Farm-Out definition

Farm-Out means an agreement pursuant to which the owner of a working interest in an oil and natural gas lease assigns the working interest or a portion thereof to another party who desires to drill on the leased acreage. Generally, the assignee is required to drill one or more wells in order to earn its interest in the acreage. The assignor usually retains a royalty or reversionary interest in the lease. The interest received by an assignee is a "farm-in" and the assignor issues a "farm-out."

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Farm-Out means an agreement between the holder of an oil mining lease and a third party which permits the third party to explore, prospect, win, work and carry away any petro- leum encountered in a specified area during the validity of the lease;

Farm-Out means an agreement between the holder of a petroleum mining lease or petroleum prospecting licence and a third party, which permits the third party to explore, prospect, win, work and carry away any petroleum encountered in a licence or lease area during the validity of the licence or lease.

Examples of Farm-Out in a sentence

• The Administrative Agent shall have received a true, correct and complete copy of each Pacific Farm-Out Document specified in Section 3.1, in each case, duly executed and delivered by a duly authorized officer of each party thereto, and each such Pacific Farm-Out Document shall be in full force and effect.

• The Purchaser shall be entitled to retain all benefit received by the Purchaser prior to the Cancellation Closing relating to the Affected Royalty notwithstanding the re-assignment of the Affected Royalty to the Vendor and notwithstanding any termination of a Royalty Assignment Agreement (Sale), Royalty Assignment Agreement (Farm-Out) or Royalty Assignment Agreement (Farm-In).

• The Joint Operating Agreement, the Operating Services Agreement and the Carry Agreement will not become effective at any time prior to the Pacific Farm-Out Completion Date.

• Seller and Purchaser agree that such cooperation shall not indicate agreement to or require consistency with the other’s tax treatment of the contemplated transaction.

• No “default,” “event of default” or similar event has occurred and is continuing under any of the Pacific Farm-Out Documents.

More Definitions of Farm-Out

Farm-Out means an agreement whereby the Company would agree to assign its Interest in a specific leasehold or Working Interest owned by it to other parties while retaining some part of its original interest (such as an Overriding Royalty Interest, oil and/or gas payment, offset acreage, or other type of interest) subject to the Drilling, Testing and/or Completion of one or more specified wells or other performance by the other parties as a condition of the assignment.

Farm-Out means an agreement or other arrangement in which the owner of a working interest in an oil and gas lease or similar instrument delivers the contractual right to earn an interest in such oil and gas lease or similar instrument to another party in exchange for such other party (i) satisfying certain obligations, (ii) performing or causing the performance of certain actions and/or (iii) satisfying certain conditions.

Farm-Out means an agreement between the holder of an oil mining lease and a third party which permits the third party to explore, prospect, win, work and carry away any petroleum encountered in a specified area during the validity of the lease; “Significant Activity” means drilling, recompletion, workover or any other development activity aimed at bringing the field into production.

Farm-Out means, with respect to any licence, association or any other type of joint venture or operating agreement whatsoever, the effect of selling, assigning or sub-contracting certain working interests or drilling, completing, operational and/or production duties, responsibilities or obligations pursuant to such agreements; and the term "Farming-Out" shall have the corresponding meaning;

Farm-Out means an agreement whereby the owner of the leasehold or working interest agrees to assign his interest in certain specific acreage to the assignees, retaining some interest such as an overriding royalty interest, an oil and gas

Farm-Out. When it becomes necessary for a group leader to temporarily assign (“Farm Out”) employees to another department, it will be done on a fair and equitable basis.

Farm-Out means any person or entity which provides chauffeured vehicle services to MILN other than Franchisees and Affiliates.