Farmout Sample Clauses

Farmout. Operating Partnership shall have the power and right to enter into farmout agreements with respect to (i) the Overriding Royalty Depth and the Overriding Royalty Surface Acreage, free from any Net Profits Interest but subject to Pension Partnership's Overriding Royalty Interests, and (ii) the Net Profits Depth and the Net Profits Surface Acreage, free from the Overriding Royalty Interest but subject to any Net Profits Interest.

Farmout. The common petroleum industry transaction by which an oil and gas lease owner contracts to assign a lease or some portion of it to another who undertakes drilling obligations. The assignor usually retains an interest such as an overriding royalty, production payment or working interest.

Farmout. Within a period of five (5) years following the Closing, Seller may propose a maximum of two farmout agreements per year covering some or all of Buyer’s interest in the Wind River Assets for exploration activities and Buyer agrees to negotiate with Seller in good faith to enter such farmout agreements on commercially reasonable terms. Seller’s proposal for farmout agreements under this provision may not cover more than 50,000 net acres in the aggregate. The basic economic terms of any farmout agreement would be a farmout of: (1) in the first well - 100% of the working interest; with Buyer to deliver 80% Net Revenue Interest in the subject leases; an option for a back in for 25% working interest after a 200% payout; (2) 25% working interest in subsequent ▇▇▇▇▇ within contiguous four section areas; and (3) in order to earn the working interest in such subsequent ▇▇▇▇▇, Seller must spud each subsequent well within 6 months after the completion date for either the first well or a previous subsequent well, as applicable, subject, however, to stipulations contained in the leases issued by the United States of America.

Farmout. Subject to the Farmee funding the costs under section 2.2, the Farmee shall have the right to fund and earn an interest in the Lands, before and after payout, on the terms and conditions provided in this Article 2.

Farmout. On June 26, 2015 (the “Earn-In Closing Date”) and under seven separate Earning Agreements (the “Earning Agreements”), Paltar will farm out three specific graticular blocks in each of the six petroleum exploration permits identified in Schedule A and will cause Officer to farm out forty blocks in EP 468 in exchange for Nation’s (i) issuance of an aggregate 600 million Nation common shares (the “Nation Shares”) to Paltar, with an agreed value of US$.0333 per share, on the second business day following the Nation Meeting (defined in Paragraph 3, below), and (ii) payment to Paltar of an aggregate $5,315,000 by December 31, 2015. Each Earning Agreement will require that Nation Australia perform all necessary work and make all necessary expenditures to keep each concerned exploration permit in full force and effect until production licenses have been granted covering the three blocks identified in that permit, although Nation Australia may voluntarily terminate the Earning Agreement and surrender any further earning rights after the end of three permit years. Upon issuance of a production license covering one of the blocks, Paltar (or, if applicable, Officer) will assign its interest in such license, insofar as it covers the block, to Nation Australia. Production licenses are granted only where there has been a petroleum discovery, so there is no assurance that production licenses will be granted covering any of the blocks. There has been no discovery of petroleum on any of the permits and the permits produce no revenues.

Farmout. In consideration of Cliveden's agreement to assume the costs associated with the Concession, as hereinafter provided, Trinity, on behalf of itself and the Consortium, does hereby agree to sell and transfer to Cliveden fifty percent (50%) of the entire working interest in the Concession owned by Trinity. This assignment i▇ ▇▇▇▇ect to the following terms and conditions: A. Cliveden must notify T▇▇▇▇▇▇ ▇▇ ▇▇ter than November 30, 1999 that Cliveden has elected to receive the Assignment and to assume its obligations hereunder. B. Following such election, Trinity will promptly del▇▇▇▇ ▇o Cliveden an assignment (the "Assignment"), in a form and substance satisfactory to Cliveden, of fifty percent (50%) of 100% of the working interest in the Concession and will seek all necessary authorizations from the Government of Chad to assure that the ri▇▇▇▇ of Cliveden to such undivided interest are recognized by said government. C. Following receipt of the Assignment, and the approval of same by the Government of Chad, Cliveden agrees to ▇▇▇▇me one hundred percent (100%) of Trinity's actually and reasonably incurred and/or expended costs, from inception, in acquiring, administering, exploring and developing the acreage covered by the Concession until Payout (as hereinafter defined) occurs. D. Cliveden shall receive n▇▇▇▇▇ ▇▇▇▇▇▇t (90%) of all net revenue (with Trinity receiving the remaining ten percent (10%) of such revenue) attributable to the wells drilled on the acr▇▇▇▇ covered by the Concession until such time that Cliveden has recovered from all sales of production, net of all royalties, severance taxes, production taxes or similar burdens, one hundred ten percent (110%) of all sums paid in connection with the Concession obligations assumed hereunder including but not limited to (i) all costs heretofore incurred by Trinity for acquisition of the Concession and rental payments in connection therewith and (ii) all costs for third party geological and geophysical evaluations, site preparations, drilling, reworking, deepening, sidetracking, plugging back, surveying, staking, surface damage, road construction, logging, fracturing and other stimulation, pipelines and pipeline concessions, testing, completing, equipping (including equipment costs), operating, plugging and abandoning, and producing (including overhead charges) with respect to all wells drilled on the acreage ▇▇▇▇red by the Concession. Following Cliveden's recovery of one hundred ten percent (110%) of such co...

