Initial Well. The Operator shall serve an Operation Notice to the Parties for the drilling of the Initial Well.
Initial Well. The Operator shall serve an Operation Notice to the Parties for the drilling of the Initial Well. Notwithstanding the provisions for Commencement in Clause 10.03 of the Operating Procedure, the Parties agree that Commencement of the Initial Well shall occur on or before the Obligation Date. Except as otherwise provided in the preceding sentence, the Operating Procedure shall apply to the Initial Well.
Initial Well. Within 120 days of delivery of the final processed/inverted Data from the 3-D Survey, Buyer shall elect either: (i) to participate in the drilling and completion of and pay, to the extent of the Buyer Promoted Interest, the actual costs of the Initial Well through completion but not equipping for production, the location and drilling objectives thereof which shall be selected at the discretion of Buyer in consultation with Seller; however the disproportionate cost payment shall have a cap of 110% of the agreed AFE costs for the Initial Well (the “Cap”), and Buyer shall only be responsible for the Buyer Working Interest share of any costs in excess of the Cap and Seller shall be responsible for the Seller Working Interest share of any costs in excess of the Cap; or (ii) not to drill the Initial Well in which case Buyer shall retain a Six and Two-Thirds Percent (6 2/3%) Working Interest in the AMI (“Buyer New Interest”), in consideration for paying the Buyer Promoted Interest share of the costs for the 3-D Survey, and reassign a Seven and One-Twelfth Percent (7 1/12%) Working Interest in the AMI to Seller from the Buyer Working Interest. In such event, the Parties shall agree on an initial prospect area, which will include potentially productive acreage in and around the Initial Well location and Buyer will retain 6 2/3% in such initial prospect area. Seller may farm-out or otherwise dispose of the reassigned interest to third parties at its discretion. If Seller farms out at least a 42.5% working interest in the Initial Well, then Buyer shall agree either to participate in the drilling of the Initial Well, to the extent of the Buyer New Interest, or farm out under the same terms that Seller negotiates with a third party or parties. If Buyer participates to the extent of the Buyer New Interest, such participation shall be governed by the terms of the Operating Agreement. If Buyer makes an election pursuant to (i) above to participate in the drilling and completion of the Initial Well to the extent of the Buyer Promoted Interest share of the costs thereof, then Seller shall provide Buyer an invoice (or cash call) for Buyer’s share of the costs of the Initial Well in the estimated amount of the expense to be incurred during the next succeeding month. Buyer shall fund such invoice (or cash call) within fifteen (15) days upon receipt thereof. During the conduct of operations of the Initial Well, Seller shall timely provide Buyer, via email, copies of all daily d...
Initial Well. Following Petrogen's signing and delivery of the Assignment and Nortex's payment of the Cash Consideration, Petrogen and Nortex will agree upon a location on the Leases and a spud date for the drilling of a well ("INITIAL WELL") to test the Miocene formation. Such agreement shall be memorialized in a detailed Authority for Expenditure ("AFE"). Nortex will pay fifty percent of eight-eighths (50% of 8/8) of the costs for the Initial Well until it is either plugged and abandoned as a dry hole or completed and producing into the tanks or a sales pipeline at or above the Miocene formation. To the extent that costs for the Initial Well exceed one-hundred ten percent (110%) of the AFE'd costs, Nortex will pay only thirty-seven and one-half percent (37.5%) of the costs that exceed one-hundred ten percent (110%) of the costs incurred in drilling and completing the Initial Well. After the Initial Well, Nortex will pay its thirty-seven and one-half percent of eight-eighths (37.5% of 8/8) share of all operations on the Leases.
Initial Well. The Well Program is expected to commence with the reentry of the Section 80 Well (API #42-371-30774) (the “Initial Well”) promptly after the closing of the transactions contemplated hereunder (the “Closing”). Madoff will evaluate the performance of the Initial Well after the drilling, re-entry and completion thereof, at which time Madoff will determine its interest in continuing the Well Program. Madoff shall provide Pantera with written notice of its determination within 5 days after receipt of data relating to 30 days production from the Initial Well. If Madoff elects to terminate its participation in the Well Program, it shall have no further liability or obligation under this Agreement or the Well Program.
