Common use of Test Well Clause in Contracts

Test Well. 3.1 Newfield will commence drilling operations for the [REDACTED] No. 1 Well (“Test Well”) on or before December 1, 2008. The Test Well is planned to be drilled in accordance with Newfield’s AFE No. 16964 attached hereto as Exhibit “B” (“AFE”). The Test Well will be drilled to an approximate depth of 17,254’ MD 17,000 TVD, or a depth sufficient to test the “Cib Op Sands”, whichever depth is shallower (“Contract Depth”). 3.2 As additional consideration for the opportunity to earn its Working Interest in the Contract Area, the Parties will pay the following percentages of the costs to drill the Test Well to Casing Point (as described in Article 3.3 below): Newfield 40.00000% Ridgewood 60.00000% The dry hole well cost for the Test Well is estimated to be $30,227,466.00 (“Dry Hole Cost”) as outlined on the above referenced drilling AFE. Ridgewood’s disproportionate cost sharing will cease once cumulative costs and expenses for the Test Well, and if drilled, the substitute well therefore, exceeds 110% of $23,500,000.00 as outlined in Letter Agreement dated February 12, 2008 or upon reaching Casing Point, whichever occurs first. Thereafter Newfield will bear its 60% and Ridgewood will bear its 40% share of subsequent costs, subject to the non-consent rights set out in the Operating Agreement. Additionally, within 10 days prior to spud, but no earlier, Newfield shall invoice Ridgewood and Ridgewood shall timely pay its proportionate share of lease sunk costs equal to $1,611,560.00 ($4,028,900.00 x 40.00% Working Interest). 3.3 Casing Point is defined as that point in time when the Test Well, or substitute well therefor, has been drilled to the Contract Depth, and all open-hole logs and all appropriate tests have been performed and delivered to the Parties, and a recommendation is made to (i) set casing and complete the well, (ii) plug and abandon the well or (iii) conduct other operations as provided within the priority of operations outlined within the Operating Agreement. 3.4 If the Test Well is either, i) unable to reach the Contract Depth due to encountering domal material, heaving shale, saltwater, salt or other impenetrable substance, or suffers any adverse condition (mechanical, structural, stratigraphic or otherwise) in drilling said well, which substance or condition cannot be overcome at a reasonable cost by means considered customary or ordinary in the industry; or, ii) plugged and abandoned as a dry hole, then any Party shall have the right to propose a substitute well in the same manner as provided for hereinabove. Ridgewood shall have the option, but not the obligation, to participate in such substitute well; however, if Ridgewood elects not to participate in a substitute well, it shall forfeit its rights under this Agreement. If actual drilling operations are commenced on the substitute well within ninety (90) days from the date of rig release of the Test Well, then said well shall be considered the Test Well for purposes of this Agreement.

Test Well. 3.1 Newfield (a) On behalf of Farmee and Participant, Participant, between the period commencing on May 26, 2011 (or sooner if practicable) and ending on July 15, 2011, (subject to reasonable surface access, rig availability and regulatory approval), will commence drilling operations for Spud the [REDACTED] No. 1 Test Well at a location in 1-35-75-8-W6M on the Farmout Lands; (“Test Well”b) on On or before December 1May 16, 2008. The 2011, Farmee shall pay to Participant the sum of $305,753.00, representing 100% of Farmee’s 80% share of the Test Well is planned to be drilled Drilling AFE costs; (c) For clarity, the participating interests of Farmee and Participant, through drilling, completion (or abandonment), equipping and tie-in accordance with Newfield’s AFE No. 16964 attached hereto as Exhibit “B” (“AFE”). The if required for production) of the Test Well will be drilled to an approximate depth of 17,254’ MD 17,000 TVD, or a depth sufficient to test the “Cib Op Sands”, whichever depth is shallower (“Contract Depth”). 3.2 As additional consideration for the opportunity to earn its Working Interest in the Contract Area, the Parties will pay the following percentages of the costs to drill the Test Well to Casing Point (as described in Article 3.3 below): Newfield 40.00000be: Farmee 80% Ridgewood 60.00000Participant 20% The dry hole well cost for the Test Well is estimated to be $30,227,466.00 (“Dry Hole Cost”) as outlined on the above referenced drilling AFE. Ridgewood’s disproportionate cost sharing will cease once cumulative costs and expenses for the Test Well, and if drilled, the substitute well therefore, exceeds 110% of $23,500,000.00 as outlined in Letter Agreement dated February 12, 2008 or upon reaching Casing Point, whichever occurs first. Thereafter Newfield will bear its 60% and Ridgewood will bear its 40% share of subsequent costs, subject to the non-consent rights set out Operating Procedure, except that the provisions of Clause 9.03 of the Operating Procedure will be deemed not to apply during the period prior to earning. For clarity, in the Operating Agreement. Additionally, within 10 days prior to spud, but no earlier, Newfield shall invoice Ridgewood and Ridgewood shall timely pay its proportionate share of lease sunk costs equal to $1,611,560.00 ($4,028,900.00 x 40.00% Working Interest). 3.3 Casing Point is defined as event that point in time when the Test Well, or substitute well therefor, has been drilled to the Contract Depth, and all open-hole logs and all appropriate tests have been performed and delivered to the Parties, and a recommendation is made to (i) set casing and complete the well, (ii) plug and abandon the well or (iii) conduct other operations as provided within the priority of operations outlined within the Operating Agreement. 3.4 If the Test Well is either, i) unable to reach the Contract Depth due to encountering domal material, heaving shale, saltwater, salt or other impenetrable substance, or suffers any adverse condition (mechanical, structural, stratigraphic or otherwise) in drilling said well, which substance or condition cannot be overcome at a reasonable cost by means considered customary or ordinary in the industry; or, ii) plugged and abandoned as a dry hole, then any Party shall have the right to propose a substitute well in the same manner as provided for hereinabove. Ridgewood shall have the option, but not the obligation, to participate in such substitute well; however, if Ridgewood Farmee elects not to participate in a substitute wellthe setting of casing in the Test Well if proposed by Participant, Farmee will be deemed to have forfeited its right to earn an interest in the Farmout Lands on which the non-participation election applies, and Farmee will have no further rights with respect to that Test Well or the Farmout Lands on which such Test Well was drilled; and the costs relating to the setting of production casing (less the costs relating to the abandonment of the Test Well if it shall forfeit its rights under this Agreement. If actual drilling operations are commenced on was not cased) would be to the substitute well within ninety credit of Farmee. (90d) days from Subject to Article 3.00 of the date of rig release of Farmout & Royalty Procedure (amended as necessary), Farmee, upon having drilled, completed (or abandoned), equipped and tied-in (if required for production) the Test Well, then said well shall be considered as to an 80% participating interest, will have earned a 56% undivided interest in the Farmout Lands, to the base of the deepest formation penetrated and fully evaluated in the Test Well, subject to the Encumbrances, so that the Test Well for purposes of this Agreementand the Farmout Lands will be held as follows: Farmee 56% Farmor 24% Participant 20% (e) Upon Farmee earning an interest in the Farmout Lands as set forth in subclause 4(d), the Test Well and the Farmout Lands will be operated pursuant to the Operating Procedure.

