Common use of Undrilled Xxxxx Clause in Contracts

Undrilled Xxxxx. (a) If a Well is proposed in the PQDP, but is not drilled during the relevant calendar quarter (an “Undrilled Well”), such Undrilled Well shall not be drilled pursuant to the PQDP as originally proposed. Such Undrilled Well may be added to a subsequent PQDP, and it will be subject to the approval and other procedures provided in Section 3.1, above. It is expressly agreed and understood that (i) no more than twenty percent (20%) of the total number of Xxxxx proposed in a PQDP can be carried over and added to the Xxxxx to be drilled in the subsequent Well Proposal Period and (ii) in any event no fewer than one hundred (100) gross xxxxx will be drilled in any four calendar quarter period. (b) If Vanguard has advanced funds to Vinland for an Undrilled Well, Vinland will return such funds to Vanguard within five (5) Business Days after the end of the relevant calendar quarter with interest at the Prime Rate designated as such from time to time by Citibank, N.A. from the date such funds were advanced by Vanguard to the date of repayment by Vinland. (c) For purposes of this Section 3.4, a Well shall be deemed to be drilled within a calendar quarter if it has been spudded prior to 11:59 p.m. on the last day of the calendar quarter.