Common use of Areas of Mutual Interest Clause in Contracts

Areas of Mutual Interest. 7.1 EOS and BUCCANEER hereby designate an area of mutual interest (the "AMI") pursuant to which EOS and BUCCANEER shall each have a right to participate in the exploration for, development, and production of hydrocarbons pursuant to additional non-producing oil and gas leases, which leases may be acquired by either Party. The AMI includes the area within the red border line depicted on the map attached hereto as EXHIBIT D. 7.2 If, during the duration of the AMI as hereafter set forth, either EOS or BUCCANEER should acquire ("Acquiring Party") any oil and gas lease, leasehold interest or mineral interest by any means including, but not limited to, purchase, top lease, farmins, farmouts, farmout options, or acreage contributions, within the AMI, then the Acquiring Party shall deliver, within five (5) business days of such acquisition, a notice to the non-Acquiring Party, in writing, of such acquisition setting forth the nature of the interest acquired, all terms, provisions and contracts related to the acquisition (along with copies of all documents relating to the acquisition or rights to earn a leasehold or mineral interest) and the price paid therefor. 7.3 The non-Acquiring Party shall have a period of twenty (20) days following the receipt of such notice to elect in writing to purchase at the Acquiring Party's cost a proportionate share (as defined below) of such acquisition by: (a) delivering a notice, in writing, during such twenty (20) day period, to the Acquiring Party notifying the Acquiring Party that such non-Acquiring Party elects to acquire its proportionate share of such acquisition; and (b) within twenty (20) days after the expiration of the twenty (20) day period applicable to the election notice described in clause (a) above, remitting the required payment to the Acquiring Party. 7.4 As used in this section, the term "proportionate share" means, in each case as adjusted pursuant to the last sentence of Section 7.5 below, fifty per cent (50%) in the case of EOS, and fifty per cent (50%) in the case of BUCCANEER. 7.5 The Acquiring Party shall assign, by form of assignment containing reasonable and customary terms and conditions, to be mutually agreed by the Parties, to the Party electing to participate in the acquisition, its proportionate share of such acquired interest, subject to a like proportionate share of the costs and obligations relating thereto; in each case such proportionate share shall be equal to the proportionate share of such Party at the time of such election (as distinguished from the proportionate share of such Party as of the Effective Date). 7.6 If the interest is to be earned by drilling or shooting seismic, the non-Acquiring Party must ratify all appropriate agreements within the twenty (20) day period described in Section 7.3(b) hereunder. If the non-Acquiring Party turns down any interest or fails to pay for its proportionate share of such interest with respect to any given lease or prospect hereunder, the Acquiring Party shall hold such interest free and clear of any further AMI obligations of this Agreement, and the non-Acquiring Party will have no further AMI obligations of this Agreement with respect to such lease or prospect. 7.7 The AMI and the agreements of the Parties with respect thereto for the Leases shall remain in effect until the Leases have been abandoned in accordance with the terms of the C▇▇▇ Inlet Operating Agreement or the Parties have otherwise agreed to terminate the AMI. 7.8 Notwithstanding the foregoing, EOS shall have an exclusive right and option to pay 100% of the costs associated with at least one other offshore prospect identified or acquired by BUCCANEER, in addition to the Commitment W▇▇▇▇ and North C▇▇▇ Inlet Option W▇▇▇▇ as set forth herein, in order to earn into 50% of BUCCANEER’S Working Interest in such w▇▇▇▇ and leases, on similar terms and conditions as set forth herein for the Commitments W▇▇▇▇. The exclusive right and option set forth herein applies only to new non-producing acquisitions or mutually agreed acquisitions within the AMI. In connection with any other agreed exploration and production activities undertaken by the Parties, BUCCANEER will provide all G&G evaluations within the AMI or with respect to any and all Commitment W▇▇▇▇, prospects subject to an EOS option or earn in, or w▇▇▇▇ for which costs are paid by EOS hereunder, at staff and office cost +15% to EOS, and EOS shall have the exclusive right of first refusal on all such leases or prospects evaluated hereunder within the AMI. BUCCANEER will also discuss with EOS opportunities for additional exploration and development activities and propose partnering relationships where applicable.

