Common use of Discovery and Appraisal Clause in Contracts

Discovery and Appraisal. 11.1 If an Exploration Well results in a Discovery, the Operator shall be required to notify OMNIS and the Participants no later than forty-eight (48) hours following such Discovery. Within thirty (30) days of notification of said Discovery, the Operator shall present to the management committee a report including all the technical data and the Operator’s point of view of the commercial potential of this Discovery. 11.2 If, according to the above Article 11.1, the Operator considers that the Discovery has commercial potential, he has ninety (90) days after the notification of the Discovery to present to the management committee a proposal for an appraisal program. The appraisal program shall be considered approved if the management committee has not sent to the Operator an objection within thirty (30) days following the receipt of the said appraisal program. The appraisal program shall cover, but shall not be limited to, the following points: a. Detailed program of works and budgets; b. The schedule and time limit for completion of the works to be performed; 11.3 If, after a Discovery, drilling rig is available, the Operator may proceed with the drilling of any additional Well considered deemed necessary by the Operator, before or while the management committee reviews the technical data in accordance with Article 11.1 or the examine the appraisal program. 11.4 The Operator may submit to the management committee proposal for the revisions of the approved appraisal program. Article