Common use of Test Well Clause in Contracts

Test Well. Farmees shall commence or caused to be commenced, on or before forty-five (45) days from the Effective Date, or, in the event a suitable rig is under contract but cannot commence drilling until after the expiration of such 45 day period, as soon as commercially practicable thereafter (but in no event longer than 90 days) (the “Commencement Date”), actual drilling operations on a well (the “Test Well”) in search of oil and/or gas at any legal location on the Subject Interests/at the location specified on Exhibit A hereto. Thereafter, Farmees shall continue to drill the Test Well with due diligence and in a good and workmanlike manner to a depth sufficient to penetrate and test in a horizontal wellbore the Woodbine formation (the “Objective Depth”); provided that Farmees shall not be precluded from drilling deeper than the Objective Depth. When Farmees have completed drilling operations on the Test Well, Farmees agree that (i) if the Test Well can be completed as a well capable of producing in paying quantities, to be determined at Farmees’ sole discretion, Farmees shall diligently prosecute the completion of the Test Well without unreasonable delays, or (ii) if the Test Well cannot be completed as a well capable of producing in paying quantities, Farmees shall plug and abandon the Test Well in accordance with the terms of the Subject Leases and all applicable laws and regulations. If Farmees do not commence, or cause to be commenced, the actual drilling of the Test Well on or prior to the Commencement Date, Farmees’ right to earn the Assignment hereunder shall terminate and, except as otherwise expressly provided herein, neither Party shall have any further rights or obligations hereunder. As set forth in Section IV, hereinbelow, Richland shall be designated as “Operator” for operations conducted on the Subject Leases. Notwithstanding such designation, any Farmee shall be entitled to commence, or cause to be commenced, actual drilling operations on the Test Well if, in Farmee’s sole discretion based on good-faith belief, Richland is unable or will be unable to commence or cause to be commenced actual drilling operations on the Test Well before the Commencement Date.

Test Well. Farmees shall commence or caused to be commenced, on On or before forty-five November 30, 1999, and subject to receipt of all necessary regulatory approvals (45which Farmee agrees to pursue with reasonable commercial diligence), Farmee, at its sole cost, risk and expense, shall commence, or cause the commencement of, operations for the drilling of a test well ("Test Well") days from at a location of Farmee's choice on the Effective Date, or, Unit and thereafter diligently drill such well to a depth (the "Objective Depth") equal to the statigraphic equivalent of the PB-1 Sand as seen at a depth of -10,225' TVD Subsea in the event ▇▇▇▇▇ Bank 1003 #1 Well, or a suitable rig depth of -10,030' TVD Subsea, whichever is under contract lesser. The Objective Depth shall be a minimum depth, and Farmee shall have the right, but cannot commence drilling until after the expiration of such 45 day periodobligation, as soon as commercially practicable thereafter (but in no event longer than 90 days) (the “Commencement Date”), actual drilling operations on a well (the “Test Well”) in search of oil and/or gas at any legal location on the Subject Interests/at the location specified on Exhibit A hereto. Thereafter, Farmees shall continue to drill the Test Well with due diligence and in a good and workmanlike manner to a depth sufficient deeper depths. In order to penetrate and test in a horizontal wellbore expedite the Woodbine formation (the “Objective Depth”); provided that Farmees shall not be precluded from drilling deeper than the Objective Depth. When Farmees have completed drilling operations on commencement of the Test Well, Farmees agree that (iFarmor has or shall immediately make available for Farmee's use, Farmor's shallow hazard survey(s) if over the Test Well can be completed Farmout Acreage, as a well