Common use of Test Well Clause in Contracts

Test Well. For the purposes of this Agreement, the Test Well shall be defined as the initial well drilled on the North Franklin Prospect under the terms of this Agreement. Operator shall notify each Participant of the projected spud date of the Test Well not more than thirty (30) days prior to that date. Each Participant shall, not later than ten (10) days following receipt of said notice, advance its Participation Share of one hundred percent (100%) of said Test Well’s estimated AFE drilling costs to Operator. Operator shall promptly commence and diligently continue with the actual drilling of the proposed Test Well after the receipt of all the Test Well’s drilling costs. In the event any Participant fails to so advance the drilling funds for the Test Well, ▇▇▇▇▇▇ may, at its option, terminate this Agreement in its entirety as to that Participant by delivering to such Participant a written notice of termination. In the event this Agreement is so terminated, said Participant shall forfeit all funds previously paid to ▇▇▇▇▇▇ and have no rights or obligations under this Agreement, except any obligations accruing prior to such termination.