract Spud Date despite Participant’s best efforts or as a result of an incident of Force Majeure shall not result in a termination of this Agreement or Participant’s rights and obligations hereunder. Said Test Well shall be drilled to the lesser depth of (i) a total vertical depth of 8,300 feet beneath the surface of the ground or (ii) a depth sufficient to test the stratigraphic equivalent of the Nodosaria blanpiedi sand, top of which is found at the measured depths of 8,490 feet (MD) on the electric log of the Labokay Corp 5 Well No. 1 (API No. 1701922252, Serial No. 242300), 17,000 feet total depth, located in Section 4, Xxxxxxxx 0X, Xxx 00X, Xxxxxxxxx Xxxxxx, Xxxxxxxxx (“Contract Depth”) and thereafter evaluated in accordance with good oil field practices, and depending on the outcome of said evaluation, Operator shall either plug and abandon the Test Well or make a recommendation for a completion attempt. Should Operator make a recommendation for a completion attempt and not recommend to plug and abandon the Test Well, it is agreed and understood that Participant shall pay to Seller the sum of One Hundred Eighty Thousand Dollars ($180,000.00) within thirty (30) days of the Casing Point Election as defined in the OA, which amount shall be considered and construed to be geological and geophysical costs. Prior to the commencement of drilling operations for the Test Well, Operator shall deliver to Seller an Authority for Expenditure (“AFE”) setting forth the estimated costs and expenses in connection with the drilling of the Test Well to Contract Depth (the “Estimated Dry Hole Costs”), which shall include a line item of Twenty-Five Thousand Dollars ($25,000.00) (“Spud Fee”). Seller agrees to pay the Spud Fee if and when it becomes payable under the Lxxxxx Seismic Agreement. Except as provided herein, all operations on the Test Well shall be conducted in accordance with the OA. The Test Well shall be the same well referred to in the OA as the Initial Well.

Test Well. A. Subject to permittingOn or before November 30, rig availability1999, and events subject to receipt of force majeure all necessary regulatory approvals (as set out in Section 11which Farmee agrees to pursue with reasonable commercial diligence), Foothills Petroleum OperatingFarmee, Inc. (hereinafter referred to as “Operator”) at its sole cost, risk and expense, shall use best efforts to commence, or cause to be commenced drilling the commencement of, operations for the drilling of a test well ("Test Well Well") at a location of Farmee's choice on the Prospect on or before January 31, 2017 Unit and thereafter diligently drill such well to a depth (“Contract Spud Date”), the "Objective Depth") equal to the following bottom hole location: NE/4 of Section 5, T9S-R11W, Calcasieu Parish, Louisiana; XY coordinates: X = 1314375 and Y = 605000 NAD 27–Louisiana South. Failure by Participant to commence, or cause to be commenced, drilling operations for a Test Well on or before the Contract Spud Date despite Participant’s best efforts or as a result of an incident of Force Majeure shall not result in a termination of this Agreement or Participant’s rights and obligations hereunder. Said Test Well shall be drilled to the lesser depth of (i) a total vertical depth of 8,300 feet beneath the surface of the ground or (ii) a depth sufficient to test the stratigraphic statigraphic equivalent of the Nodosaria blanpiedi sandPB-1 Sand as seen at a depth of -10,225' TVD Subsea in the Xxxxx Bank 1003 #1 Well, top or a depth of which -10,030' TVD Subsea, whichever is found at the measured depths of 8,490 feet (MD) on the electric log of the Labokay Corp 5 Well Nolesser. 