PROSPECT EVALUATION Sample Clauses

PROSPECT EVALUATION. 4.1 Primary Prospect Well Cost Sharing. ----------------------------------- Chevron shall have the sole right and obligation to propose to Company the operations for the drilling of an Initial Test Well on the Primary Prospect listed on Exhibit "A". It is anticipated drilling operations will commence on or before December 1, 2006 for said Primary Prospect (Mussel Beach), subject, however, to receipt of all regulatory and permitting approvals, weather delay, delivery of materials, (e.g. pipe) and rig availability. When proposing an Initial Test Well for the Primary Prospect, Chevron shall provide Company, a formal AFE detailing the specifications of the well to be drilled for Company's information on or before thirty (30) days prior to commencement of actual drilling operations. The Parties will have and each undertakes, by the execution of this Agreement, the obligation to participate in the proportions provided for herein, but subject to those certain provisions of the applicable Operating Agreement and this Agreement, for the drilling of an Initial Test Well of the Primary Prospect listed on Exhibit "A" and further subject to Company's receipt of a formal Chevron AFE to drill the Initial Test Well for the Primary Prospect. For the Primary Prospect listed in Exhibit "A", Company will have and undertakes the obligation of paying a disproportionate share of the Well Costs for the Initial Test Well based on the Company BCP Interest for that Prospect as listed on Exhibit "A" until Casing Point or until one hundred twenty percent (120%) of the estimated funds to drill the Initial Test Well, whichever occurs first, as stated in the AFE provided by Chevron under this Article 4.1, have been spent in the drilling of the Initial Test Well. Upon the earlier of the two conditions stated directly above being met by Company, Company will have and will undertake the obligation of paying and bearing its share of any additional or further cost, risk or expense associated with the Initial Test Well to Casing Point, based on the Company ACP Interest for the Primary Prospect, upon which the Initial Test Well is located, and subject to Company retaining all of its Company BCP Interest obligations for that Prospect, including the obligation of Company to bear its share of the plug and abandonment costs at the Company BCP Interest if the Initial Test Well is not completed for production. The Parties will each have the option and election to participate in the drilling of a Subs...