Drilling and Development. AInitial Well: On or before the day of , 20 , Operator shall commence the drilling of the Initial Well at the following location: See Participation Agreement dated November 1, 2005 by and between Eden Energy Corp. and Merganser Limited - 8 - and shall thereafter continue the drilling of the well with due diligence to The drilling of the Initial Well and the participation therein by all Parties is obligatory, subject to Article VI.C.1. as to participation in Completion operations and Article VI.F. as to termination of operations and Article XI as to occurrence of force majeure. B Subsequent Operations:
Drilling and Development. The Company and the Lender agree to continue to engage in drilling and development efforts pursuant to the Operating Agreement, including the drilling and development of the App Energy H-33 well and the next unnamed well to be drilled thereafter (such two wells, the “Planned Wells”). With respect to the Planned Wells, notwithstanding anything to the contrary set forth in the Operating Agreement or any other agreement between the Company and the Lender, the Company agrees to fund on the Lender’s behalf one-half of the Lender’s costs to participate in the Planned Wells (such one-half of the Lender’s costs, the “Carry”). The Lender agrees that as part of drilling the App Energy H-33, certain operations have been or will be conducted that are outside the scope of typical drilling and completion operations. The Parties agree that these operations are being conducted to benefit the Parties in the future development of the leasehold. Specifically, these operations include the drilling and logging of the vertical portion of the Murray H-34 and the coring, core analysis, and other mutually agreed to reporting of the App Energy H-33. The Parties agree that some of the costs involved in these operations are not included in the Carry and, therefore the Lender agrees to pay its full share (i.e., 25%) of any costs that are incurred in 1) operations related to coring and analyzing the Berea formation; and, 2) operations involving the drilling and logging the vertical well referred to as the Murray H-34.
Drilling and Development. The items set forth on Exhibit 5(q), in the aggregate, constitute a true, correct and complete list and description of (i) all obligations that Sellers may have to drill wells on any of the Properties necessary to prevent such Properties from becoming subject to forfeiture, loss, release, or the obligation to re-assign any acreage, lands, leases (or portions thereof) affecting such a Property prior to the commencement of any continuous drilling obligation or similar drilling obligation, and (ii) a description of any clauses in leases affecting the Properties requiring continuous drilling activity; SAVE AND EXCEPT, however, that Exhibit 5(q) does not include any reference to, and no representation is made in this Section 5(q) with regard to, any lease habendum clauses requiring production in paying quantities beyond the primary terms of leases to which the Properties are subject.
Drilling and Development