Test Well. 3.1 4.1 Newfield will commence has commenced drilling operations for the [REDACTED] West Cameron Block 149 (OCS-00253) No. 1 8 Well (“Test Well”) on or before December 1, 2008). The Test Well is planned to be drilled in accordance with Newfield’s AFE No. 16964 14176 attached hereto as Exhibit “BC” (“AFE”). The Test Well will be drilled to an approximate depth of 17,25410,300’ MD 17,000 MD/TVD, or a depth sufficient to test the “Cib Op Sands▇▇▇ ▇ ▇▇▇▇▇”, whichever depth is shallower (“Contract Depth”). 3.2 4.2 As additional consideration for the opportunity to earn its Working Interest in the Contract Area, the Parties will pay the following percentages of the costs to drill the Test Well to Casing Point (as described in Article 3.3 4.3 below): Newfield 40.0000066.66667% Ridgewood 60.0000033.33333% The dry hole well cost for the Test Well is estimated to be $30,227,466.00 7,748,266.00 (“Dry Hole Cost”) as outlined on the above referenced drilling AFE. Ridgewood’s disproportionate cost sharing will cease once cumulative costs and expenses for the Test Well, and if drilled, the substitute well therefore, exceeds 110105% of $23,500,000.00 as outlined in Letter Agreement dated February 12, 2008 the Dry Hole Cost for the Test Well or upon reaching Casing Point, whichever occurs first. Thereafter Newfield will bear its 6075% and Ridgewood will bear its 4025% share of subsequent costs, subject to the non-consent rights set out in the Operating Agreement. Additionally, within 10 days prior to spud, but no earlier, Newfield shall invoice Ridgewood and Ridgewood shall timely pay its proportionate share of lease sunk costs equal to $1,611,560.00 ($4,028,900.00 x 40.00% Working Interest). 3.3 4.3 Casing Point is defined as that point in time when the Test Well, or substitute well therefor, has been drilled to the Contract Depth, and all open-hole logs and all appropriate tests have been performed and delivered to the Parties, and a recommendation is made to (i) set casing and complete the well, (ii) plug and abandon the well or (iii) conduct other operations as provided within the priority of operations outlined within the Operating Agreement. 3.4 4.4 If the Test Well is either, i) unable to reach the Contract Depth due to encountering domal material, heaving shale, saltwater, salt or other impenetrable substance, or suffers any adverse condition (mechanical, structural, stratigraphic or otherwise) in drilling said well, which substance or condition cannot be overcome at a reasonable cost by means considered customary or ordinary in the industry; or, ii) plugged and abandoned as a dry hole, then any Party shall have the right to propose a substitute well in the same manner as provided for hereinabove. Ridgewood shall have the option, but not the obligation, to participate in such substitute well; however, if Ridgewood elects not to participate in a substitute well, it shall forfeit its rights under this Agreement. If actual drilling operations are commenced on the substitute well within ninety (90) days from the date of rig release of the Test Well, then said well shall be considered the Test Well for purposes of this Agreement.