Common use of Test Well Clause in Contracts

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.