Common use of Test Well Clause in Contracts

Test Well. 3.1 Farmee shall, at its sole cost, risk and expense, and subject to having obtained a rig, all necessary surface access and Regulatory approvals, Spud the Test Well at a location of its choice on the Farmout Lands on or before 150 days following the execution hereof and drill the Test Well to Contract Depth. 3.2 Subject to Article 3.00 of the Farmout & Royalty Procedure and Article 20 of this Agreement, Farmee will earn 50% of Farmor’s Pre-Farmout Working Interest in the section of land on which the Test Well is situated together with 50% of the Farmor’s Pre-Farmout Working Interest in 5 additional sections of the Farmout Lands which are selected by Farmee not later than 90 days following the completion or abandonment, as applicable, of the Test Well.