Prospect Payout as used herein shall mean, with regard to each Prospect, 9:00 a.m. on the first day of the calendar month following the calendar month during which Contango’s share of all revenues from the sale of oil, gas and other minerals produced from a Prospect, net of Contango’s share of (i) all royalties, overriding royalties (including the JXX XXXX) and other similar lease burdens, (ii) severance taxes, production taxes, excise taxes and other similar taxes levied on or measured by such production and (iii) lease operating expenses attributable to such Prospect first equals or exceeds Contango’s share of all CAPEX expended for the origination and acquisition of such Prospect and the conduct of exploration, development and production operations thereon. At Prospect Payout, JXX shall be entitled to an assignment or automatic reversion of an undivided twenty-five percent (25%) of Contango’s working interest in the Prospect (the “JXX Back-in”). Contango shall maintain books and records tracking the status of Prospect Payout with respect to each Prospect and shall issue quarterly statements to JXX regarding the status of Prospect Payout for each Prospect. Simultaneous with JXX’x assignment to Contango of Contango’s interest in each Prospect, both parties shall execute a mutually acceptable form of memorandum of agreement and record same in the appropriate records of any parish or county within which the Prospect is located (or in the nearest adjacent parish or county in the case of oil and gas leases in the Outer Continental Shelf) to give public notice of the JXX Back-in.”
Prospect Payout as used herein shall be defined as that point in time when each Participant in the acquisition and development of the Lease or Leasehold Interest has recouped from its share of the total value of production from the Lease (after deduction of production taxes, excise taxes, lessor’s royalty, existing lease burdens and HE&D’s overriding royalty) its share of the cost of drilling, testing, completing, equipping and operating all xxxxx, the costs of all platforms, production facilities, pipelines, flowlines and other equipment necessary to produce the same, any bonus, rentals or other payments made to appropriate parties for the rights to such lease and production, less any proceeds received for the sale of interest pursuant to this agreement.
Prospect Payout means when Prospect Sales Proceeds equals the total of Prospect Acquisition Cost and Alcorn Overhead Cost allocated per this Agreement to the Prospect.
Examples of Prospect Payout in a sentence
Assignee agrees to bear and pay for their proportionate share {Assignee's "Before Prospect Payout Interest") of the costs associated with the drilling and development of the prospect before Prospect Payout as hereinafter defined, and their proportionate share (Assignee's "After Prospect Payout Interest") of the costs associated with the prospect after Prospect Payout, as hereinafter defined.
Sellers shall deliver to Buyer a written statement signed by Sellers and National Energy Group, Inc., identifying in reasonable detail all prospect costs as of September 30, 1996, to be considered in the calculation of "Prospect Payout," as that term is defined in the letter agreement described as item 1.
Sellers shall deliver to Buyer a written statement signed by W & T Offshore, Inc., identifying in reasonable detail all prospect costs as of September 30, 1996, to be considered in the calculation of "Prospect Payout," as that term is defined in the letter agreement described as item 1.
The term "Reserve Acquisition Payout" shall be defined the same as the term "Prospect Payout," as set forth in Section 2.3, with the exception that the revenues, the deductions from revenues, and the costs and expenses to be considered shall be those relating to the oil and gas interests acquired in connection with that particular Reserve Acquisition, rather than solely with respect to a particular Prospect.
At Prospect Payout, JEX shall be entitled to an assignment or automatic reversion of an undivided twenty-five percent (25%) of Contango's working interest in the Prospect (the "JEX Xxxk-in").
More Definitions of Prospect Payout
Prospect Payout means, that point in time when the cumulative Proceeds received from the Xxxxx drilled on the Hackberry Creek Project equal the cumulative Acquisition Costs, Seismic Costs, Exploration and Development Costs, and Operating Costs attributable to all such Xxxxx incurred and paid pursuant to the Hackberry Creek Project. For purposes hereof, the following terms will have the meaning set out below,
Prospect Payout as used herein shall be determined independently for each Party and shall be defined as that point in time when each Participant in the acquisition and development of the Lease or Leasehold Interest has recouped from its share of the total value of production from the Lease (after deduction of production taxes, excise taxes, lessor’s royalty, existing lease burdens and HE&D’s overriding royalty) its share of the cost of drilling, testing, completing, equipping and operating all xxxxx, the costs of all platforms, production facilities, pipelines, flowlines and other equipment necessary to produce the same, any bonus, rentals or other payments made to appropriate parties for the rights to such lease and production, less any proceeds received for the sale of interest pursuant to this Agreement. It is understood that the Contract Area, Xxxxxx Island Block 29, contains multiple prospects opportunities that have been disclosed to the Parties hereto. The HE&D Burden shall be applicable to each prospect individually and Prospect Payout shall be calculated on a prospect by prospect basis. The Parties acknowledge that their respective geological and geophysical managers have knowledge of and maps of the specific individual prospects within the Contract Area.
Prospect Payout means, separately as to each of the mutually agreed to Prospect that point in time when the cumulative Proceeds received from the Xxxxx drilled on such distinct Prospect Area equal the cumulative Acquisition Costs, Seismic Costs, Exploration and Development Costs, and Operating Costs attributable to all such Xxxxx incurred and paid pursuant to that distinct Prospect. For purposes hereof, the following terms will have the meaning set out below, determined separately as to each of the agreed to Phases, respectively:
Prospect Payout as defined below, Assignor shall back-in against the interest of Assignee in the Leases for a twenty-five percent of eight-eighths (25% of 8/8ths) working interest whereupon the parties shall own the After Prospect Payout interests set forth in Exhibit "A-l" hereto. All costs and expenses incurred prior to the occurrence of Prospect Payout shall be borne by the parties in accordance with their respective Before Prospect Payout interests set forth in Exhibit "A-l" hereto.
Prospect Payout is defined as and shall occur at 12:01 a.m. on the first day of the month following the day when the net proceeds received by Assignee out of production from the Test Well and all subsequent xxxxx drilled on. the prospect (after first deducting the production and severance taxes, and all royalty payments effective as of the effective date of this Agreement, lessor's royalty, overriding royalties including, without limitations, the overriding royalties reserved by Assignor herein, non-participating royalties, and production payments) shall equal the sum of Assignee's share of the:
Prospect Payout as used herein shall be defined as that point in time when each Participant in the acquisition and development of the Lease or Leasehold Interest has recouped from its share of the total value of production from the Lease (after deduction of production taxes, excise taxes, lessor’s royalty, existing lease burdens and HE&D’s overriding royalty) its share of the cost of drilling, testing, completing, equipping and operating all xxxxx, the costs of all platforms, production facilities, pipelines, flowlines and other equipment necessary to produce the same, any bonus, rentals or other payments made to appropriate parties for the rights to such lease and production, less any proceeds received for the sale of interest pursuant to this agreement; and In addition to the royalty burden and the HE&D Burden as set forth above, Block 82 is burdened by a one percent (1%) overriding royalty interest in favor of Dominion Exploration & Production, Inc., (“Dominion”) pursuant to that certain Letter Agreement dated April 19, 2007 between Helis and Dominion. The Dominion override shall be treated in the same manner as the override payable to HE&D.
Prospect Payout means when Prospect Sales Proceeds equals the total of Prospect Acquisition Cost and Alcoxx Xxxrhead Cost allocated per this Agreement to the Prospect.