Common use of Completion Elections Clause in Contracts

Completion Elections. When an Initial Prospect Well has been drilled to Authorized Depth and Casing Point has been reached, EXXI will simultaneously with the notice provided for above in Section 5.03 notify all BCP Participants, Centurion and Ellora of its election to proceed with one (1) of the operations prescribed in Article VI.C. of the governing Prospect JOA. Each working interest owner having the right to make an election shall do so pursuant to the terms and provisions of the governing Prospect JOA except as otherwise provided for in this Section 5.04. Notwithstanding the terms and provisions of the governing Prospect ▇▇▇▇ and solely as to Initial Prospect ▇▇▇▇▇, it is hereby understood and agreed that in the event Ellora elects not to participate is the setting of production casing and in a completion attempt for all of its after casing point interest, Ellora shall relinquish all of its after casing point interest proportionately to the BCP Participants in the entirety of such Prospect Contract Area. Ellora shall timely execute whatever documents and assignments are necessary to effect such forfeiture and relinquishment within thirty (30) days after any such election. Notwithstanding the terms and provisions of the governing Prospect ▇▇▇▇ and solely as to Initial Prospect ▇▇▇▇▇, it is hereby understood and agreed that as to any particular Prospect JOA and its respective Prospect Contract Area, Centurion has the right upon reaching Casing Point in each Initial Prospect Well drilled pursuant hereto to participate or not to participate in the setting of production casing and a completion attempt with all or some portion of its after casing point carried interest as set forth on the respective Exhibit “A” to the governing Prospect JOA. Should Centurion elect not to participate in the setting of production casing and in a completion attempt for all or some portion of its after casing point carried interest, Centurion shall relinquish such non-participating portion proportionately to the BCP Participants in the entirety of such Prospect Contract Area. Centurion shall timely execute whatever documents and assignments are necessary to effect such forfeiture and relinquishment within thirty (30) days after any such election. If EXXI recommends no attempt be made to continue further operations in the Initial Prospect Well, and such Initial Prospect Well is plugged and abandoned, EXXI shall pay sixty-six and two-thirds percent (66.667%) of all of the costs and expenses of plugging and abandoning such Initial Prospect Well. Upon receipt of any such recommendation from EXXI, Centurion and/or Ellora shall either consent to such plugging and abandonment or shall notify EXXI of its (or their) election to takeover such Initial Prospect Well in return for committing to plug and abandon such Initial Prospect Well. All subsequent ▇▇▇▇▇ drilled within each Prospect (except for a substitute well for the Initial Prospect Well as provided for below in Section 5.06) shall be governed by the terms and provisions of the pertinent Prospect JOA.

Completion Elections. When If InterOil proposes the Completion of an Initial Prospect Well has been drilled to Authorized Depth and Casing Point has been reachedExploration Well, EXXI the following will simultaneously with occur: (a) InterOil shall give each Investor written notice of the notice provided for above in Section 5.03 notify all BCP Participants, Centurion and Ellora of its election intent to proceed with one (1) Completion, together with technical, geological and other logging data and a proposal for such Completion, including cost estimates, that can reasonably be supplied which is relevant to Investor making its decision in Section 4.2(b). Such notice shall prominently state that a response is due from the Investor within 48 hours of receipt of the operations prescribed in Article VI.C. notice. InterOil shall confirm each Investor's receipt of such notice by return fax or by return e-mail. (b) Within 48 hours of any confirmation of receipt of notice from InterOil pursuant to Section 4.2(a), Investor must give written notice to InterOil that either: (i) Investor agrees to pay its IPI Percentage of the governing Prospect JOAcosts incurred with respect to the aforementioned Completion; or (ii) that Investor will not to pay its IPI Percentage of the costs of the aforementioned Completion, and forfeit (A) Investor's rights to that well and the development of any Field discovered from such well and (B) Investor's rights to convert its IPI Percentage into Common Shares as contemplated by Section 6.1. Each working interest owner having If Investor fails to timely respond to InterOil's notice as provided above, then the right Investor shall be deemed to make an election shall do so have elected pursuant to the terms and provisions Section 4.2(b)(ii). (c) If an Investor agrees to pay its IPI Percentage of the governing Prospect JOA except as otherwise provided for in this Section 5.04. Notwithstanding the terms and provisions of the governing Prospect ▇▇▇▇ and solely as costs incurred with respect to Initial Prospect ▇▇▇▇▇Completion, it is hereby understood and agreed that in the event Ellora elects not Investor must make its payment to participate is the setting of production casing and in a completion attempt for all of its after casing point interest, Ellora shall relinquish all of its after casing point interest proportionately to the BCP Participants in the entirety InterOil of such Prospect Contract Area. Ellora shall timely execute whatever documents and assignments are necessary to effect such forfeiture and relinquishment within thirty (30) costs of Completion not later than 30 days after any such election. Notwithstanding the terms and provisions of the governing Prospect ▇▇▇▇ and solely as to Initial Prospect ▇▇▇▇▇, it is hereby understood and agreed that as to any particular Prospect JOA and its respective Prospect Contract Area, Centurion has the right upon reaching Casing Point in each Initial Prospect Well drilled pursuant hereto to participate or not to participate in the setting of production casing and a completion attempt with all or some portion of its after casing point carried interest as set forth on the respective Exhibit “A” to the governing Prospect JOA. Should Centurion elect not to participate in the setting of production casing and in a completion attempt for all or some portion of its after casing point carried interest, Centurion shall relinquish such non-participating portion proportionately to the BCP Participants in the entirety of such Prospect Contract Area. Centurion shall timely execute whatever documents and assignments are necessary to effect such forfeiture and relinquishment within thirty (30) days after any such election. If EXXI recommends no attempt be made Investor fails to continue further operations in pay such Completion costs within the Initial Prospect Well, and such Initial Prospect Well is plugged and abandoned, EXXI shall pay sixty30-six and two-thirds percent (66.667%) of all of the costs and expenses of plugging and abandoning such Initial Prospect Well. Upon receipt of any such recommendation from EXXI, Centurion and/or Ellora shall either consent to such plugging and abandonment or shall notify EXXI of its (or their) election to takeover such Initial Prospect Well in return for committing to plug and abandon such Initial Prospect Well. All subsequent ▇▇▇▇▇ drilled within each Prospect (except for a substitute well for the Initial Prospect Well day period as provided for below in Section 5.06the preceding sentence, InterOil may give written notice to Investor of such failure to pay, and if Investor fails to pay such amounts owing within five (5) days after actual receipt and confirmation of such notice by InterOil, (i) Investor shall be governed deemed to have elected pursuant to Section 4.2(b)(ii) and will forfeit its right in such well and any Field discovered by such well and (ii) Investor shall forfeit any right to convert its IPI Percentage into Common Shares under Section 6.1. (d) For greater clarity, the terms and non-consent provisions of the pertinent Prospect JOASection 5.2 shall not apply to Completion operations under Section 4.2.