1 (API No. 1701922252, Serial No. 242300), 17,000 feet total The Objective Depth shall be a minimum depth, located in Section 4and Farmee shall have the right, Xxxxxxxx 0Xbut not the obligation, Xxx 00X, Xxxxxxxxx Xxxxxx, Xxxxxxxxx (“Contract Depth”) and thereafter evaluated in accordance with good oil field practices, and depending on the outcome of said evaluation, Operator shall either plug and abandon to drill the Test Well or make a recommendation for a completion attemptto deeper depths. Should Operator make a recommendation for a completion attempt and not recommend In order to plug and abandon expedite the commencement of the Test Well, it is agreed and understood that Participant Farmor has or shall pay to Seller immediately make available for Farmee's use, Farmor's shallow hazard survey(s) over the sum of One Hundred Eighty Thousand Dollars ($180,000.00) within thirty (30) days of the Casing Point Election Farmout Acreage, as defined in the OA, which amount shall be considered and construed to be geological and geophysical costs. Prior well as any permitting information pertaining to the commencement of drilling operations for Farmout Acreage. In addition, Farmor shall allow Farmee access to its personnel to discuss the Test WellFarmout Acreage and any and all well data or information pertaining to the Farmout Acreage. In the event that a condition which qualifies as Force Majeure under Section 5.13, Operator shall deliver to Seller an Authority for Expenditure (“AFE”) setting forth the estimated costs and expenses in connection with below, prevents Farmee from commencing the drilling of the Test Well on or before November 30, 1999, then Farmee shall apply for and diligently pursue a further extension of the existing Suspension of Production ("SOP") from the MMS so as to Contract Depth (permit the “Estimated Dry Hole Costs”), which shall include a line item drilling of Twenty-Five Thousand Dollars ($25,000.00) (“Spud Fee”). Seller agrees to pay the Spud Fee if and when it becomes payable under the Lxxxxx Seismic Agreement. Except as provided herein, all operations on the Test Well at a later date. In the event Farmee does not commence the drilling of the Test Well on or before November 30, 1999, for any reason other than (i) the inability to obtain all necessary permits and regulatory approvals (which Farmee shall have diligently pursued) or (ii) a condition that qualifies as Force Majeure under Section 5.13, below, Farmee shall be conducted deemed to be in breach of its obligations hereunder, unless Farmee has applied for and been granted a further extension of the SOP from the MMS and drills, or causes to be drilled, the Test Well in accordance with the OA. The Test Well shall be the same well referred to in the OA as the Initial Wellsuch extension.

Test Well. A. Subject to permittingOn or before November 30, rig availability1999, and events subject to receipt of force majeure all necessary regulatory approvals (as set out in Section 11which Farmee agrees to pursue with reasonable commercial diligence), Foothills Petroleum OperatingFarmee, Inc. (hereinafter referred to as “Operator”) at its sole cost, risk and expense, shall use best efforts to commence, or cause to be commenced drilling the commencement of, operations for the drilling of a test well ("Test Well Well") at a location of Farmee's choice on the Prospect on or before January 31, 2017 Unit and thereafter diligently drill such well to a depth (“Contract Spud Date”), the "Objective Depth") equal to the following bottom hole location: NE/4 of Section 5, T9S-R11W, Calcasieu Parish, Louisiana; XY coordinates: X = 1314375 and Y = 605000 NAD 27–Louisiana South. Failure by Participant to commence, or cause to be commenced, drilling operations for a Test Well on or before the Contract Spud Date despite Participant’s best efforts or as a result of an incident of Force Majeure shall not result in a termination of this Agreement or Participant’s rights and obligations hereunder. Said Test Well shall be drilled to the lesser depth of (i) a total vertical depth of 8,300 feet beneath the surface of the ground or (ii) a depth sufficient to test the stratigraphic statigraphic equivalent of the Nodosaria blanpiedi sandPB-1 Sand as seen at a depth of -10,225' TVD Subsea in the Ewinx Xxxk 1003 #1 Well, top or a depth of which -10,030' TVD Subsea, whichever is found at the measured depths of 8,490 feet (MD) on the electric log of the Labokay Corp 5 Well Nolesser. 