Initial Test Well Clause Samples
The Initial Test Well clause defines the requirements and procedures for drilling the first exploratory or development well on a leased property. Typically, this clause outlines the timeline by which the well must be commenced, the minimum depth or formation to be tested, and the standards for what constitutes a valid test. For example, it may specify that drilling must begin within a certain number of months after the lease is signed and that the well must reach a particular geological formation. The core function of this clause is to ensure that the lessee actively explores or develops the property, preventing the lease from being held without meaningful activity and protecting the lessor’s interests.
Initial Test Well. 4.1 The Initial Test Well will be drilled from a surface location on Apache’s South Timbalier 308 A Platform to a bottomhole location on the Lease, pursuant to the well plan attached hereto as Exhibit “A” and to a depth sufficient to test the lowest Catinaster coalitus Sand as seen in the ST 308 #A-3 with top of sand at 20,750’ MD/19,604’ TVD and base at 20,868’ MD/19,720’ TVD (“Objective Depth”).
4.2 Apache will plan to enter into a contract for the platform rig to be utilized for the drilling of the Initial Test Well on or before December 1, 2007. Should Apache fail to contract the platform rig by such date, then at Ridgewood’s sole election, its participation commitment may be terminated immediately with no continuing liability obligation or penalty to either Party. For avoidance of doubt, in the event Apache fails, for any reason to contract the platform rig by December 1, 2007, Ridgewood’s sole remedy against Apache will be to terminate this Agreement and Ridgewood hereby waives any and all claims and damages of every kind whatsoever resulting from Apache’s failure to enter into a drilling contract on or before December 1, 2007.
4.3 Subject to permitting, rig availability, and events of Force Majeure, Apache shall use all commercially reasonable efforts to commence operations on the Initial Test Well within ninety (90) days of the Effective Date hereof.
4.4 In the event operations for the Initial Test Well are not commenced by Apache or another third party within ninety (90) days of the Effective Date hereof other than for reasons attributable to permitting, rig unavailability, or Force Majeure or if Apache is not the operator, then Ridgewood may, within thirty (30) days following such ninety (90) day period, elect to terminate this Agreement immediately with no continuing liability obligation or penalty to either party and Ridgewood hereby waives any and all claims and damages of every kind whatsoever arising out of this Agreement.
4.5 Apache shall provide Ridgewood with copies of all well information from the Initial Test Well as required under the Operating Agreement.
4.6 In the event the Initial Test Well does not reach the Objective Depth because of mechanical difficulties or Gulf Coast Conditions (i.e. rock salt, heaving shale, excessive water flow, depleted sands, excessive pressure, base or other impenetrable matter) that prevent the operator from drilling the Initial Test Well to the Objective Depth, the Parties hereto, pursuant to the Operat...
Initial Test Well. NEWFIELD, as operator under the Operating Agreement (defined in Article III below), and subject to rig availability and obtaining all requisite permits, agrees to use reasonable efforts to commence, or cause to be commenced, on or before [Redacted], actual drilling of the [Redacted] (“ITW”) at an approximate surface coordinate location of[Redacted]. The ITW is to be drilled as an Exploratory Well (as such term is used in the Operating Agreement) to 22,000’ MD / TVD or a depth sufficient to test the stratigraphic equivalent of the ‘21,000’ and 22,000’ Sand’ (the “Objective Depth”), whichever is the lesser depth. An Authority for Expenditure (“AFE”) for the ITW is attached to this Agreement as Exhibit “A-1” (the “Approved AFE”) and by the execution hereof, each of NEWFIELD and RIDGEWOOD agrees to participate in the drilling of the ITW in accordance with the terms hereof. Contemporaneously with the execution of this Agreement, RIDGEWOOD agrees to execute and deliver to NEWFIELD a counterpart copy of the Approved AFE. The failure to timely commence the drilling of the ITW and the Parties agreement to terminate this Agreement, shall result in the termination of this Agreement, the return of the Cash Consideration by NEWFIELD to RIDGEWOOD and the reassignment from RIDGEWOOD to NEWFIELD of all of its record title interest in and to the Leases. Otherwise, there shall be no penalty for failure to timely commence the drilling of the ITW. [Redacted] Prospect Ridgewood Energy Corporation 2 Participation Agreement
Initial Test Well. Ridgewood agrees to assume their Participating Interest in the costs to drill and evaluate the ITW to “Casing Point”. The Authority for Expenditure (“AFE”) to drill the ITW is attached hereto as Exhibit “C”. Concurrent with the execution of this Agreement, the parties agree to approve and execute the formal AFE. As used in this Agreement, "
Initial Test Well. Lease Owners and Participants shall diligently prosecute the drilling of the Initial Test Well on the Contract Area to the lesser of: (a) a depth of 16,375’ MD/16,200’TVD, or (b) a depth sufficient to test the stratigraphic equivalent of the Big A-4 Sand, as seen between the depths of 15,600’ MD and 15,700’ MD on the induction focused log in the REDACTED (the “Objective Depth”). The Initial Test Well will be drilled from a surface location on REDACTED to the Objective Depth with an approximate target location at the Objective Depth having REDACTED Coordinates of X= REDACTED and Y= REDACTED.
