Examples of Initial Test Well in a sentence
Drilling of the Initial Test Well shall thereafter continue in a workmanlike manner to Contract Depth with the option to drill the Initial Test Well or subsequent wells to a deeper depth.
However, should Apache cash call Ridgewood for any portion of Ridgewood’s share of the drilling AFE on having entered into a drilling contract, and if Apache fails to spud the Initial Test Well within three (3) months of said cash call, then Apache shall owe and pay to Ridgewood interest on the cash call amount.
Interest will continue to accumulate and be due and payable thereafter for every additional three (3) month period the Initial Test Well remains undrilled.
Additionally, Apache shall provide an AFE for the estimated costs of mobilization and demobilization of the rig that will be utilized to drill the Initial Test Well within fifteen (15) days of contracting the rig.
As to the mobilization and demobilization of the rig used to drill the Initial Test Well, the interest of the Parties will be as provided in Article 2.3 above, until such time as costs for the mobilization and demobilization exceed eight million dollars ($8,000,000), at which time the interest will revert to the Ground Floor Interest.