Farmout. WELL▇ All well▇ ▇▇ the Farmout Area which are drilled, sidetracked, deepened, reworked, completed or recompleted by or on behalf of Farmoutee under the terms of this Agreement or in which other downhole operations are performed by or on behalf of Farmoutee to commence or restore production under the terms of this Agreement, LESS AND EXCEPT the Excluded Well▇.

Farmout. In October 1999, Leviathan executed an agreement with El Paso Production Company ("EPP"), formerly Sonat Exploration Company, to farm out its working interest in the ▇▇▇▇▇ Bank 958 Unit. Under the terms of the farmout agreement, Leviathan increased its overriding royalty interest in the ▇▇▇▇▇ Bank NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) 958 Unit, convertible at its option, into an undivided working interest once EPP has recouped the costs associated with its drilling and completion activities on the ▇▇▇▇▇ Bank 958 Unit. In July 1999, Leviathan entered into a contract with MODEC International, L.L.C., ("MODEC") for the design, construction, fabrication and installation of the hull, tendons, pilings and production risers for a tension-leg platform ("TLP") to be used as part of the ▇▇▇▇▇ Bank 958 Unit development. Upon the farm out of the ▇▇▇▇▇ Bank 958 Unit, Leviathan suspended the construction of the TLP and is currently discussing its use at a different location with several major producers. Leviathan expects to incur up to $10 million of costs related to the TLP which is expected to be recovered through the ▇▇▇▇▇ Bank 958 Unit farmout agreement. As a result, management does not expect the ultimate resolution of this matter to have a material adverse effect on Leviathan's consolidated financial position, results of operations or cash flows. Leviathan is involved from time to time in various claims, actions, lawsuits and regulatory matters that have arisen in the ordinary course of business, including various rate cases and other proceedings before the Federal Energy Regulatory Commission. Leviathan and several subsidiaries of El Paso Energy have been named defendants in actions brought by ▇▇▇▇ ▇▇▇▇▇▇▇▇ on behalf of the United States Government under the False Claims Act. Generally, the complaints allege an industry-wide conspiracy to underreport the heating value as well as the volumes of the natural gas produced from federal and Indian lands, thereby depriving the United States Government of royalties. Leviathan and El Paso Energy believe the complaint is without merit, and will not have a material adverse effect on Leviathan's consolidated financial position, results of operations or cash flows. Leviathan is a defendant in a lawsuit filed by Transco Gas Pipe Line Corporation ("Transco"). Transco alleges that a platform space agreement entered into on June 28, 1994, with Leviathan grants Transco the right to expand its faciliti...

Farmout. In October 1999, we farmed out our working interest in the Prince Field to El Paso Production. Under the terms of the farmout agreement, our net overriding royalty interest in the Prince Field increased to a weighted average of approximately 9 percent. Once El Paso Production recoups the costs associated with its drilling and completion activities on the field, we can convert our royalty interest into a 30 percent undivided working interest. EL PASO ENERGY PARTNERS, L.P. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) Other In ▇▇▇▇, ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇ announced its intent to reserve its remaining costs associated with certain of its ▇▇▇▇▇ as a result of production problems. Accordingly, we recorded a charge totaling $21.2 million in the consolidated statements of operations. This charge consisted of approximately $6.4 million to reserve our investment in certain gathering facilities and other assets associated with these properties, approximately $3.8 million to fully accrue its abandonment obligations associated with the gathering facilities serving these properties, approximately $9.1 million to reserve its noncurrent receivable related to the prepayment of the demand charge obligations under certain agreements, and approximately $1.9 million to accrue certain abandonment obligations associated with its Viosca ▇▇▇▇▇ and Garden Banks properties. During 1998, we abandoned our ▇▇▇▇▇ Bank flowlines at a cost of $2.9 million and recorded a credit to impairment of $1.1 million, which represented the excess of the accrued costs over the actual costs incurred associated with the abandonment of the flowlines.