1 (API No. 1701922252, Serial No. 242300), 17,000 feet total The Objective Depth shall be a minimum depth, located in Section 4and Farmee shall have the right, Xxxxxxxx 0Xbut not the obligation, Xxx 00X, Xxxxxxxxx Xxxxxx, Xxxxxxxxx (“Contract Depth”) and thereafter evaluated in accordance with good oil field practices, and depending on the outcome of said evaluation, Operator shall either plug and abandon to drill the Test Well or make a recommendation for a completion attemptto deeper depths. Should Operator make a recommendation for a completion attempt and not recommend In order to plug and abandon expedite the commencement of the Test Well, it is agreed and understood that Participant Farmor has or shall pay to Seller immediately make available for Farmee's use, Farmor's shallow hazard survey(s) over the sum of One Hundred Eighty Thousand Dollars ($180,000.00) within thirty (30) days of the Casing Point Election Farmout Acreage, as defined in the OA, which amount shall be considered and construed to be geological and geophysical costs. Prior well as any permitting information pertaining to the commencement of drilling operations for Farmout Acreage. In addition, Farmor shall allow Farmee access to its personnel to discuss the Test WellFarmout Acreage and any and all well data or information pertaining to the Farmout Acreage. In the event that a condition which qualifies as Force Majeure under Section 5.13, Operator shall deliver to Seller an Authority for Expenditure (“AFE”) setting forth the estimated costs and expenses in connection with below, prevents Farmee from commencing the drilling of the Test Well on or before November 30, 1999, then Farmee shall apply for and diligently pursue a further extension of the existing Suspension of Production ("SOP") from the MMS so as to Contract Depth (permit the “Estimated Dry Hole Costs”), which shall include a line item drilling of Twenty-Five Thousand Dollars ($25,000.00) (“Spud Fee”). Seller agrees to pay the Spud Fee if and when it becomes payable under the Lxxxxx Seismic Agreement. Except as provided herein, all operations on the Test Well at a later date. In the event Farmee does not commence the drilling of the Test Well on or before November 30, 1999, for any reason other than (i) the inability to obtain all necessary permits and regulatory approvals (which Farmee shall have diligently pursued) or (ii) a condition that qualifies as Force Majeure under Section 5.13, below, Farmee shall be conducted deemed to be in breach of its obligations hereunder, unless Farmee has applied for and been granted a further extension of the SOP from the MMS and drills, or causes to be drilled, the Test Well in accordance with the OA. The Test Well shall be the same well referred to in the OA as the Initial Wellsuch extension.

Test Well. A. Subject Farmees shall commence or caused to permittingbe commenced, on or before forty-five (45) days from the Effective Date, or, in the event a suitable rig availabilityis under contract but cannot commence drilling until after the expiration of such 45 day period, and events of force majeure as soon as commercially practicable thereafter (as set out but in Section 11no event longer than 90 days) (the “Commencement Date”), Foothills Petroleum Operating, Inc. actual drilling operations on a well (hereinafter referred to as the “OperatorTest Well”) in search of oil and/or gas at any legal location on the Subject Interests/at the location specified on Exhibit A hereto. Thereafter, Farmees shall use best efforts continue to drill the Test Well with due diligence and in a good and workmanlike manner to a depth sufficient to penetrate and test in a horizontal wellbore the Woodbine formation (the “Objective Depth”); provided that Farmees shall not be precluded from drilling deeper than the Objective Depth. When Farmees have completed drilling operations on the Test Well, Farmees agree that (i) if the Test Well can be completed as a well capable of producing in paying quantities, to be determined at Farmees’ sole discretion, Farmees shall diligently prosecute the completion of the Test Well without unreasonable delays, or (ii) if the Test Well cannot be completed as a well capable of producing in paying quantities, Farmees shall plug and abandon the Test Well in accordance with the terms of the Subject Leases and all applicable laws and regulations. If Farmees do not commence, or cause to be commenced commenced, the actual drilling operations for a of the Test Well on the Prospect on or before January 31, 2017 (“Contract Spud Date”), prior to the following bottom hole location: NE/4 of Commencement