Common use of Test Well Clause in Contracts

Test Well. (a) On or before June 1, 2012 Farmee shall, subject to rig availability, surface accessibility and regulatory approval and in accordance with Article 3.00 of the Farmout & Royalty Procedure, spud the Test Well at I 02/05-29-033-02W4/00 on the Farmout Lands and continuously drill down to Contract Depth. Farmee shall while drilling to Contract Depth cut two full bore cores one each from the Viking and ▇▇▇▇▇▇ formations. Farmee shall also run a DST in the Viking formation. In the event that hydrocarbons are noted in the core and geological cuttings in the ▇▇▇▇▇▇, a DST will then be run in the ▇▇▇▇▇▇. A decision will be mutually reached between the parties whether or not to continue with drilling a lateral in the ▇▇▇▇▇▇ section. If the ▇▇▇▇▇▇ formation proves non-productive or uneconomic, Farmee shall cut a window to enable for the drilling of a lateral into the Viking formation. In either event, the proposed lateral would be drilled to a minimum of 1,000 meters to a maximum of 1,200 meters of horizontal length. In either event, the total measured depth of the Test Well shall be 1,950 meters for the Test Well. Fannee shall complete the Test Well in the ▇▇▇▇▇▇ or Viking formation within the Farmout Lands prospective of containing petroleum and natural gas and equip or abandon same. (b) Farmor shall be provided with all well information pertaining to the Test Well on a current and confidential basis, as outlined in Clause 9.00 of the Farmout & Royalty Procedure. All risks and expenses associated with the Test Well shall be borne solely by Fannee 100%, and the Farmor shall be entirely free of any such costs, risk and expense.