Prospect Costs definition

Prospect Costs means the actual costs incurred and paid by EnerVest, its assignees, designees, affiliates, or subsidiaries, to NGS and/or the operator of the Leases and ▇▇▇▇▇ located within the Prospect Basket or individual Fourth or Fifth Prospect, respectively, for (i) the drilling, completion, production facilities and/or gathering lines of the ▇▇▇▇▇, (ii) the maintenance and operation of the Leases within the Prospect Basket or individual Fourth or Fifth Prospect, respectively, and (iii) all other costs as provided in the Operating Agreement for each such Prospect. For the purposes of accounting and calculation of operating costs in calculation of payouts, the Parties have agreed to use generally accepted accounting methods and to utilize the ▇▇▇▇▇ procedures (including, without limitation, the overhead rates set forth therein) which are set forth as Exhibit C to each of the Operating Agreements. NGS shall furnish to EnerVest on a calendar quarterly basis, beginning with the calendar quarter following the date of first production from any of the Leases with a current statement of the status of Prospect Payout (the “Prospect Payout Statement”) Each Prospect Payout Statement shall contain, in addition to a reasonably detailed statement of all Prospect Costs, full and complete details of all hydrocarbons produced and sold and the Prospect Net Proceeds. EnerVest shall have the right to audit NGS’s accounts and records relating to or in any manner pertaining to Prospect Payout, during normal office hours after reasonable notice and in such a manner which will result in as little inconvenience to NGS as possible. Unless a disagreement arises between the Parties, any such audits shall not be conducted more than once each year without prior approval of NGS. All such audits shall be at EnerVest’s sole cost and expense. The Back-In Interest shall become effective and automatically vest in NGS at 7:00 a.m. local time on the first day of the month following the date on which Prospect Payout occurs. No later than ten (10) days after Prospect Payout occurs, EnerVest and NGS file a notice and memorandum of record indicating the effective time of Prospect Payout. From and after the Prospect Payout, NGS shall own the Back-In Interest and (i) bear and pay its proportionate share of all costs, risks, and liabilities of owning, drilling, testing, completing, equipping and operating the lands, leases and ▇▇▇▇▇ subject to and attributable to the Back-In Interest and all lands and leases p...
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Prospect Costs means all out-of-pocket costs incurred by the Operator that are associated with the generation of a Prospect, including, without limitation, (i) lease acquisition cost, (ii) bonus, delay rental and shut-in royalty
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Examples of Prospect Costs in a sentence

  • The entire Prospect Costs are fully refundable in the event this Agreement is rescinded by Company for any reason or Company fails to cause the Initial Test Well to be drilled for any reason.

  • The Carried Interest shall be free of the Allocated Funding Percentage of the Total Prospect Costs of each Project Well and the cost of plugging and abandoning each such well, it being agreed that Nacogdoches Gas shall bear and pay its Allocated Funding Percentage share of the Total Prospect Costs incurred in connection with each Project Well.

  • The resulting total net percentage of the Total Prospect Costs of each respective Phase I Well to be funded by Nacogdoches Gas shall be defined as the "Allocated Funding Percentage".

  • Prior to Project Payout, Sonerra shall be carried by Nacogdoches Gas for a working interest percentage equal to ten percent (10.0%) of the Allocated Funding Percentage of the Total Prospect Costs (the "Carried Interest") in each Project Well (being the Carried Interest percentage and as more particularly described in the Participation Agreement relating to each such particular Project Well).

  • NGS shall furnish to EnerVest on a calendar quarterly basis, beginning with the calendar quarter following the date of first production from any of the Leases with a current statement of the status of Prospect Payout (the “Prospect Payout Statement”) Each Prospect Payout Statement shall contain, in addition to a reasonably detailed statement of all Prospect Costs, full and complete details of all hydrocarbons produced and sold and the Prospect Net Proceeds.

  • For the purposes of this agreement, the term "Total Prospect Costs" shall be defined as (i) the reasonable Acreage Consideration and G&G costs (each as defined or set forth in the Participation Agreement (hereinafter described) pertaining to each specific Project Well), and (ii) the actual costs of all drilling, testing, completing and equipping (including the costs of installing any gas gathering facilities and the wellhead production meter) of or for a Project Well.

  • Nacogdoches Gas shall provide financing for the Allocated Funding Percentage (as hereinafter defined) of the Total Prospect Costs (as hereinafter defined) for each Project Well.

  • Nacogdoches Gas has the right to audit the Balance Account and the Total Prospect Costs and operating costs of any Project Well or other costs financed under and pursuant to the terms of this Agreement, including those wells and other assets included within th▇ ▇▇▇Stone Interests.

  • Participant will pay its share of such current and future Prospect Costs.

  • It is agreed and understood among the parties that neither this provision nor the preceding provision dealing with the refund of dry hole costs shall apply to any reimbursement for expenses incurred, including Prospect Costs, or for payment of fees incurred in accordance with the applicable Operating Agreement or Exploration Agreement.