capable of producing in paying quantitiesas any permitting information pertaining to the Farmout Acreage. In addition, Farmor shall allow Farmee access to be determined at Farmees’ sole discretion, Farmees shall diligently prosecute its personnel to discuss the completion of the Test Well without unreasonable delays, or (ii) if the Test Well cannot be completed as a well capable of producing in paying quantities, Farmees shall plug Farmout Acreage and abandon the Test Well in accordance with the terms of the Subject Leases any and all applicable laws and regulationswell data or information pertaining to the Farmout Acreage. If Farmees do not commenceIn the event that a condition which qualifies as Force Majeure under Section 5.13, or cause to be commencedbelow, prevents Farmee from commencing the actual drilling of the Test Well on or prior before November 30, 1999, then Farmee shall apply for and diligently pursue a further extension of the existing Suspension of Production ("SOP") from the MMS so as to permit the Commencement Datedrilling of the Test Well at a later date. In the event Farmee does not commence the drilling of the Test Well on or before November 30, Farmees’ right 1999, for any reason other than (i) the inability to earn the Assignment hereunder shall terminate and, except as otherwise expressly provided herein, neither Party obtain all necessary permits and regulatory approvals (which Farmee shall have any further rights diligently pursued) or obligations hereunder. As set forth in (ii) a condition that qualifies as Force Majeure under Section IV5.13, hereinbelowbelow, Richland shall be designated as “Operator” for operations conducted on the Subject Leases. Notwithstanding such designation, any Farmee shall be entitled deemed to commencebe in breach of its obligations hereunder, unless Farmee has applied for and been granted a further extension of the SOP from the MMS and drills, or cause causes to be commenceddrilled, actual drilling operations on the Test Well if, in Farmee’s sole discretion based on good-faith belief, Richland is unable or will be unable to commence or cause to be commenced actual drilling operations on the Test Well before the Commencement Dateaccordance with such extension.

Test Well. Farmees shall commence or caused A. Subject to be commencedpermitting, on or before forty-five rig availability, and events of force majeure (45) days from the Effective Date, or, as set out in the event a suitable rig is under contract but cannot commence drilling until after the expiration of such 45 day period, as soon as commercially practicable thereafter (but in no event longer than 90 days) (the “Commencement Date”Section 11), actual drilling operations on a well Foothills Petroleum Operating, Inc. (the hereinafter referred to as “Test WellOperator”) in search of oil and/or gas at any legal location on the Subject Interests/at the location specified on Exhibit A hereto. Thereafter, Farmees shall continue use best efforts to drill the Test Well with due diligence and in a good and workmanlike manner to a depth sufficient to penetrate and test in a horizontal wellbore the Woodbine formation (the “Objective Depth”); provided that Farmees shall not be precluded from drilling deeper than the Objective Depth. When Farmees have completed drilling operations on the Test Well, Farmees agree that (i) if the Test Well can be completed as a well capable of producing in paying quantities, to be determined at Farmees’ sole discretion, Farmees shall diligently prosecute the completion of the Test Well without unreasonable delays, or (ii) if the Test Well cannot be completed as a well capable of producing in paying quantities, Farmees shall plug and abandon the Test Well in accordance with the terms of the Subject Leases and all applicable laws and regulations. If Farmees do not commence, or cause to be commenced, the actual commenced drilling of the operations for a Test Well on the Prospect on or prior before January 31, 2017 (“Contract Spud Date”), to the Commencement Datefollowing bottom hole location: NE/4 of Section 5, Farmees’ right to earn the Assignment hereunder shall terminate andT9S-R11W, except as otherwise expressly provided hereinCalcasieu Parish, neither Party shall have any further rights or obligations hereunderLouisiana; XY coordinates: X = 1314375 and Y = 605000 NAD 27–Louisiana South. As set forth in Section IV, hereinbelow, Richland shall be designated as “Operator” for operations conducted on the Subject Leases. Notwithstanding such designation, any Farmee shall be entitled Failure by Participant to commence, or cause to be commenced, actual drilling operations for a Test Well on or before the Contract Spud Date despite Participant’s best efforts or as a result of an incident of Force Majeure shall not result in a termination of this Agreement or Participant’s rights and obligations hereunder. Said Test Well shall be drilled to the lesser depth of (i) a total vertical depth of 8,300 feet beneath the surface of the ground or (ii) a depth sufficient to test the stratigraphic equivalent of the Nodosaria blanpiedi sand, top of which is found at the measured depths of 8,490 feet (MD) on the electric log of the Labokay Corp 5 Well No. 1 (API No. 1701922252, Serial No. 242300), 17,000 feet total depth, located in Section 4, ▇▇▇▇▇▇▇▇ ▇▇, ▇▇▇ ▇▇▇, ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇ (“Contract Depth”) and thereafter evaluated in accordance with good oil field practices, and depending on the outcome of said evaluation, Operator shall either plug and abandon the Test Well or make a recommendation for a completion attempt. Should Operator make a recommendation for a completion attempt and not recommend to plug and abandon the Test Well, it is agreed and understood that Participant shall pay to Seller the sum of One Hundred Eighty Thousand Dollars ($180,000.00) within thirty (30) days of the Casing Point Election as defined in the OA, which amount shall be considered and construed to be geological and geophysical costs. Prior to the commencement of drilling operations for the Test Well, Operator shall deliver to Seller an Authority for Expenditure (“AFE”) setting forth the estimated costs and expenses in connection with the drilling of the Test Well to Contract Depth (the “Estimated Dry Hole Costs”), which shall include a line item of Twenty-Five Thousand Dollars ($25,000.00) (“Spud Fee”). Seller agrees to pay the Spud Fee if and when it becomes payable under the L▇▇▇▇▇ Seismic Agreement. Except as provided herein, all operations on the Test Well ifshall be conducted in accordance with the OA. The Test Well shall be the same well referred to in the OA as the Initial Well. B. If, in Farmee’s sole discretion based on good-faith beliefduring the drilling of the Test Well, Richland is unable formation conditions, mechanical difficulties, impenetrable substances, or will be unable to commence or cause to be commenced actual other conditions are encountered beyond the control of Operator that make the further drilling operations on of the Test Well impossible or impracticable before reaching Contract Depth, Participant may propose the Commencement Datedrilling of a substitute well for the Test Well (hereinafter referred to as the “Substitute Well”) at a legal location approved by Seller and Participant and the drilling of such Substitute Well shall thereafter be considered the Test Well for all purposes hereof. C. If it becomes necessary to pay delay rentals in order to maintain either of the Leases in effect prior to drilling the Test Well to Contract Depth, the Parties agree to be responsible for and pay 100% of their respective shares of all such delay rentals. Delay rentals which become due prior to reaching Contract Depth in the Test Well shall be borne and paid by the Parties based on their respective interests as set forth on Exhibit “B” under the column titled “WI BPO.” Notwithstanding anything herein, prior to the commencement of operations for the Test Well identified in Section 4 hereinabove, Participant shall pay all delay rentals in a timely manner and in accordance with the terms of the Leases.

