Commercial Well definition

Commercial Well means any Production Partnership Well which is capable of producing Hydrocarbons in commercial quantities, including those wells which are shut-in or whixx xave not been abandoned within 60 days following the commencement of production. For purposes of this definition, production shall refer to the commencement of the commercial marketing of Hydrocarbons, and shall not include any spot sales of Hydrocarbon production as a result of testing procedures.

Commercial Well means the first Well on any geological structure which after testing in accordance with sound and accepted industry Production practices, and verified by Sonangol, is found through analysis of test results to be capable of producing, from a single reservoir not less than an average rate of five (5) thousand Barrels of Crude Oil per day. Contractor shall have the right to request to Sonangol that a Well which is within the aforesaid criteria is not to be deemed a Commercial Well. To exercise this right, Contractor shall timely provide Sonangol information which would evidence that in the particular circumstances of such Well the same should not be deemed a Commercial Well. Among other factors, consideration shall be given to porosity, permeability, reservoir pressure, Crude Oil saturation and the reservoir recoverable reserves. Contractor has the option to declare a Well a Commercial Well at a producing rate below that one set forth above where Contractor is of the opinion that the accumulation may produce sufficient Crude Oil to recover the costs and make a reasonable return.

Commercial Well means a well that serves small

Examples of Commercial Well in a sentence

• After the declaration of a Commercial Well, Contractor may undertake the Appraisal of the discovery by drilling one or more Appraisal Xxxxx to determine whether such discovery can be classified as a Commercial Discovery.

• Any Commercial Well shall count towards fulfilling the work and expenditure obligations provided for in Article 14, but the Appraisal Well(s) that have been drilled following the discovery of a Commercial Well shall not count towards such obligations.

• Unless otherwise agreed by Sonangol, not later than six (6) Months after the completion of the second Appraisal Well, or twenty-four (24) Months after the declaration of the Commercial Well, whichever is earlier, Contractor shall give written notice to Sonangol indicating whether the discovery is considered commercial or not.

• Contractor has the right to declare a Commercial Discovery without first having drilled a Commercial Well or Xxxxx.

• The date of this advice is the date of the declaration of the Commercial Well, should such well exist.

More Definitions of Commercial Well

Commercial Well has the meaning given such term in Section 3.2(c).

Commercial Well means a well capable of producing Hydrocarbons in quantities sufficient to yield a return in excess of operating and production costs and expenses (without taking into account costs of exploration (including land and seismic costs), drilling, testing, hydraulic fracturing, completion and equipping such well for production).

Commercial Well means a well that serves small businesses and facilities in which water is the prime ingredient of the service rendered, including water wells drilled to support horizontal well operations.

Commercial Well means a water well used to supply a single commercial establishment.

Commercial Well means the first Well on any geological structure or structures which after testing in accordance with sound and accepted industry Production practices, and verified by Sonangol, is found through analysis of test results to be capable of producing, from a single reservoir not less than an average rate of XXX Barrels of Crude Oil per day (XXX b/d). Contractor Group shall have the right to request to Sonangol that a Well which is within the aforesaid criteria is not to be deemed a Commercial Well. To exercise this right Contractor Group shall timely provide Sonangol information which would evidence that in the particular circumstances of such Well the said well should not be deemed a Commercial Well. Among other factors, consideration shall be given to porosity, permeability, reservoir pressure, Crude Oil saturation and the reservoir recoverable reserves. Contractor Group has the option to declare a Well as Commercial Well at a producing rate below the one set out above where Contractor Group is of the opinion that the accumulation may produce sufficient Crude Oil to recover the costs and ensure a reasonable return.

Commercial Well means an oil or gas well capable of actually producing oil or gas in paying quantities and (1) which is placed in actual production or (2) a well which is completed as a shut-in gas well and which is capable of producing gas in paying quantities.

Commercial Well means a water well that is used to supply water to an individual enterprise engaged in the sale of water for profit.