Completion Elections. When If InterOil proposes the Completion of an Initial Prospect Well has been drilled to Authorized Depth and Casing Point has been reachedExploration Well, EXXI the following will simultaneously with occur: (a) InterOil shall give each Investor written notice of the notice provided for above in Section 5.03 notify all BCP Participants, Centurion and Ellora of its election intent to proceed with one (1) Completion, together with technical, geological and other logging data and a proposal for such Completion, including cost estimates, that can reasonably be supplied which is relevant to Investor making its decision in Section 4.2(b). Such notice shall prominently state that a response is due from the Investor within 48 hours of receipt of the operations prescribed in Article VI.C. notice. InterOil shall confirm each Investor’s receipt of such notice by return fax or by return e-mail. (b) Within 48 hours of any confirmation of receipt of notice from InterOil pursuant to Section 4.2(a), Investor must give written notice to InterOil that either: (i) Investor agrees to pay its IPI Percentage of the governing Prospect JOAcosts incurred with respect to the aforementioned Completion; or (ii) that Investor will not to pay its IPI Percentage of the costs of the aforementioned Completion, and forfeit (A) Investor’s rights to that well and the development of any Field discovered from such well and (B) Investor’s rights to convert its IPI Percentage into Common Shares as contemplated by Section 6.1. Each working interest owner having If Investor fails to timely respond to InterOil’s notice as provided above, then the right Investor shall be deemed to make an election shall do so have elected pursuant to the terms and provisions Section 4.2(b)(ii). (c) If an Investor agrees to pay its IPI Percentage of the governing Prospect JOA except as otherwise provided for in this Section 5.04. Notwithstanding the terms and provisions of the governing Prospect ▇▇▇▇ and solely as costs incurred with respect to Initial Prospect ▇▇▇▇▇Completion, it is hereby understood and agreed that in the event Ellora elects not Investor must make its payment to participate is the setting of production casing and in a completion attempt for all of its after casing point interest, Ellora shall relinquish all of its after casing point interest proportionately to the BCP Participants in the entirety InterOil of such Prospect Contract Area. Ellora shall timely execute whatever documents and assignments are necessary to effect such forfeiture and relinquishment within thirty (30) costs of Completion not later than 30 days after any such election. Notwithstanding the terms and provisions of the governing Prospect ▇▇▇▇ and solely as to Initial Prospect ▇▇▇▇▇, it is hereby understood and agreed that as to any particular Prospect JOA and its respective Prospect Contract Area, Centurion has the right upon reaching Casing Point in each Initial Prospect Well drilled pursuant hereto to participate or not to participate in the setting of production casing and a completion attempt with all or some portion of its after casing point carried interest as set forth on the respective Exhibit “A” to the governing Prospect JOA. Should Centurion elect not to participate in the setting of production casing and in a completion attempt for all or some portion of its after casing point carried interest, Centurion shall relinquish such non-participating portion proportionately to the BCP Participants in the entirety of such Prospect Contract Area. Centurion shall timely execute whatever documents and assignments are necessary to effect such forfeiture and relinquishment within thirty (30) days after any such election. If EXXI recommends no attempt be made Investor fails to continue further operations in pay such Completion costs within the Initial Prospect Well, and such Initial Prospect Well is plugged and abandoned, EXXI shall pay sixty30-six and two-thirds percent (66.667%) of all of the costs and expenses of plugging and abandoning such Initial Prospect Well. Upon receipt of any such recommendation from EXXI, Centurion and/or Ellora shall either consent to such plugging and abandonment or shall notify EXXI of its (or their) election to takeover such Initial Prospect Well in return for committing to plug and abandon such Initial Prospect Well. All subsequent ▇▇▇▇▇ drilled within each Prospect (except for a substitute well for the Initial Prospect Well day period as provided for below in Section 5.06the preceding sentence, InterOil may give written notice to Investor of such failure to pay, and if Investor fails to pay such amounts owing within five (5) days after actual receipt and confirmation of such notice by InterOil, (i) Investor shall be governed deemed to have elected pursuant to Section 4.2(b)(ii) and will forfeit its right in such well and any Field discovered by such well and (ii) Investor shall forfeit any right to convert its IPI Percentage into Common Shares under Section 6.1. (d) For greater clarity, the terms and non-consent provisions of the pertinent Prospect JOASection 5.2 shall not apply to Completion operations under Section 4.2.