Date, Farmees’ right to earn the Assignment hereunder shall terminate and, except as otherwise expressly provided herein, neither Party shall have any further rights or obligations hereunder. As set forth in Section 5IV, T9S-R11Whereinbelow, Calcasieu ParishRichland shall be designated as “Operator” for operations conducted on the Subject Leases. Notwithstanding such designation, Louisiana; XY coordinates: X = 1314375 and Y = 605000 NAD 27–Louisiana South. Failure by Participant any Farmee shall be entitled to commence, or cause to be commenced, actual drilling operations for a Test Well on or before the Contract Spud Date despite Participant’s best efforts or as a result of an incident of Force Majeure shall not result in a termination of this Agreement or Participant’s rights and obligations hereunder. Said Test Well shall be drilled to the lesser depth of (i) a total vertical depth of 8,300 feet beneath the surface of the ground or (ii) a depth sufficient to test the stratigraphic equivalent of the Nodosaria blanpiedi sand, top of which is found at the measured depths of 8,490 feet (MD) on the electric log of the Labokay Corp 5 Well No. 1 (API No. 1701922252, Serial No. 242300), 17,000 feet total depth, located in Section 4, Xxxxxxxx 0X, Xxx 00X, Xxxxxxxxx Xxxxxx, Xxxxxxxxx (“Contract Depth”) and thereafter evaluated in accordance with good oil field practices, and depending on the outcome of said evaluation, Operator shall either plug and abandon the Test Well or make a recommendation for a completion attempt. Should Operator make a recommendation for a completion attempt and not recommend to plug and abandon the Test Well, it is agreed and understood that Participant shall pay to Seller the sum of One Hundred Eighty Thousand Dollars ($180,000.00) within thirty (30) days of the Casing Point Election as defined in the OA, which amount shall be considered and construed to be geological and geophysical costs. Prior to the commencement of drilling operations for the Test Well, Operator shall deliver to Seller an Authority for Expenditure (“AFE”) setting forth the estimated costs and expenses in connection with the drilling of the Test Well to Contract Depth (the “Estimated Dry Hole Costs”), which shall include a line item of Twenty-Five Thousand Dollars ($25,000.00) (“Spud Fee”). Seller agrees to pay the Spud Fee if and when it becomes payable under the Lxxxxx Seismic Agreement. Except as provided herein, all operations on the Test Well shall if, in Farmee’s sole discretion based on good-faith belief, Richland is unable or will be conducted in accordance with unable to commence or cause to be commenced actual drilling operations on the OA. The Test Well shall be before the same well referred to in the OA as the Initial WellCommencement Date.

Test Well. A. Subject to permittingOn or before August 14, rig availability, and events of force majeure 2005 (as set out in Section 11"Commencement Date"), Foothills Petroleum Operating, Inc. (hereinafter referred to as “Operator”) shall use best efforts to commence, KMG will commence or cause to be commenced drilling operations for the drilling of a test well ("Test Well") in search of oil and/or gas at a location of Xxxx-XxXxx'x choice on the Leases. The Test Well on the Prospect on or before January 31, 2017 (“Contract Spud Date”), to the following bottom hole location: NE/4 of Section 5, T9S-R11W, Calcasieu Parish, Louisiana; XY coordinates: X = 1314375 will be drilled with due diligence and Y = 605000 NAD 27–Louisiana South. Failure by Participant to commence, or cause to be commenced, drilling operations for a Test Well on or before the Contract Spud Date despite Participant’s best efforts or as a result of an incident of Force Majeure shall not result in a termination of this Agreement or Participant’s rights good and obligations hereunder. Said Test Well shall be drilled workmanlike manner to the lesser depth of (i) a total vertical depth of 8,300 feet beneath the surface of the ground or (ii) a depth sufficient to test the stratigraphic equivalent of Tex Miss formation as seen in the Nodosaria blanpiedi sand, top of which is found at Induction/Density-Neutron log for the measured Xxxxx XxxXxxxxx No. 9 Well between the depths of 8,490 feet 10,568 and 10,612 (MDTVD) on the electric log of the Labokay Corp 5 Well No. 1 (API No. 1701922252, Serial No. 242300), 17,000 feet total depth, located in Section 493, X-000, Xxxxxxxx 0X, Xxx 00X, Xxxxxxxxx Xxxxxx, Xxxxxxxxx Texas, or to a depth of 11,500' (“Contract TVD) beneath the surface of the earth, whichever is the lesser depth (the "Objective Depth”"), unless "Impenetrable Conditions", as that term is hereinafter defined, are encountered prior to reaching the Objective Depth. The term "Impenetrable Conditions" as used in this Agreement shall mean formations, conditions (such as heaving shale) and thereafter evaluated or mechanical problems that would render further drilling operations by a prudent operator uneconomical or impracticable. To the extent not in accordance conflict with good oil field practicesthe terms of this Agreement, the Parties agree to be bound by, and depending on the outcome of said evaluation, Operator shall either plug and abandon the Test Well or make a recommendation for a completion attempt. Should Operator make a recommendation for a completion attempt and not recommend to plug and abandon the Test Well, it is agreed and understood that Participant shall pay to Seller the sum of One Hundred Eighty Thousand Dollars ($180,000.00) within thirty (30) days of the Casing Point Election as defined in the OA, which amount shall be considered and construed to be geological and geophysical costs. Prior to the commencement of drilling operations for the Test Well, Operator shall deliver to Seller an Authority for Expenditure (“AFE”) setting forth the estimated costs and expenses in connection with the drilling of the Test Well to Contract Depth (the “Estimated Dry Hole Costs”), which shall include a line item of Twenty-Five Thousand Dollars ($25,000.00) (“Spud Fee”). Seller agrees to pay the Spud Fee if and when it becomes payable under the Lxxxxx Seismic Agreement. Except as provided herein, all operations on the Test Well shall be conducted governed by, the terms and provisions of the Operating Agreement attached hereto and made a part hereof as Exhibit "B" ("JOA"). Upon reaching the Objective Depth, Xxxx-XxXxx shall cause such logs and tests to be made as it deems prudent under the circumstances. During the drilling of the Test Well, Participant's representatives shall be allowed access to the xxxxxxx floor of the Test Well at their sole risk and expense, provided they are and remain in compliance with Xxxx-XxXxx'x environmental, health and safety standards. Prior to running any logging device, coring, conducting any formation test(s), or conducting any other similar type test(s), Xxxx-XxXxx will first give Participant notice in sufficient time to allow its representatives to be present to witness the event. Xxxx-XxXxx will furnish Participant all data relative to the drilling well(s) in accordance with Participant's well requirement information. Any notice required hereunder to be given to Participant shall be sent to the OAaddress, telephone, email, or fax numbers, as the case may be, set forth in Section 7 below. The If Impenetrable Conditions are encountered prior to reaching the Objective Depth, Xxxx-XxXxx shall have the option of attempting to complete the well as a commercial producer of oil and/or gas at a lesser depth if it appears that a completion attempt is warranted, or, if in Xxxx-XxXxx'x opinion a completion attempt at a lesser depth is not warranted, then, subject to the provisions of the immediately following sentence, Xxxx-XxXxx may plug and abandon the Test Well, the costs of which shall be borne 65% by Xxxx-XxXxx and 35% by Participant. Participant shall have twenty-four (24) hours after notice from Xxxx-XxXxx stating that it has determined the Test Well should be plugged and abandoned in which to elect to take over the Test Well and become solely responsible for any and all costs and expenses associated with any future operations on the well, including plugging and abandoning the well. Failure of Participant to respond within such period of time shall be deemed a response by Participant to elect to plug and abandon the same well referred to well. If Impenetrable Conditions are encountered in the OA as Test Well prior to reaching the Initial Well.Objective Depth and: