Initial Test Wxxxx. (a) Subject to Force Majeure, as defined herein, Buyer commits to (i) drill two (2) initial test wxxxx (each, a “Test Well” and, collectively, the “Test Wxxxx”) on the Initial Acreage or the Mattelin Leases, each Test Well (or a Substitute Well therefor) to be drilled to a depth sufficient to test the Middle Bxxxxx and Three Forks formations (“Objective Depth”) and (ii) to run three (3) thirty foot (30’) core barrels for each Test Well from the top of the Middle Bxxxxx through the top 18 meters, approximately, of the Three Forks formation. Seller shall have the right to review any recovered core, but such recovered core shall be jointly owned by Buyer and Seller and Buyer shall retain possession of such recovered core, as Operator of the Test Wxxxx. Buyer shall use commercially reasonable best efforts to drill each of the two (2) initial Test Wxxxx a minimum lateral length of at least 4,500 feet and comply with the technical requirements set forth on Exhibit G attached hereto. In the event Buyer completes either or both of the Test Wxxxx, Buyer shall perform multi-stage fracture stimulation of such completed Test Well(s); provided, however, that Buyer shall not be required to conduct such fracture stimulation if a reasonable, prudent operator would not conduct such operation for fear of placing the hole, life or property in jeopardy.
Initial Test Wxxxx. The first of the two wxxxx must commence drilling operations (herein defined as the use of suitable rotary equipment at a legal location of Farmee's choice on Said Leases to "spud in said well") and thereafter continuously prosecuting such drilling operations in a diligent and workmanlike manner until the well has been drilled to a depth sufficient to laterally test the Buda Formation with a lateral length of not less than 800 feet (herein referred to as the "Objective Depth") on or before February 1, 2014. Thereafter, a second test well must commence actual drilling operations as previously defined within Twelve (12) months from the date of this Agreement (herein referred to as the "Farmout Term"). The two (2) Horizontal Lateral Buda Test wxxxx shall be located on Said Leases in Cxxxxxxx County, Texas, at Farmee's sole cost and expense, (herein referred to as the "Initial Test Wxxxx") Failure of Farmee to timely commence operations for the drilling of the Initial Test Wxxxx, shall cause this Farmout Agreement to expire, terminate and become of no further force and effect.