Areas of Mutual Interest. 7.1 EOS and BUCCANEER hereby designate an area of mutual interest (the "AMI") pursuant to which EOS and BUCCANEER shall each have a right to participate in the exploration for, development, and production of hydrocarbons pursuant to additional non-producing oil and gas leases, which leases may be acquired by either Party. The AMI includes the area within the red border line depicted on the map attached hereto as EXHIBIT D. 7.2 If, during the duration of the AMI as hereafter set forth, either EOS or BUCCANEER should acquire ("Acquiring Party") any oil and gas lease, leasehold interest or mineral interest by any means including, but not limited to, purchase, top lease, farmins, farmouts, farmout options, or acreage contributions, within the AMI, then the Acquiring Party shall deliver, within five (5) business days of such acquisition, a notice to the non-Acquiring Party, in writing, of such acquisition setting forth the nature of the interest acquired, all terms, provisions and contracts related to the acquisition (along with copies of all documents relating to the acquisition or rights to earn a leasehold or mineral interest) and the price paid therefor. 7.3 The non-Acquiring Party shall have a period of twenty (20) days following the receipt of such notice to elect in writing to purchase at the Acquiring Party's cost a proportionate share (as defined below) of such acquisition by: (a) delivering a notice, in writing, during such twenty (20) day period, to the Acquiring Party notifying the Acquiring Party that such non-Acquiring Party elects to acquire its proportionate share of such acquisition; and (b) within twenty (20) days after the expiration of the twenty (20) day period applicable to the election notice described in clause (a) above, remitting the required payment to the Acquiring Party. 7.4 As used in this section, the term "proportionate share" means, in each case as adjusted pursuant to the last sentence of Section 7.5 below, fifty per cent (50%) in the case of EOS, and fifty per cent (50%) in the case of BUCCANEER. 7.5 The Acquiring Party shall assign, by form of assignment containing reasonable and customary terms and conditions, to be mutually agreed by the Parties, to the Party electing to participate in the acquisition, its proportionate share of such acquired interest, subject to a like proportionate share of the costs and obligations relating thereto; in each case such proportionate share shall be equal to the proportionate share of such Party at the time of such election (as distinguished from the proportionate share of such Party as of the Effective Date). 7.6 If the interest is to be earned by drilling or shooting seismic, the non-Acquiring Party must ratify all appropriate agreements within the twenty (20) day period described in Section 7.3(b) hereunder. If the non-Acquiring Party turns down any interest or fails to pay for its proportionate share of such interest with respect to any given lease or prospect hereunder, the Acquiring Party shall hold such interest free and clear of any further AMI obligations of this Agreement, and the non-Acquiring Party will have no further AMI obligations of this Agreement with respect to such lease or prospect. 7.7 The AMI and the agreements of the Parties with respect thereto for the Leases shall remain in effect until the Leases have been abandoned in accordance with the terms of the C▇▇▇ Inlet Operating Agreement or the Parties have otherwise agreed to terminate the AMI. 7.8 Notwithstanding the foregoing, EOS shall have an exclusive right and option to pay 100% of the costs associated with at least one other offshore prospect identified or acquired by BUCCANEER, in addition to the Commitment W▇▇▇▇ and North C▇▇▇ Inlet Option W▇▇▇▇ as set forth herein, in order to earn into 50% of BUCCANEER’S Working Interest in such w▇▇▇▇ ▇, leases and leasesunits, on similar terms and conditions as set forth herein for the Commitments W▇▇▇▇. The exclusive right and option set forth herein applies only to new non-producing acquisitions or mutually agreed acquisitions within the AMI. In connection with any other agreed exploration and production activities undertaken by the Parties, BUCCANEER will provide all G&G evaluations within the AMI or with respect to any and all Commitment W▇▇▇▇, prospects subject to an EOS option or earn in, or w▇▇▇▇ for which costs are paid by EOS hereunder, at staff and office cost +15% to EOS, and EOS shall have the exclusive right of first refusal on all such leases or prospects evaluated hereunder within the AMI. BUCCANEER will also discuss with EOS opportunities for additional exploration and development activities and propose partnering relationships where applicable.

