Common use of Test Well Clause in Contracts

Test Well. On or before April 30, 2008, El Paso, as "Operator", will commence, or cause to be commenced, drilling operations on the Test Well, the estimated cost of which is described in the Authorization for Expenditure ("AFE") attached as Exhibit "A" and thereafter continuously prosecute the drilling of the Test Well in a good and workmanlike manner to Casing Point. "Casing Point" shall mean that point in time when the well has reached its Objective Depth, or such other depth as may be mutually agreed by the Parties, and all logs, cores and other tests have been completed that in the opinion of the Operator are sufficient to make a determination concerning the running of production casing or the plugging and abandonment of the well, and the results thereof have been furnished to the Participants together with Operator's recommendation. The Test Well will be drilled as a vertical well from a surface location that is approximately 2,195 feet from the North line and 4,690 feet from the West line of South Marsh Island Area Block 213 to (i) 16,500 feet TVD (16,500 feet MD) ▇▇ (▇i) a depth sufficient to test the Rob L section, as seen on the Array Induction-GR log of the McMoRan ▇▇▇▇▇ Marsh Island 217 #223 Well between the depths of 13,900' and 16,100' ▇▇, whichever is the lesser depth (the "Objective Depth"). Participation Agreement (State Lease 19499)