SUBSTITUTE TEST WELL Sample Clauses
The SUBSTITUTE TEST WELL clause allows a party, typically an operator in an oil and gas agreement, to designate a different well as the test well if the originally planned well cannot be drilled or completed as intended. In practice, this clause outlines the conditions under which a substitute well may be selected, such as location, depth, or timing, and may require notice to or approval from other parties involved. Its core function is to provide flexibility in exploration operations, ensuring that unforeseen issues with the initial test well do not halt the progress of the project or jeopardize contractual obligations.
SUBSTITUTE TEST WELL. If the initial drilling is abandoned prior to reaching contract depths due to heaving shale, saltwater flow, rock salt, dome formation, lost circulation, impenetrable formation, mechanical difficulty, or other conditions rendering further drilling impractical, any party who participated in drilling the Well shall have the option, but not the obligation, to propose and drill a substitute well (hereinafter referred to a “Substitute Test Well”). The parties who participate drilling the Well shall have the right to participate in other zones of said Well and/or drilling the Substitute Test Well by following the same procedure and the same elections set forth in Section III of this Agreement for the initial Well.
SUBSTITUTE TEST WELL. In the event impenetrable conditions which render further drilling impracticable are met prior to reaching the Objective Depth in the Test Well, then, subject to the provisions of Section 5 above, for a period of ninety (90) days after making the election, either Party shall have the right to drill a substitute Test Well to the Objective Depth on the Leases or on lands pooled therewith. The substitute Test Well shall be drilled under the same terms as the Test Well and the substitute Test Well shall be deemed to be the Test Well for all purposes under this Agreement.
SUBSTITUTE TEST WELL. In the event that, prior to reaching the Objective Depth, Ironhorse should encounter conditions which make further drilling imprudent, which conditions would cause a prudent operator to abandon the Well, Operator shall have the right, but not the obligation, within sixty (60) days after {A0046234.DOC} abandonment of the Initial Test Well, to commence a Substitute Test Well at a location mutually agreed to among the Operator and those Participants who elect to participate in such Substitute Test Well. In such case, each Participant shall have the election, to be exercised within forty-eight (48) hours after an election has been made to abandon the Initial Test Well and drill a Substitute Test Well, to participate in the drilling of the Substitute Test Well. Operator shall provide an AFE for the cost of drilling the Substitute Test Well to the Objective Depth, and shall invoice each consenting Participant for such costs, subject to a credit for any unused portion of the initial cash advance by such Participant, which invoice will be due and payable within five (5) days of receipt. Any Participant electing not to participate in such Substitute Test Well shall forfeit its interest in the Prospect and shall promptly furnish Operator with an assignment of its interest to Operator, to be distributed by Operator to those Participants who do elect to participate in the Substitute Test Well.
SUBSTITUTE TEST WELL. If, while drilling any well provided for herein, Operator encounters impenetrable substances or conditions, including the loss of the hole due to mechanical difficulties, which in the opinion of a reasonably prudent operator under the same or similar conditions would render further drilling impractical or hazardous, and such conditions prevent further drilling of the well, Participants, or any of them, shall have the right, but not the obligation, to participate in drilling a “Substitute Well” in order to reach the objective depth, provided actual drilling of the Substitute Well is commenced within ninety (90) days after the release of the drilling rig from the previous well. Any Substitute Well shall be drilled pursuant to all the terms and conditions of this Agreement.
SUBSTITUTE TEST WELL. In the event conditions render further re-entry operations impracticable prior to reaching the Objective Depth in the Test Well, then, for a period of ninety (90) days after making the election, either Party shall have the right to propose the drilling of a substitute Test Well to the Objective Depth on the Leases or on lands pooled therewith. If Participant elects to participate in drilling the substitute Test Well, the substitute Test Well shall be drilled under the same terms as the Test Well and the substitute Test Well shall be deemed to be the Test Well for all purposes under this Agreement.
SUBSTITUTE TEST WELL. In the event Impenetrable Conditions which render further drilling impracticable are met prior to reaching the Objective Depth in the Test Well, then, subject to the provisions of Section 1 above, for a period of ninety (90) days after making the election, either Party shall have the right to drill a substitute Test Well to the Objective Depth on the Leases or on lands pooled therewith. The substitute Test Well shall be drilled under the same terms as the Test Well and the substitute Test Well shall be deemed to be the Test Well for all purposes under this Agreement. If both Parties elect to drill the substitute Test Well, then such well shall be drilled by ▇▇▇▇-▇▇▇▇▇. If neither Party elects to drill the substitute Test Well or if only ▇▇▇▇-▇▇▇▇▇ elects to drill the substitute Test Well, then this Agreement shall terminate. If Participant is the only Party electing to drill the substitute Test Well, then it shall have the right to do so and if it is drilled to the Objective Depth, Participant shall earn an assignment of 100% of ▇▇▇▇-▇▇▇▇▇'▇ right, title and interest in and to the Lease(s) and the well shall not be subject to the provisions of the JOA), subject to the reservation of the overriding royalty interest described in Section 5 below. In such event, the Leases and the well shall no longer be subject to the provisions of the JOA.