Well Count definition
Well Count means the well count set forth in the most recent Reserve Report calculated as follows: each well in which a member of the Owner Group holds an interest exclusive of the members of the Service Provider Group and each well in which a member of the Service Provider Group holds an interest exclusive of the members of the Owner Group shall be counted on a gross basis. Each well in which a member of the Owner Group and one or more members of the Service Provider Group own an interest shall be counted as a fractional well based on the relative ownership of the members of the Owner Group and the members of the Service Provider Group. For example, if the Owner Group owns a 25% interest, the Service Provider Group owns a 50% interest and a Third Party owns a 25% interest in a well, then the amount calculated pursuant to the foregoing sentence for the Owner Group shall equal 0.33 and the amount calculated pursuant to the foregoing sentence for the Service Provider Group shall equal 0.67. The “Services” to be provided by Service Provider in accordance with the terms and conditions of the Agreement shall include: