Well Proposals Clause Samples

Well Proposals. 7.1 Each Party shall have the right to propose ▇▇▇▇▇ within the Program Area. The well proposal shall be communicated in writing, and shall contain at a minimum the following information: a) A plat outlining the proposed well and the Drilling and Spacing Unit. b) AFE inclusive of Drilling Costs and Completion Costs; and c) Drilling and completion prognosis. 7.2 The non-proposing Party shall have thirty (30) days from receipt of the written proposal to make its election pursuant to the Operating Agreement. Failure to timely respond shall be deemed an election to go non-consent by the non-proposing Party. If either Party elects, or is deemed to have elected, not to participate in the drilling of the proposed well and if the proposing Party timely commences operations within the time specified in Sub-Article 8.1 hereof and drills such well to the depth specified in the proposal for such well, the Non- Participating Party shall be deemed to have forfeited and relinquished all right, title and interest as to the first test well drilled within each Drilling and Spacing Unit (“Exploratory Well”). For ▇▇▇▇▇ that are not Exploratory ▇▇▇▇▇ (“Subsequent ▇▇▇▇▇”), the Non-Participating Party shall forfeit and relinquish unto the Participating Party its right, title and interest in such Subsequent Well until the payout of the non-consent penalty under the Operating Agreement. 7.3 The Parties agree to openly share data and information on joint ▇▇▇▇▇ drilled or to be drilled pursuant to this Agreement, including: logs, cores, well plans, cost estimates, marketing arrangements, production data and analysis. However, with respect to the information provided to a Party pursuant to this Sub-Article 7.3, the other Party EXPRESSLY DISCLAIMS ANY REPRESENTATION OR WARRANTY, EXPRESS, STATUTORY OR IMPLIED, AS TO (I) THE CONTENT, CHARACTER OR NATURE OF ANY REPORT OR ANY ENGINEERING OR GEOLOGICAL INTERPRETATION RELATING TO THE PROSPECT, (II) THE QUANTITY, QUALITY OR RECOVERABILITY OF HYDROCARBONS IN OR FROM THE PROPERTIES, (III) ANY ESTIMATES OF THE VALUE OF THE PROSPECT OR FUTURE REVENUES GENERATED BY THE PROSPECT, (IV) THE PRODUCTION OF HYDROCARBONS FROM THE PROSPECT, (V) THE CONTENT, CHARACTER OR NATURE OF ANY INFORMATION, MEMORANDUM, REPORTS, BROCHURES, CHARTS OR STATEMENTS PREPARED BY ANY PARTY OR THIRD PARTIES WITH RESPECT TO THE PROPOSED WELL, AND (VI) ANY OTHER MATERIALS OR INFORMATION THAT MAY HAVE BEEN MADE AVAILABLE TO NON- PROPOSING PARTY OR ITS AFFILIATES, OR ITS OR THEI...

Well Proposals. All proposed Initial Drilling Program ▇▇▇▇▇ and Development ▇▇▇▇▇ shall be subject to the proposal procedures, consents, and non-consent penalties as set forth in the Joint Operating Agreement, a form of which is attached as Exhibit D (the “JOA”), which shall govern all matters related to well proposals, operations, and elections for each such well. A JOA shall be entered into on a well-by-well or unit-by-unit basis, unless otherwise agreed by the Parties in writing.

Well Proposals. Until such time as Participant has expended the entire Carry Amount pursuant to Section 4.3, except as provided in Sections

Well Proposals. If Farmee proposes a well on any Block on which Farmor has not elected to convert its interest to a carried interest, pursuant to Clause 8 hereof, and prior to the final date for election to so convert Farmor shall, notwithstanding the provisions of Clause 8 hereof, exercise its right to elect to convert its interest in the Block on which the well is proposed to be drilled to a thirty (30%) percent carried interest within thirty (30) days of the date of receipt of notice proposing the well. If Farmor fails to elect to so convert within the said thirty (30) day period, it will have no further right to elect on such Block and such Block shall continue to be subject to the Operating Agreement.

Well Proposals. Except as provided in Article 9.3.3 (Proposal for Multiple Operations), each Party shall respond within __________ (___) days after receipt of the well, Rework or Recompletion proposal, but if (a) a drilling rig is on location, (b) the proposal relates to the same well or its substitute, and (c) standby charges are accumulating, a response shall be made within __________ (___) hours after receipt of the proposal, [ ] inclusive [ ] exclusive of Saturdays, Sundays, and federal holidays. When a proposal is made to conduct multiple Development Operations at separate well locations using the same rig, each Party shall respond (a) to the well operation taking precedence, within __________ (___) days after receipt of the proposal; and (b) to each subsequent well location, within __________ (___) hours after completion of approved operations at the prior location and notification thereof by Operator.

Well Proposals. Except as otherwise provided for herein, on a Prospect Area by Prospect Area basis, no well may be proposed, except by the operator: a) during the pendency of another well proposal on that Prospect Area; or b) until at least 30 days after the previous well in the Prospect Area has been completed as either a producer of oil and/or gas or as a dry hole. Such restrictions shall not apply to the extent that the proposed operations are necessary, in good faith, to acquire, maintain or hold a lease, farmin or other Mineral Interest located within the AMI. Notwithstanding anything herein to the contrary, a non-operator shall have the right to make a well proposal during the periods outlined in a) or b) above, and said proposal shall be deemed submitted for purposes of response on the first day after the expiration of such period. In the event of competing well proposals, the parties agree to meet for a technical review of each proposal and determine, in good faith, which proposal to proceed under. For purposes of this paragraph, all acreage within the AMI that is not within one of the designated Prospect Areas, shall constitute one Prospect Area, the result being that for purposes of well proposals hereunder, without the consent of all parties, one well, and no more than one well may be proposed at a time in each of: a) the ▇▇▇▇▇ Ranch Area; b) the Hill Ranch/Bonnerville/▇▇▇▇ Prairie Area; c) the Simsboro Area; d) the Red Oak Area; and e) the balance of the area within the AMI. Notwithstanding the above, in no event shall a party, other than the designated operator under the applicable JOA, propose more than three ▇▇▇▇▇ on three Prospect Areas at any given time. Furthermore, no ▇▇▇▇▇ may be proposed within 1200 feet of any currently existing producing well(s) in which either party has an interest without the prior consent of such party.

Well Proposals. SELLER has received a well proposal from Zavanna, LLC for the drilling of the B▇▇▇▇▇ 24-13 #1H well and has elected to participate in such well in writing, properly and timely delivered to Zavanna, LLC. BUYER acknowledges notice of such proposed well and agrees to assume SELLER’s position under such election to participate. SELLER agrees to notify BUYER immediately upon receipt of any additional well proposals covering the Leases and Lands which may be delivered to SELLER prior to recording of the Assignment(s) contemplated hereunder. BUYER will be responsible for notifying the proposing party of BUYER’s election as to such well proposals.

Well Proposals. Purchaser acknowledges that Seller has elected to participate in the ▇▇▇▇▇▇ ▇▇ 11-379 HN and ▇▇▇▇▇▇ ▇▇ 11-380 ▇▇ ▇▇▇▇▇ located in Section 11 of Township 1 South, Range 67 West proposed by Great Western Operating Company and that Seller has provided the well proposals to Purchaser. Purchaser agrees to assume all obligations related to such ▇▇▇▇▇.