Option Well definition

Option Well means the well or ▇▇▇▇▇, in addition to the Test Well, that the Farmee has the option to drill, pursuant to clause 6 entitled ROLLING OPTION WELL(s) of the Head Agreement, to earn a Working Interest in the Farmout Lands and/or the Option Lands, as the case may be;

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Option Well shall have the meaning given to such term in Section 3.1(c)(1).

Option Well means, if applicable, any well in addition to the Test Well that the Farmee has the option to drill pursuant to the Head Agreement to earn a Working Interest.

Examples of Option Well in a sentence

• Farmee shall continuously and diligently drill the Option Well to Contract Depth and complete, cap or abandon same at its sole cost, risk and expense.

• Failure by Farmee to elect to drill an Option Well in accordance with the provisions of subclause (a) or (b) above shall be deemed to be an election to surrender its rights to drill an Option Well and to earn an interest in the unearned Farmout Lands and Option Lands.

• The said four (4) sections shall be selected with fourteen (14) days of rig release of the Option Well, which selection must conform to the Department of Energy Regulations governing lease selection from a PNG License.

• When Burlington drills to its Objective Depth and completes either the Second Unit Obligation Well or an Option Well in a section where it has not previously earned a Lease or Interest, whether as a producer or as a dry hole, the Participants will assign to Burlington 100% of their working interest and operating rights below the Base of the Fort Union Formation in all Leases covering the section in which such well was drilled, but only to the extent that such Leases cover lands in that section.

• Seller shall provide written notice to Buyer not less than 30 days prior to the date operations are to commence upon the Option Well of its right to exercise the Option Well option.

• In the event Farmee so elects, the Option Well shall be Spud within 30 days of Farmee's election to drill, subject to surface access and rig availability.

• Without limiting the generality of the foregoing, Farmee may (but is not required), when selecting any 6 section block of lands in which Farmee earns a 40% undivided interest by the drilling of the Test Well or any Option Well, include lands from each of the 38.5 Section Block and the 31 Section Block in any such 6 section block.

• Notwithstanding Section 4.2, if Farmee drills a 9th Option Well, it will earn 50% of the Farmor’s Pre-Farmout Working Interest in the 9.0 remaining sections (which were not earned by the drilling of the Test Well and the prior 8 Option ▇▇▇▇▇).

• All of the terms and conditions applicable to the Test Well will apply to the Option Well mutatis mutandis other than the Option Well will be commenced within 45 days of the Farmee’s election.

• Should Buyer elect to exercise the option as to the Option Well, the Option Well shall become subject to the Management Agreement.

More Definitions of Option Well

Option Well. - means a Well drilled by the Farmee on an Option Area;

Option Well means any gas well drilled under Article IX hereof as part of the Development Program.

Option Well as set forth in Section 1.1(s) of the Agreement shall be amended to mean the Hardy 3D14-17-3A3-17-4-21 Well.

Option Well. - means a Well Drilled by the Farmee on an Option Area;

Option Well has the meaning set forth in Section 4.1;