Common use of Initial Test Clause in Contracts

Initial Test. WELL ----------------- On or before August 31, 2006, Newfield shall commence actual drilling operations for the West Cameron 593 (OCS-G 02023) No. 5 Well at an approximate surface location of 3,850' FSL and 3,650' Newfield Exploration Company 363 N. Sam Houston Pkwy E. Suite 2020 Houston, Texas 77060 (281) ▇47-6000 Fax (281) 405-4242. WC 593 Farmout Agreement ▇▇▇▇ ▇, ▇▇▇▇ ▇▇▇▇ ▇ FEL ▇▇ ▇▇▇▇ ▇▇▇▇▇▇n 593 and bottom-hole location of 3,850' FSL and 3,650' FEL of West Cameron 593 ("Initial Test Well"). The Initial Test Well shall be drilled to an approximate depth of 12,700' MD/TVD, or a depth sufficient to test the "K-1" Sand Horizon as seen at 13,239' - 13,367' MD on that certain Induction Spherically Focused/Sonic Log for the OCS-G 02023 No. A-5 Well (API No. 17-702-40398-00), whichever depth is shallower ("Contract Depth"). The Initial Test Well, Additional Well or any Substitute Well (defined in Article II below) drilled under the terms of this Agreement, shall be drilled free of any cost and/or liability of any Kind or character to Farmors, and all risk, liability, costs or expenses incurred in connection with drilling, testing, completing, and associated tie-in of said well or wells and/or plugging or abandoning said well or wells shall be born▇ ▇▇▇ely by Newfield, except as provided below. Newfield shall not be obligated to drill or commence drilling the Initial Test Well or any other well under the terms of this Agreement. If Newfield fails to commence drilling the Initial Test Well, Newfield will suffer no penalty other than the forfeiture of all rights under this Agreement.

Initial Test. WELL ----------------- Well ----------------------------- 3.1 On or before August 31, 2006, Newfield shall commence actual drilling operations for the West Cameron 593 (OCS-G 02023G-02023) No. 5 Well at an approximate surface location of 3,850' FSL and 3,650' Newfield Exploration Company 363 N. Sam Houston Pkwy E. Suite 2020 Houston, Texas 77060 (281) ▇47-6000 Fax (281) 405-4242. WC 593 Farmout Agreement ▇▇▇▇ ▇, ▇▇▇▇ ▇▇▇▇ ▇ FEL ▇▇ ▇▇▇▇ ▇▇▇▇▇▇n of West Cameron 593 and bottom-hole location of 3,850' FSL and 3,650' FEL of West Cameron 593 ("Initial Test Well"). The Initial Test Well shall be drilled to an approximate depth of 12,700' MD/TVD, or a depth sufficient to test the "K-1K-l" Sand Horizon as seen at 13,239' - 13,367-13,367' MD on that certain Induction Spherically Focused/Sonic Log for the OCS-G 02023 No. A-5 Well (API No. 17-702-40398-00), whichever depth is shallower ("Contract Depth"). 3.2 Ridgewood shall bear its proportionate share of the Newfield Employee Overriding Royalty Interest of 1.00% ("Newfield ORRI"). The dry hole well cost for the Initial Test Well, Additional Well or any Substitute is estimated to be $13,786,874.00 ("Dry Hole Cost") as outlined on the drilling authorization for expenditure ("AFE") for the Initial Test Well (defined in Article II below) drilled under the terms attached hereto as Exhibit "D". By its execution of this Agreement, shall be drilled free of any cost and/or liability of any Kind or character to Farmors, and all risk, liability, costs or expenses incurred Ridgewood has approved the AFE. 3.3 Casing Point is defined as that point in connection with drilling, testing, completing, and associated tie-in of said well or wells and/or plugging or abandoning said well or wells shall be born▇ ▇▇▇ely by Newfield, except as provided below. Newfield shall not be obligated to drill or commence drilling the Initial Test Well or any other well under the terms of this Agreement. If Newfield fails to commence drilling time when the Initial Test Well, Newfield will suffer no penalty or substitute well therefor, has been drilled to the Contract Depth, appropriate tests have been performed and a recommendation is made to (i) set casing and complete the well, (ii) plug and abandon the well or (iii) conduct other than operations as provided within the forfeiture priority of all operations outlined within the Operating Agreement. 3.4 If the Initial Test Well is either, i) unable to reach the Contract Depth due to encountering domal material, heaving shale, saltwater, salt or other impenetrable substance, or suffers any adverse condition (mechanical, structural, stratigraphic or otherwise) in drilling said well, which substance or condition cannot be overcome at a reasonable cost by means considered customary or ordinary in the industry; or, ii) plugged and abandoned as a dry hole, then any Party shall have the right to propose a substitute well in the same manner as provided for hereinabove. Each Party shall have the option, but not the obligation, to participate in such substitute well; however, if a Party elects not to participate in a substitute well, it shall forfeit its rights under this Agreement, and in the Farmout Agreement. If actual drilling operations are commenced on the substitute well within ninety (90) days from the date of rig release of the Initial Test Well, then said well shall be considered the Initial Test Well for purposes of this Agreement.