Test Well. Farmees shall commence 1. In consideration of the sum of Ten Dollars ($10.00) and other valuable consideration, per acre assigned, which is non-refundable, the receipt of which is hereby acknowledged, FARMEE is given the right to commence, or caused cause operations to be commencedcommenced for, on or before forty-five (45) days from the Effective Date, or, in the event a suitable rig is under contract but cannot commence drilling until after the expiration of such 45 day period, as soon as commercially practicable thereafter (but in no event longer than 90 days) (the “Commencement Date”), actual drilling operations on (i.e. spudding-in) of a well (hereinafter referred to as the “"Test Well”") in search of oil and/or gas (which terms, as used herein, shall mean oil, gas or other related hydrocarbons) at any a legal location to be selected by FARMEE on the Subject Interests/at Farmout Acreage, or on land pooled with the location specified on Exhibit A heretoFarmout Acreage. ThereafterAfter drilling the Test Well, Farmees shall continue to drill FARMEE shall, by such testing and logging as would a reasonably prudent operator under the same or similar circumstances, evaluate the Test Well to determine if a completion attempt should be made. After FARMEE has performed such testing, FARMEE shall determine whether or not an attempt should be made to complete the Test Well as a producer of oil and/or gas or plug and abandon it without making a completion attempt. a. If FARMEE elects to attempt to complete the Test Well and such completion attempt is successful, FARMEE shall cause the Test Well to be equipped for production. b. If FARMEE elects to complete the Test Well and if such completion attempt is unsuccessful, or if FARMEE elects not to complete the Test Well as a producer of oil and/or gas, ▇▇▇▇▇▇ will cause the Test Well to be plugged in accordance with due diligence the rules and in regulations of the Oklahoma Corporation Commission. 2. If formations, conditions, or mechanical wellbore problems are encountered which would render further drilling operations on the Test Well by a good and workmanlike manner to a depth sufficient to penetrate and test in a horizontal wellbore the Woodbine formation (the “Objective Depth”); provided that Farmees shall reasonably prudent operator impracticable or which cannot be precluded from penetrated by the use of customary drilling deeper than procedures or techniques (hereinafter referred to as "impenetrable conditions"), FARMEE shall plug and abandon the Objective DepthTest Well. When Farmees In the event impenetrable conditions are encountered, ▇▇▇▇▇▇ shall have completed the right to extend the terms of this agreement if FARMEE commences a Substitute Test Well at a legal location of FARMEE's choice on the Farmout Acreage, or on land pooled with the Farmout Acreage, within 90 days after cessation of drilling operations on the Test Well. In the event FARMEE drills the Substitute Test Well, Farmees agree that (i) if the Test Well can same shall be completed as a well capable of producing in paying quantities, to be determined at Farmees’ sole discretion, Farmees shall diligently prosecute the completion of the Test Well without unreasonable delays, or (ii) if the Test Well cannot be completed as a well capable of producing in paying quantities, Farmees shall plug and abandon the Test Well drilled in accordance with the terms of and conditions contained herein which are applicable to the Subject Leases and all applicable laws and regulationsTest Well. 3. If Farmees do not commencethe Test Well, or cause to be commencedSubstitute Test Well, results in a dry hole, FARMEE, at its option, may drill another well at a legal location on the actual Farmout Acreage, or on land pooled with the Farmout Acreage, under the conditions herein stipulated, provided operations for the drilling of such well shall be commenced within not more than 90 days following the date that drilling operations cease in the well drilled hereunder resulting in a dry hole. 4. The FARMEE shall be liable for all surface damages in drilling the Test Well on or prior to the Commencement Date, Farmees’ right to earn the Assignment hereunder shall terminate and, except as otherwise expressly provided herein, neither Party shall have any further rights or obligations hereunder. As set forth in Section IV, hereinbelow, Richland shall be designated as “Operator” for operations conducted on the Subject Leases. Notwithstanding such designation, any Farmee shall be entitled to commence, or cause to be commenced, actual drilling operations on the Substitute Test Well if, in Farmee’s sole discretion based on good-faith belief, Richland is unable or will be unable to commence or cause to be commenced actual drilling operations on the Test Well before the Commencement DateWell.

