Conversion Upon Abandonment Sample Clauses

Conversion Upon Abandonment. If, within two years after the expiration of the Commitment Period, Harken Colombia exercises its right pursuant to Section 3.14 to abandon any portion of the Subject Interests and/or the Association Contract other than that required to be released, surrendered and/or abandoned for Harken Colombia to comply with the terms and conditions of the Association Contract and, at such time, the interest so released, surrendered and/or abandoned by Harken Colombia contains material proved reserves which hereafter are discovered as described below and are capable of being developed and/or produced in a commercially reasonable manner considering all relevant circumstances, any interest of Investors in the Rio Negro NPI which has not been previously converted pursuant to Investors' Option, Owner's Option or Investors' Second Option shall automatically be converted into Preferred Shares pursuant to this Article VI. The conversion of Investors' interest in the Rio Negro NPI into Preferred Shares pursuant to this Article VI is also herein called "Conversion" and is intended to compensate the Investors in the event Owner and/or Harken Colombia is unable or unwilling to develop and/or produce a commercial discovery on the Subject Interests that was discovered by a well drilled by Harken Colombia on the Subject Interests after the date of this Agreement and that a prudent operator would develop and/or produce.