Common use of Exploratory Operations Clause in Contracts

Exploratory Operations. Drilling Operations on the Lease which are: a) Scheduled for an objective zone, horizon or formation which has not been established as producible on the Lease under 2.16 below; or b) Scheduled for an objective zone, horizon or formation already established as producible on the Lease under 2.16 below, but the vertical projection of the midpoint of such objective will be penetrated at a location which is more than 3,000' from the vertical projection of the midpoint of the same objective in the nearest well on the Lease which has been proven to be producible, or such objective is agreed by all Parties to be in a separate reservoir not in communication with a well proven to be producible.