Test Xxxxx. ELM RIDGE and PROVIDENCE agree to drill and test, or cause to be drilled and tested, and if warranted, complete and equip two (2) xxxxx at mutually agreeable locations on the Leases to test the Xxxxxxxxxxx Formation, unless granite or other practically impenetrable substance or condition in the hole, which renders further drilling impracticable, is encountered at a lesser depth, or unless all parties agree to complete or abandon the well at a lesser depth. These test xxxxx will be drilled in accordance with those terms governing drilling of the initial well(s) found in Article VI of the Joint Operating Agreement (“JOA”) described in Article Nine (9) below, with the first of such xxxxx to be commenced on or before October 1, 2008. ELM RIDGE and PROVIDENCE each agree to pay 50% of the total costs to drill and complete (or plug and abandon) each such test well; provided however, as additional consideration for the purchase of the Subject Properties, ELM RIDGE agrees to carry PROVIDENCE for $1,000,000.00 of its proportionate share of total well costs in each of the two (2) test xxxxx referenced herein (a total of $2,000,000.00 for both xxxxx). Providence agrees to pay the balance of its share of the total costs of each test well remaining unpaid after being credited with the $1,000,000.00 ELM RIDGE carry obligation in each test well.
Test Xxxxx a) Farmee shall spud 2 test xxxxx (collectively the “Test Xxxxx”; individually the “Test Well”), at locations to be selected by the Farmor on the Farmout Lands, as soon as reasonably practicable but no later than October 1, 2007. Farmee shall then diligently and continuously drill each of the Test Xxxxx to Contract Depth at its sole cost, as specified below. In the event surface access to the drill site cannot be reasonably obtained by the required date because of surface conditions, weather conditions, rig availability or regulatory approval, there shall be an extension to the commencement date which shall be reasonable under the circumstances. For each of the Test Xxxxx, if production of petroleum substances in paying quantities is indicated, the Farmee shall equip this Test Well and thereafter use its best efforts to produce and dispose of the said substances.
Test Xxxxx. Use standard thermowells. Each well to have ½ inch 316 SS plug and chain connected to well.
Test Xxxxx. Drilling and completion operations on the first well (or substitute therefore) commenced on each separate Prospect Area which two or more of the Parties have elected to acquire in accordance with this Agreement, will be conducted in accordance with the JOA executed in connection therewith, including without limitation, the non-consent penalty provisions. Such provisions provide, in part, that Parties electing, or deemed to elect, not to participate in the drilling of an initial test well (or substitute therefore), will release, relinquish and forfeit all right, title and interest in and to such Prospect Area; provided, however, in the case of ZaZa as the non-participant, the Reserved Overriding Royalty Interest and the After Payout Working Interest will remain applicable to such Prospect Area. 4.4.
Test Xxxxx. On or before September 30, 2016, subject to surface access, rig availability, regulatory approval and completion of a spacing unit through pooling or otherwise, Farmee shall, at its sole cost, risk and expense. spud one (l) Test Well at a location of its choice on the Farmout Lands and thereafter diligently and continuously drill such Test Well and complete, cap or abandon such well pursuant to the Farmout & Royalty Procedure as the case may be. Farmee shall provide a Drilling Notice to Farmor at least seven (7) days prior to the spudding of such Test Well.
Test Xxxxx. 2. Synergy's original interest in the Pre-Owned Leases cover 8,086 gross acres and 8,011 Net Mineral Acres.
Test Xxxxx. The College shall monitor the test xxxxx for safety reasons and shall make sure that at all times, the xxxxx’ lids are secured and safe and said lids shall be marked as “TEST WELL”.
Test Xxxxx. The first Obligatory Well drilled on a Drilling Unit shall be drilled at a mutually agreeable location and to a depth (“Contract Depth”) mutually agreed to by the Parties in a bona fide attempt to establish production of oil or gas in paying quantities or if said Obligatory Well is a dry hole, to plug and abandon it in accordance with applicable governmental rules and regulations and restore the surface location. If Xxxxxxx is required to determine whether or not the Contract Depth has been sufficiently tested, Xxxxxxx shall consider all comments and information timely provided by Providence and any decision shall be made jointly by Xxxxxxx and Providence based on industry practices as utilized by a reasonably prudent operator and the applicable provisions in the Operating Agreement.
Test Xxxxx. A. Participant agrees to participate in the drilling of the initial Test Well. “
Test Xxxxx. On or before April 30, 2003, Farmee shall spud the following three Test Xxxxx: 00-00-00-00 W4M 103/00-00-00-00 W4M 1-1-20-20 W4M Farmee shall participate (as to a 70% working interest) in the drilling, casing and completion of each of the three Test Xxxxx.
