Common use of SUBSTITUTE WELL and SUBSEQUENT Clause in Contracts

SUBSTITUTE WELL and SUBSEQUENT. WELL(S) -------------------------------------- If, during the drilling of the Initial Test Well, or a Substitute Well (defined in this paragraph), Newfield is unable to reach Contract Depth due to conditions beyond Newfield's control, which in the opinion of a reasonably prudent Operator under the same or similar conditions would render further drilling impracticable or hazardous, and such condition prevents further drilling of the well, Newfield may commence a "Substitute Well", provided actual drilling of this Substitute Well is commenced within ninety (90) days after release of the drilling rig used for the Initial Test Well or any Substitute Well, and is drilled pursuant to all the terms and provisions of this Agreement applicable to the well for which it is substituted. If the Initial Test Well or any Substitute Well therefore, reaches Contract Depth but does not qualify as an Earning Well as described in Section III below, Newfield shall have the continuing right to drill "Subsequent Well(s)" on the Contract Area provided that each such Subsequent Well shall be subject to all the terms and provisions of this Agreement, and further provided that Newfield commences actual drilling operations on such Subsequent Well within ninety (90) days from plugging and abandonment of the prior well. In the event Newfield does not commence a Substitute Well or Subsequent Well within the applicable ninety (90) day period, this Agreement and Contract Area and all the terms and conditions contained herein shall terminate except for Newfield's obligation to plug and abandon any wells and/or platforms drilled and/or installed on the Contract Area xx Xxwfield, Newfield will have the option to earn rights to deeper depths in the Contract Area by commencing drilling operations on or before one hundred eighty (180) days from the date on which the drilling rig is released from the Earning Well. Any such "Additional Well" to earn the deeper rights shall be drilled in accordance with the terms and conditions of this Agreement. Failure to drill or participate in the drilling of an Additional Well during said period shall result in loss by Newfield of any option to earn such deeper rights. Notwithstanding anything contained herein to the contrary, Newfield shall not have the right to earn any depths below the Deepest Earning Depth (defined in Section III below). Notwithstanding anything herein to the contrary, Newfield shall not have the right to drill any Substitute Well, Subsequent Well or Additional Well from Apache's Eugene Island Block 346 "A" platform ("Platform") located at 3,298' FXX xxx 3,543' FWL of Eugene Island 346.

SUBSTITUTE WELL and SUBSEQUENT. WELL(S) -------------------------------------- If, during the drilling of the Initial Test Well, or a Substitute Well (defined in this paragraph), Newfield is unable to reach Contract Depth due to conditions beyond Newfield's control, which in the opinion of a reasonably prudent Operator under the same or similar conditions would render further drilling impracticable or hazardous, and such condition prevents further drilling of the well, Newfield may commence a "Substitute Well", provided actual drilling of this Substitute Well is commenced within ninety (90) days after release of the drilling rig used for the Initial Test Well or any Substitute Well, and is drilled pursuant to all the terms and provisions of this Agreement applicable to the well for which it is substituted. If the Initial Test Well or any Substitute Well therefore, reaches Contract Depth but does not qualify as an Earning Well as described in Section III below, Newfield shall have the continuing right to drill "Subsequent Well(s)" on the Contract Area provided that each such Subsequent Well shall be subject to all the terms and provisions of this Agreement, and further provided that Newfield commences actual drilling operations on such Subsequent Well within ninety (90) days from plugging and abandonment of the prior well. In the event Newfield does not commence a Substitute Well or Subsequent Well within the applicable ninety (90) day period, this Agreement and Contract Area and all the terms and conditions contained herein shall terminate except for Newfield's obligation to plug and abandon any wells and/or platforms drilled and/or installed on the Contract Area xx XxwfieldXewfield, Newfield will have the option to earn rights to deeper depths in the Contract Area by commencing drilling operations on or before one hundred eighty (180) days from the date on which the drilling rig is released from the Earning Well. Any such "Additional Well" to earn the deeper rights shall be drilled in accordance with the terms and conditions of this Agreement. Failure to drill or participate in the drilling of an Additional Well during said period shall result in loss by Newfield of any option to earn such deeper rights. Notwithstanding anything contained herein to the contrary, Newfield shall not have the right to earn any depths below the Deepest Earning Depth (defined in Section III below). Notwithstanding anything herein to the contrary, Newfield shall not have the right to drill any Substitute Well, Subsequent Well or Additional Well from Apache's Eugene Island Block 346 "A" platform ("Platform") located at 3,298' FXX xxx XXX xxd 3,543' FWL of Eugene Island 346.