Common use of Extension of the Licence for the Purpose of Further Exploration Clause in Contracts

Extension of the Licence for the Purpose of Further Exploration. (a) Subject to Section 23, Subsection 1, first para, of the Subsoil Act and Section 6.3.3 below and except to the extent not already included in an application under Section 6.3.1 the Operator and any other Party may propose by notice to the Operating Committee to submit an application for extension of the Licence for the purpose of further exploration and the terms and conditions suggested to apply. As soon as possible after the approval by the Operating Committee of the application, the Operator shall submit it to the Danish Energy Agency. (b) If the necessary majority required by Section 5.7.2 for the submission of an application for extension for the purpose of further exploration is not achieved, and the failure to submit an application at the time in question will result in the expiry of the Licence, the Parties wishing to do so may submit an application for an extension of the Licence for the purpose of further exploration to be effective as of the expiry of the Licence. If Nordsøfonden wishes to participate it shall at the same time notify the other Parties wishing to submit an application which Percentage Interest it will participate with in accordance with Section 6.3.4. In the event that such Parties are unable to agree on the terms and conditions suggested to apply to the extension, the proposal attracting the votes of the Party or Parties having the largest Percentage Interest(s) shall form the basis for the application. The Parties not participating in such an application shall cease to be Parties to said extension of the Licence and shall take no action which would unreasonably prejudice such an application. In the event that the Danish Energy Agency rejects an application thus submitted, but, however, allows for the re- submission thereof subject to amendment of terms and conditions as may be advised by it, then also the Parties which did not participate in the application first submitted shall be offered and be entitled to participate in any amended application to be submitted.