Common use of Exploratory Operations Clause in Contracts

Exploratory Operations. An operation that is conducted on the Lease and that is any of the following: (a) proposed to Complete an Exploratory Well; (b) proposed for an Objective Horizon that is not a Producible Reservoir; (c) proposed for an Objective Horizon that has a Producible Well, but that will be penetrated at a location where the distance between the midpoint of the Objective Horizon to be penetrated by the proposed operation and the midpoint of the same Objective Horizon where it is actually penetrated by a Producible Well will be at least three thousand (3,000) feet for a gas Completion and at least two thousand (2,000) feet for an oil Completion; or (d) proposed for an Objective Horizon that is unanimously agreed by the Parties not to be in an existing Producible Reservoir.