Test Well. Farmees (a) Subject to the results of the 3D Seismic Date Program and Momentus’ interpretation of such processed data, Momentus shall commence or caused have the option to be commenced, on or before forty-five (45) days from the Effective Date, orelect, in the event its sole discretion, to drill a suitable rig is under contract but cannot commence drilling until after the expiration of such 45 day period, as soon as commercially practicable thereafter (but in no event longer than 90 days) (the “Commencement Date”), actual drilling operations on a well (the “Test Well”) in search of oil and/or gas at any legal location on the Subject Interests/at the location specified on Exhibit A hereto. Thereafter, Farmees Momentus shall continue to drill the Test Well with due diligence and in a good and workmanlike manner pursuant to a depth sufficient to penetrate and test in a horizontal wellbore the Woodbine formation (the “Objective Depth”); provided that Farmees shall not be precluded from drilling deeper than the Objective Depth. When Farmees have completed drilling operations on the Test Well, Farmees agree that (i) if the Test Well can be completed as a well capable of producing in paying quantities, to be determined at Farmees’ sole discretion, Farmees shall diligently prosecute the completion of the Test Well without unreasonable delays, or (ii) if the Test Well cannot be completed as a well capable of producing in paying quantities, Farmees shall plug and abandon the Test Well in accordance with the terms of the Subject Leases Amended JOA (as hereinafter defined). Momentus shall notify Farmors on or before the Option Date in writing of its election to drill a Test Well. The notification shall include the location that the Test Well will be drilled, which shall be on the Seismic Data Lands and all applicable laws will provide that the well bore and regulationsbottom hole location shall be located entirely within the Seismic Data Lands. If Farmees do not commence, or cause to be commenced, Momentus shall thereafter prosecute the actual drilling of the Test Well on or prior diligently, without unnecessary delay and in a workmanlike manner horizontally to a minimum lateral length of four thousand and nine hundred feet (4,900') within the Commencement Date▇▇▇▇▇▇ Formation as defined as the stratigraphic equivalent found at a measured depth of 9,418 to 9,440 feet TVD in the Australia II 12 KA 6 well located in the NW4NW4 of Section 29, Farmees’ right to earn T28N-R55E, in Roosevelt County, Montana (the Assignment hereunder shall terminate and, except as otherwise expressly provided herein, neither Party shall have any further rights or obligations hereunder"Contract Depth''). As set forth in Section IV, hereinbelow, Richland The Test Well shall be designated as “Operator” for operations conducted on designed in a manner to allow evaluation of the Subject Leases▇▇▇▇▇▇ Formation. Notwithstanding such designation, any Farmee Momentus shall be entitled to commence, or cause to be commenced, actual drilling operations on the Test Well if, in Farmee’s sole discretion based on good-faith belief, Richland is unable or will be unable use its commercially reasonable efforts to commence or cause to be commenced the actual drilling operations on of a Test Well within ninety (90) days following the Option Date (the “Spud Date”), subject to the availability of a drilling rig capable of drilling to the Contract Depth, surface conditions of the access road and well pad location, and the receipt of the following necessary regulatory approvals: (i) An Application for Drilling Permit approved by the BLM, the BIA, and the MBOGC; (ii) A surface use agreement with the surface owners for the access road and well pad location; and (iii) Any necessary Montana or Tribal road access permits for the movement or hauling of equipment exceeding the normal load rating for the access roads to the well pad location. If Momentus cannot commence drilling of the Test Well within ninety (90) days following the Option Date as a result of a delay caused by any of the foregoing or as a result of an event of Force Majeure, the Spud Date shall be extended for a reasonable period thereafter for so long as it takes Momentus to resolve such matters causing the delay. (b) Momentus shall notify Farmors of the spudding of the Test Well. After drilling has commenced and until the Test Well has been completed or plugged and abandoned as a dry hole, Momentus shall furnish to Farmors daily reports as to the progress of drilling the Test Well. (c) Momentus shall bear 100% of Farmors' proportionate share of any costs, expenses or risks of drilling, testing, completing, and equipping through the production tanks, or, if determined pursuant to Section 2(e) that the well is not capable of producing oil and gas in commercial quantities, the plugging and abandoning the Test Well. (d) Momentus agrees to promptly test any formation that either before or after logging appears favorable for the Commencement Dateproduction of oil and or gas in the opinion of a reasonably prudent operator. (e) If the Test Well proves to be capable of producing oil and or gas in commercial quantities, in the sole discretion of Momentus, it shall be equipped for production by Momentus through the crude oil tanks and natural gas metering facilities provided by Momentus. If the Test Well proves to be incapable of producing oil or gas in commercial quantities, in the sole discretion of Momentus, then Momentus shall plug the same in accordance with the laws of Montana, and shall reclaim the site in accordance with the Amended JOA.