Common Contracts
1 similar Farm Out Agreement contracts
Farm out meaning oil and gasFarm Out Agreement • October 22nd, 2021
In the oil and gas industry, a breeding agreement is an agreement between the owner of one or more mineral leases, called a “farmer”, and another company that wants to obtain a percentage of ownership of that lease or lease in exchange for supply services, called a “pharmic.” The typical service described in the breeding agreements is the drilling of one or more oil and/or gas wells. A breeding agreement differs from a conventional transaction between two oil and gas alloys, because the primary consideration is the rendering of services, rather than the mere exchange of money. [1] Breeding agreements typically provide that the farmer will allocate the quantum of interest defined in the lease