Areas of Mutual Interest. 7.1 EOS Foreland and BUCCANEER Farakel hereby designate an area agree to create Areas of mutual interest Mutual Interest (the "AMIAMIs") pursuant to which EOS and BUCCANEER shall each have a right to participate in for the exploration for, development, and production of hydrocarbons pursuant to additional non-producing oil and gas leases, which leases may be acquired by either PartyProspects as shown on Exhibits B1 through B4. The AMI includes the area within the red border line depicted on the map attached hereto as EXHIBIT D. 7.2 AMIs shall remain in full force and effect until June 30, 2003. If, during the duration term of the AMI as hereafter set forthAMIs, either EOS Foreland or BUCCANEER should Farakel acquires or has the opportunity to acquire ("Acquiring Party") any oil and gas lease, leasehold interest or mineral interest by any means including, but not limited to, purchase, top lease, farmins, farmouts, farmout options, or acreage contributions, within the AMI, then the Acquiring Party shall deliver, within five (5) business days of such acquisition, a notice to the non-Acquiring Party, in writing, of such acquisition setting forth the nature of the interest acquired, all terms, provisions and contracts related to the acquisition (along with copies of all documents relating to the acquisition or rights to earn a leasehold or mineral interest) and the price paid therefor. 7.3 The non-Acquiring Party shall have a period of twenty (20) days following the receipt of such notice to elect in writing to purchase at the Acquiring Party's cost a proportionate share an Acquired Interest (as defined below) it will notify the other Party of such acquisition by: (a) delivering or opportunity, including in such notice a notice, description of the interest and the terms and conditions upon which it has been or can be acquired at actual cost and net revenue as delivered to acquiring party. The notified Party will have a period of 15 days after receipt of the notice of acquisition in writing, during which it may elect by responsive notice received by the acquiring Party within such twenty (20) day period, to the Acquiring Party notifying the Acquiring Party that such non-Acquiring Party elects period to acquire its proportionate share of such the interest described in the notice of acquisition; and (b) . A failure to elect affirmatively to participate within twenty (20) days after the expiration period herein provided will constitute conclusive election of the twenty (20) day period applicable to the election notice described in clause (a) above, remitting the required payment to the Acquiring Party. 7.4 As used in this section, the term "proportionate share" means, in each case as adjusted pursuant to the last sentence of Section 7.5 below, fifty per cent (50%) in the case of EOS, and fifty per cent (50%) in the case of BUCCANEER. 7.5 The Acquiring Party shall assign, by form of assignment containing reasonable and customary terms and conditions, to be mutually agreed by the Parties, to the Party electing notified party not to participate in the interest described in the notice of acquisition, its proportionate share and such party will have no further rights hereunder in respect of such acquired interest, subject Acquired Interest. An election to a like participate will constitute the binding obligation of the electing Party to pay or otherwise discharge its proportionate share of the costs and/or obligations of acquisition described in the acquisition notice and obligations relating thereto; in each case such proportionate share party shall be equal entitled to receive upon discharge of such obligation their percentage part of the Acquired Interest. An Acquired Interest is any acquisition from a third party of an interest in an oil and gas lease (federal, state or fee), or extension or renewal thereof, fee mineral interest or option to lease, any royalty or overriding royalty interest, farmin acquisitions, acreage contributions received in consideration for the drilling of a well within the AMI, or an interest obtained under any third party contract or agreement relating to the proportionate share of such Party at AMI after the time of such election (as distinguished from the proportionate share of such Party as of the Effective Date). 7.6 If the interest is to be earned by drilling or shooting seismic, the non-Acquiring Party must ratify all appropriate agreements within the twenty (20) day period described in Section 7.3(b) hereunder. If the non-Acquiring Party turns down any interest or fails to pay for its proportionate share of such interest with respect to any given lease or prospect hereunder, the Acquiring Party shall hold such interest free and clear of any further AMI obligations date of this Agreement, and . Under no circumstances shall the non-Acquiring Party will have no further AMI obligations provisions of this paragraph be deemed to apply to the sale or transfer of any interest among the parties to this Agreement with respect nor sale of any interest to such lease or prospect. 7.7 The AMI and the agreements a third party, nor is any Preferential Right of the Parties with respect thereto for the Leases shall remain in effect until the Leases have been abandoned in accordance with Purchase to be implied hereby. Deerfield hereby agrees to be bound by the terms of this paragraph 8, but only as to the C▇▇▇ Inlet Operating Agreement or area within the Parties have otherwise agreed to terminate the AMI. 7.8 Notwithstanding the foregoing, EOS shall have an exclusive right and option to pay 100% boundaries of the costs associated with at least one other offshore prospect identified or acquired by BUCCANEERproposed Hay Ranch Federal Unit, in addition to the Commitment W▇▇▇▇ and North C▇▇▇ Inlet Option W▇▇▇▇ as set forth herein, in order to earn into 50% of BUCCANEER’S Working Interest in such w▇▇▇▇ and leases, on similar terms and conditions as set forth herein for the Commitments W▇▇▇▇. The exclusive right and option set forth herein applies only to new non-producing acquisitions or mutually agreed acquisitions within the AMI. In connection with any other agreed exploration and production activities undertaken by the Parties, BUCCANEER will provide all G&G evaluations within the AMI or with respect to any and all Commitment W▇▇▇▇, prospects subject to an EOS option or earn in, or w▇▇▇▇ for which costs are paid by EOS hereunder, at staff and office cost +15% to EOS, and EOS shall have the exclusive right of first refusal on all such leases or prospects evaluated hereunder within the AMI. BUCCANEER will also discuss with EOS opportunities for additional exploration and development activities and propose partnering relationships where applicableabove described.