Initial Well. WEJCO and Participant have agreed to re-enter the Xxxxxxx H-1, to a depth of approximately 3400 feet or to a depth that will adequately tests the Lower Xxxxxx Series; at a legal location within the boundaries of the Xxxxxxx English Survey, Xxxxx County, Texas in accordance with the terms and conditions herein. Operator hereby agrees to commence, or cause to be commenced, operations for the Initial Well as soon as practical after all interest has been placed and all funds have been received; and once operations are commenced, to prosecute the same with due diligence and in a good and workmanlike manner to a depth as the joint owners may deem necessary to adequately test the previously mentioned Xxxxxx Series as shown in the well log of the Wejco #H1 Xxxxxxx well, provided to the Participant. Such well shall be evaluated in accordance with reasonable and prudent Operator standards. Operator will manage all engineering services, including drilling and work over rigs, logging, cementing, perforating and any testing of the Initial Well and any Subsequent Xxxxx drilled on the lease and included within the Prospect AMI.
Initial Well. On or before May 1, 2009 (“Spudding Deadline”), FARMEE shall commence or cause to be commenced the actual drilling (“spudding”) of a well, hereinafter called the “Initial Well,” at a location of FARMEE’S choice within the Farmout Area. The location selected by FARMEE will be a legal location or an exception location approved by the governmental agency authorized to issue drilling permits. Subject to the provisions of this Agreement, in the event that FARMEE fails to timely commence the Initial Well and/or fails to drill said well to the Contract Depth, as defined below, then this Agreement shall automatically terminate, and FARMEE shall have no rights to earn any leasehold interest in and to the Farmout Area from FARMOR.
Initial Well. The initial well under this agreement has already been drilled, and this agreement shall apply to all other operations within the Luther Prospect. The drilling of the Initial Well and the participation in it by all parties is obligatory, subject to Article VI.C.1. as to participation in Completion operations and Article VI.F. as to termination of operations, and Article XI as to occurrence of force majeure.
Initial Well a. On or before the [___] day of [________], 2011, Operator shall commence the drilling of a well for oil and gas at the location shown on Exhibit “E” attached hereto and made a part hereof and shall thereafter continue the drilling of the well with due diligence to [the Completion Point as defined in, and in accordance with, _______________], unless granite or other practically impenetrable substance or condition in the hole, which renders further drilling impractical, is encountered at a lesser depth, or unless all parties agree to complete or abandon the well at a lesser depth.
Initial Well. You shall commence operations for the drilling of a well (sometimes referred to as “Initial Well”), on or before twelve (12) months from the date of Farmor’s execution of this agreement, time being of the essence, at a mutually agreeable, regular location on the Farmout Area, and shall drill with due diligence and in a good and workmanlike manner to a depth of 9,000 feet below the surface or a depth sufficient to adequately test the Yegua Formation, whichever depth is shallower; said depth being sometimes hereinafter referred to as “Objective Depth.” You agree to drill the Initial Well to the Objective Depth in a good faith effort to discover oil and/or gas and to test adequately all oil and/or gas-bearing formations encountered. You agree to complete the Initial Well either as capable of producing oil and/or gas in paying quantities or to properly plug and abandon said well, in compliance with applicable rules and regulations, as a dry hole within one hundred twenty (120) days from commencement of operations on such well. You shall drill the Initial Well to completion, free of any cost or liability to us, whether completed as a well capable of producing oil and/or gas in paying quantities, or plugged and abandoned as a dry hole. In the event you fail to reach the Objective Depth in the Initial Well due to mechanical failure, the encountering of impenetrables or similar conditions rendering further drilling impracticable so that a reasonable and prudent operator would not continue the drilling of the well, you shall have the right to abandon such well and to commence operations at a mutually agreeable, regular location for the drilling of another well (sometimes referred to as “Substitute Well”) to the Objective Depth. If you do choose to drill such Substitute Well, you must commence such operations within thirty (30) days after such abandonment, and proceed to drill in a diligent manner to attain the Objective Depth. The Substitute Well shall be drilled subject to all the terms, provisions, and rights applicable to the drilling of the Initial Well,
