Test Xxxxx. ELM RIDGE and PROVIDENCE agree to drill and test, or cause to be drilled and tested, and if warranted, complete and equip two (2) xxxxx at mutually agreeable locations on the Leases to test the Xxxxxxxxxxx Formation, unless granite or other practically impenetrable substance or condition in the hole, which renders further drilling impracticable, is encountered at a lesser depth, or unless all parties agree to complete or abandon the well at a lesser depth. These test xxxxx will be drilled in accordance with those terms governing drilling of the initial well(s) found in Article VI of the Joint Operating Agreement (“JOA”) described in Article Nine (9) below, with the first of such xxxxx to be commenced on or before October 1, 2008. ELM RIDGE and PROVIDENCE each agree to pay 50% of the total costs to drill and complete (or plug and abandon) each such test well; provided however, as additional consideration for the purchase of the Subject Properties, ELM RIDGE agrees to carry PROVIDENCE for $1,000,000.00 of its proportionate share of total well costs in each of the two (2) test xxxxx referenced herein (a total of $2,000,000.00 for both xxxxx). Providence agrees to pay the balance of its share of the total costs of each test well remaining unpaid after being credited with the $1,000,000.00 ELM RIDGE carry obligation in each test well.
Test Xxxxx. The first Obligatory Well drilled on a Drilling Unit shall be drilled at a mutually agreeable location and to a depth (“Contract Depth”) mutually agreed to by the Parties in a bona fide attempt to establish production of oil or gas in paying quantities or if said Obligatory Well is a dry hole, to plug and abandon it in accordance with applicable governmental rules and regulations and restore the surface location. If Xxxxxxx is required to determine whether or not the Contract Depth has been sufficiently tested, Xxxxxxx shall consider all comments and information timely provided by Providence and any decision shall be made jointly by Xxxxxxx and Providence based on industry practices as utilized by a reasonably prudent operator and the applicable provisions in the Operating Agreement.
Test Xxxxx a) Farmee shall spud 2 test xxxxx (collectively the “Test Xxxxx”; individually the “Test Well”), at locations to be selected by the Farmor on the Farmout Lands, as soon as reasonably practicable but no later than October 1, 2007. Farmee shall then diligently and continuously drill each of the Test Xxxxx to Contract Depth at its sole cost, as specified below. 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, there shall be an extension to the commencement date which shall be reasonable under the circumstances. For each of the Test Xxxxx, if production of petroleum substances in paying quantities is indicated, the Farmee shall equip this Test Well and thereafter use its best efforts to produce and dispose of the said substances.
b) The Farmee shall be solely responsible for the costs to drill, complete, evaluate, equip and tie in or abandon each of the Test Xxxxx.
c) Upon the requirements for the Test Xxxxx as set out above and in Article 3.00 of the Farmout and Royalty Procedure being fulfilled, the Farmee will earn the following interest in the Farmout Lands, to the base of the deepest formation penetrated and fully logged in the Test Well:
(i) 100% of Farmor’s 100% Working Interest in the Farmout Lands, subject to the Farmor’s Overriding Royalty reserved in Article 5.00 of the Farmout and Royalty Procedure which Overriding Royalty would be convertible to a 50% Working Interest after Payout.
d) If it is only possible to obtain regulatory approval to drill one of the Test Xxxxx, the Farmee shall not be required to spud, drill and fulfill its other obligations with respect to the other Test Well, and upon fulfilling these requirements as set out above with regard to one Test Well, the Farmee shall earn that interest in the Farmout Lands specified in sub-clause 4(c) above.
Test Xxxxx. A. Participant agrees to participate in the drilling of the initial Test Well. “Test Well” means the first well that is proposed and drilled in the Prospect. The Test Well shall be drilled to a depth of 10800’ (Measured Depth).
Test Xxxxx. The College shall monitor the test xxxxx for safety reasons and shall make sure that at all times, the xxxxx’ lids are secured and safe and said lids shall be marked as “TEST WELL”.
Test Xxxxx. On or before April 30, 2003, Farmee shall spud the following three Test Xxxxx: 00-00-00-00 W4M 103/00-00-00-00 W4M 1-1-20-20 W4M Farmee shall participate (as to a 70% working interest) in the drilling, casing and completion of each of the three Test Xxxxx.
Test Xxxxx. (a) On or before May 31st, 2002, on behalf of itself and the farmee, Olympic shall participate in the drilling of the following two Test Xxxxx on the terms set out in the Operating Agreement:: Test Well Objective Xxxxx Xxxxxxx Xxxx #0-00 (Xxxxxxx 00 - X00X - X0X) 5,300 feet Xxxxx #0-0 (Xxxxxxx 0 - X00X - X0X) 3,000 feet Subsequent to the drilling of the Test Xxxxx as stated above but no later than December 31, 2003 Olympic shall on behalf of itself and the farmee participate in the drilling of the Test Xxxxx set forth below on the terms set out in the Operating Agreement: objective depths: Test Well Objective Depth Great Xxxxxxx #0-00 (Xxxxxxx 00 - X00X - X0X ) 5,300 feet Xxxxxxxx #0-0 (Xxxxxxx 0 - X00X - X0X) 3,000 feet Xxxxx #0-0 (Xxxxxxx 0 - X00X -X0X) 3,000 feet Strange Brew #1-30 (Section 30-T24N-R2W) 5,600 feet
(b) The parties acknowledge that the order, location and objective depth of the Test Xxxxx described above may change from time to time and that it is the intention of the parties that the farmee has the option to participate in the first 6 xxxxx drilled after the date hereof on the Farmout Lands and to thereby earn an interest in such xxxxx and all of the Farmout Lands in accordance with the terms of this Agreement. Notwithstanding the foregoing, if there is any change in the location or objective depth of any Test Well (and for purposes of this clause if a well not contemplated by the above 6 well program is proposed to be drilled on the Farmout Lands before all of the above 6 Test Xxxxx have been proposed or drilled, the proposal of that well shall constitute a change in the location and/or objective depth of the next Test Well to be drilled pursuant to this Agreement), such that the farmee's estimated costs for that Test Well up to but not including casing exceed $80,000.00 (Cdn), the farmee shall have the right to elect not to participate in that Test Well but shall nonetheless retain the right to participate in any subsequent Test Well and to earn an interest in the Balance of the Farmout Lands in accordance with the terms of this Agreement. Nothing herein shall require the farmee to participate in more than 6 xxxxx to earn an interest in the Balance of the Farmout Lands.
(c) If the drilling of any Test Well becomes impractical, Olympic shall immediately provide notice to the farmee and shall as soon as reasonably possible propose a substitute well. All rights and obligations under this Agreement shall apply to the substitute well.
Test Xxxxx. Synergy's original interest in the Pre-Owned Leases cover 8,086 gross acres and 8,011 Net Mineral Acres.
Test Xxxxx. Drilling and completion operations on the first well (or substitute therefore) commenced on each separate Prospect Area which two or more of the Parties have elected to acquire in accordance with this Agreement, will be conducted in accordance with the JOA executed in connection therewith, including without limitation, the non-consent penalty provisions. Such provisions provide, in part, that Parties electing, or deemed to elect, not to participate in the drilling of an initial test well (or substitute therefore), will release, relinquish and forfeit all right, title and interest in and to such Prospect Area; provided, however, in the case of ZaZa as the non-participant, the Reserved Overriding Royalty Interest and the After Payout Working Interest will remain applicable to such Prospect Area.
Test Xxxxx. On or before September 30, 2016, subject to surface access, rig availability, regulatory approval and completion of a spacing unit through pooling or otherwise, Farmee shall, at its sole cost, risk and expense. spud one (l) Test Well at a location of its choice on the Farmout Lands and thereafter diligently and continuously drill such Test Well and complete, cap or abandon such well pursuant to the Farmout & Royalty Procedure as the case may be. Farmee shall provide a Drilling Notice to Farmor at least seven (7) days prior to the spudding of such Test Well.