Initial Test Well. On or before October 1, 2013 Operator shall commence the actual drilling of a Test well located on the Contract Acreage ("Initial Test Well"). Said well shall be drilled diligently, without unnecessary delay, and in a workmanlike manner to the base of the Tensleep Formation defined as the stratigraphic equivalent of 7,854’ as found in the ▇▇▇▇▇ Bros. 4 well located in the NE/4SW/4 Section 11-T20N-R79W (“Initial Contract Depth”), and shall be Completed if a well capable of production in paying quantities, or plugged and abandoned if a dry hole, in accordance with all applicable laws, rules and regulations and this contract. Operator shall notify Farmor in writing of the commencement of actual drilling operations for the Initial Test Well within ten (10) days prior to such commencement, furnishing a copy of the surveyor's Plat of Location. For purposes of this Contract, the term “Complete(s)”, “Completed” or “Completion” shall mean operations to complete a well as a producer of oil and/or gas, including, but not limited to, the setting of production casing, perforating, well stimulation and production testing.
Initial Test Well. Westside and Forest shall, on or before August 1, 2006 commence the drilling of a horizontal exploratory well (the "Initial Exploratory Well"), at a mutually agreeable location within the boundaries of the "Contract Area". Said Initial Exploratory Well shall be designed to reach a measured depth of 10,678' and True Vertical Depth of 8,500' with a minimum 2000' lateral section. The Parties agree to use commercially reasonable efforts to drill the Initial Exploratory Well to a depth adequate, in Forest's reasonable opinion, to test the B▇▇▇▇▇▇ Shale section identified between the stratigraphic equivalent depths of 8,630' and 8,876' as seen on the Induction Electric Log in Mobil Oil Corporation's A.▇. ▇▇▇▇▇▇▇ #1 Well, (J. ▇. ▇▇▇▇ Survey A-750, Hill County, Texas), or such other lateral depths as agreed upon between Westside and Forest (the "Objective Depth").
Initial Test Well. 1. Subject to permitting and rig availability, Zenergy, as operator, shall use commercially reasonable efforts to commence or cause to be commenced by December 20, 2007 the turnkey drilling of a well using the ▇▇▇▇▇▇ Richmond rig at a location on the Lease set out on the Authority for Expenditure (AFE) attached hereto as Exhibit “C”, the “Initial Test Well”. Zenergy shall be permitted to extend the commencement date in the event the drilling rig, through no action of Zenergy, will not be available to commence the proposed operation before such date and Zenergy is successful in getting additional time prior to Lease expiration by obtaining a Suspension of Operations (“SOO”) or a Suspension of Production (“SOP”), as circumstances dictate, from the MMS for the Lease.
