Common use of Exploratory Operation Clause in Contracts

Exploratory Operation. An operation that is conducted on the Contract Area and that is any of the following: (a) proposed to Complete an Exploratory Well; (b) proposed for an Objective Horizon that is not a Producible Reservoir; or (c) proposed for an Objective Horizon that has a Producible Well, but that will be penetrated at a location where the distance between the midpoint of the Objective Horizon to be penetrated by the proposed operation and the midpoint of the same Objective Horizon where it is actually penetrated by a Producible Well will be at least six thousand (6,000) feet from a Gas Completion or three thousand ((3,000) feet from an Oil Completion. (d) proposed for an Objective Horizon that is unanimously agreed by the Parties not to be in an existing Producible Reservoir; or (e) proposed as a deeper drilling operation below the base of the deepest producible reservoir.

Exploratory Operation. An operation that is conducted on the Contract Area and that is any of the following: (a) proposed to Complete an Exploratory Well; (b) proposed for an Objective Horizon that is not a Producible Reservoir; or (c) proposed for an Objective Horizon that has a Producible Well, but that will be penetrated at a location where the distance between the midpoint of the Objective Horizon to be penetrated by the proposed operation and the midpoint of the same Objective Horizon where it is actually penetrated by a Producible Well will be at least six thousand (6,000) feet from for a Gas gas Completion or and at least three thousand five hundred ((3,0003,500) feet from for an Oil oil Completion. (d) proposed for an Objective Horizon that is unanimously agreed by the Parties not to be in an existing Producible Reservoir; or (e) proposed as a deeper drilling operation below the base of the deepest producible reservoir.

Exploratory Operation. An operation that is conducted on the Contract Area Lease and that is any of the following: (aA) proposed to Complete an Exploratory Well; (bB) proposed for an Objective Horizon that is not a Producible Reservoir; orMODEL FORM OF OFFSHORE OPERATING AGREEMENT (cC) proposed for an Objective Horizon that has a Producible Well, but that will be penetrated at a location where the distance between the midpoint of the Objective Horizon to be penetrated by the proposed operation and the midpoint of the same Objective Horizon where it is actually penetrated by a Producible Well will be at least six thousand (6,000) feet from a Gas Completion or three thousand ((3,000) feet from for a gas Completion and at least two thousand (2,000) feet for an Oil oil Completion.; (dD) proposed for an Objective Horizon that is unanimously agreed by the Parties not to be in an existing Producible Reservoir; or (e) proposed as a deeper drilling operation below the base of the deepest producible reservoir.