2. The Parties agree to bear and pay their proportionate share as set forth below of all the cost, risk, expense and liability of any nature whatsoever incurred in the drilling, testing, logging, coring and evaluating the Initial Test Well (including plugging and abandonment costs, if a dry hole), subject to the AFE attached hereto. By execution of this agreement, each party approves the AFE. The Initial Test Well shall be drilled pursuant to the terms of the Operating Agreement and all cost, risk, expense and liability for the drilling of the Initial Test Well to Production Casing Point, as hereinafter defined, and, if necessary, the plugging and abandonment cost shall be shared by the Parties hereto in the following proportions: Zenergy 30.555 % Ridgewood 44.444 % CMI 16.666 % Helis 5.557 % Houston 2.778 % 100.000 % The Parties before Production Casing Point interest as shown above is limited to the actual costs of the Initial Test Well to Production Casing Point or to one hundred percent (100%) of the dry hole costs connected with the Initial Test Well as reflected on the AFE attached hereto as Exhibit “C”, whichever first occurs. Thereafter all subsequent costs shall be borne by the Parties based on their ACP Interest. Production Casing Point is defined herein as that point when the Initial Test Well has been drilled to Contract Depth and all logging, testing and evaluations have been conducted, and such information has been provided to the participating parties and the operator recommends either that production casing be set for a completion attempt or that the well be plugged and abandoned, and through plugging and abandonment, if no completion attempt shall be made. All cost, risk, expense...
Initial Test Well. The Initial Test Well for the Prospect shall be drilled at the approximate surface location and to the approximate bottom hole location and depth shown on Exhibit "C" attached hereto to test the formation(s) more particularly described therein, Final well locations (surface and bottom hole), together with the proposed total depth of the well and the formations to be tested shall be mutually agreed upon by ORX and PetroReal prior to spudding the Initial Test Well for the Prospect. PetroReal shall participate in the Initial Test Well for the Prospect to the extent of the PetroReal Participation Percentage. All operations for the drilling and testing of the Initial Test Well on the Prospect shall be conducted in accordance with the terms and conditions of the Operating Agreement attached hereto as Exhibit "D" and made a part hereof for all purposes. 4.
Initial Test Well. 2.1 Upon payment by Participant of the amount stated in paragraph 1.1 and prior to November 1, 2010, Participant agrees to drill one well on the Contract Acreage. The first well shall be defined as the Initial Test Well. The Initial Test Well on the Contract Acreage shall be drilled at a location on the Contract Acreage as mutually agreed upon by the parties hereto. Participant shall serve as the operator of the Contract Acreage and shall drill the Initial Test Well with due diligence in a workmanlike manner to a depth sufficient to test the base of the ▇▇▇▇▇ Formation (hereinafter called "Total Depth") unless the parties hereto agree to complete or abandon the Initial Test Well at a lesser depth. Failure by Participant to drill a well on the Contract Acreage by November 1, 2010, in the manner provided above shall cause Participant to forfeit all of its interest in the Contract Acreage to Pioneer.
Initial Test Well. 2.1 Farmee, at its sole cost, risk and expense, shall commence or cause to be commenced, the actual drilling of a Test Well at a location of its choice on the Subject Lands or on lands pooled or communitized therewith on or before , 2007, and shall thereafter drill the Test Well with due diligence and in a workmanlike manner and in accordance with good oil field practices to a depth sufficient to penetrate the 4th Bow Island formation and shall complete the Test Well as a producing well, shut-in gas well, or dry hole within a reasonable time after commence-ment. In the event Farmee should fail to timely commence the drilling of Test Well or complete the Test Well as specified herein, then the only consequence of such failure to perform shall be the forfeiture of any interest to be earned by Farmee in the Subject Lands and the automatic termination of this Agreement and all rights and privileges of Farmee hereunder.
2.2 In the Event Farmee is unable to reach the objective depth -in drilling any Test Well due to conditions beyond Farmee's control encountered subsurface, Farmee may commence a substitute Test Well within thirty (30) days from the cessation of drilling on the abandoned Test Well on a location of Farmee's choice on the Subject Lands and such substitute Test Well shall take the place of the abandoned Test Well for all purposes hereof.
2.3 Notwithstanding the foregoing, Farmee shall remain liable for and indemnify Farmor from any and all damages, liabili-ties or cause of action resulting from Farmee's actions relating to the Subject Lands.