Initial Well Clause Samples

Initial Well. The Operator shall serve an Operation Notice to the Parties for the drilling of the Initial Well. Notwithstanding the provisions for Commencement in Clause 10.03 of the Operating Procedure, the Parties agree that Commencement of the Initial Well shall occur on or before the Obligation Date. Except as otherwise provided in the preceding sentence, the Operating Procedure shall apply to the Initial Well.

Initial Well. On or before May 31st, 2006, or such other mutually agreed date, the Farmee shall participate in the drilling of a minimum of one well (the “Initial Well”) substantially on the terms set out in the Operating Agreement. The Farmee shall have the option but not the obligation to earn up to a 25% Working Interest (WI) in the Initial Well by paying up to 33.33% of all costs and expenses incurred for the joint account under the Operating Agreement respecting the drilling and completion of said Well to its objective depth. Star shall provide notice to the Farmee of the drilling of the Initial Well together with the Authority for Expenditure as described below therefore required at least 15 days prior to the anticipated spud date of the Well, and the Farmee shall have 7 days from receipt of such notice to elect by notice in writing to Star to participate in that Well. Failure to respond within such 7-day period shall be deemed an election by the Farmee not to participate. If the Farmee elects or is deemed to elect not to participate in a Well the Farmee shall maintain their right to participate in any Well proposed thereafter. Once the Initial Well has been drilled to its objective depth the Farmee shall have the right to elect, upon receiving all information available in respect of the Initial Well, to participate in the setting of production casing for and completion of the Initial Well as described in the Authority for Expenditure. If the Farmee elects not to participate in the proposed casing and completion of the Initial Well and such operation is carried out, the Farmee shall be subject to those penalties applicable pursuant to the Operating Agreement. If all parties with an interest in the Initial Well elect to abandon it, the Farmee shall pay its WI share of all costs associated with the plugging and abandoning the Initial Well.

Initial Well. Following Petrogen's signing and delivery of the Assignment and Bazmo's payment of the Cash Consideration, Petrogen and Bazmo will agree upon a location on the Leases and a spud date for the drilling of a well ("INITIAL WELL") to test the Miocene formation. Such agreement shall be memorialized in a detailed Authority for Expenditure ("AFE"). Bazmo will pay thirty-three and one-third percent of eight-eighths (33.33% of 8/8) of the costs for the Initial Well until it is either plugged and abandoned as a dry hole or completed and producing into the tanks or a sales pipeline at or above the Miocene formation. To the extent that costs for the Initial Well exceed one-hundred ten percent (110%) of the AFE'd costs, Bazmo will pay only twenty-five percent (25%) of the costs that exceed one-hundred ten percent (110%) of the costs incurred in drilling and completing the Initial Well. After the Initial Well, Bazmo will pay its twenty-five percent of eight-eighths (25% of 8/8) share of all operations on the Leases.

Initial Well. As additional consideration for this Agreement, BEUSA agrees to commence or cause to be commenced the drilling of a well in search of oil and/or natural gas in commercial quantities (the "Initial Well")

Initial Well. On or before April 30, 2010, Operator shall commence the drilling of a well for oil and gas at the following location: and shall continue the drilling of the well with due diligence to an approximate depth of 4,500’, unless granite, or other practically impenetrable substance or condition in the hole, which renders further drilling impractical, is encountered at a lesser depth, or unless all parties agree to complete or abandon the well at a lesser depth. Operator shall make reasonable tests of all formations encountered during drilling which give indication of containing Oil and Gas in quantities sufficient to test, unless this Agreement shall be limited in its application to a specific formation or formations in which event Operator shall be required to test only the formation or formations to which this Agreement may apply. If, in Operator’s judgment, the well will not produce Oil or Gas in paying quantities, and it wishes to plug and abandon the well as a dry hole, the provisions of Article VI.E.1. shall then apply.

Initial Well. In respect of section 3.2 of the Agreement the same is amended as follows: “Separately and not dependent on the other’s participation, each of 858642 and ▇▇▇▇▇▇▇ shall pay 9.375% of the actual cost of re-entering and production testing of the Initial Well to a depth of 1,650 metres. API estimates the total cost at roughly $425,000 Cdn.

Initial Well. Operator shall commence the drilling of a well in Section 29, T II N., R. 17 E., Umiat Meridian, Alaska, on or before March 15, 2008 (the "Initial Well"). The Initial Well shall be drilled to a depth of 11,000' or to a depth sufficient to test the Kemik formation, whichever is the lesser depth. Operator shall cause the drilling of the Initial Well at the expense of the Parties in accordance with all of the terms and conditions of this Agreement. AU costs incurred by Operator under this Agreement, including without limitation the costs of constructing an ice road and drilling pad, shall be borne by the Parties in accordance with their respective Participating Interests. As between the Parties, all operations on the Initial Well shall be conducted in accordance with the tenus and conditions of the Operating Agreement (described in Section 4 below). On or before 10 days after receipt by True North of an authorization for expenditure (the "AFE") for the Initial Well, True North shall return one (1) executed and approved copy of the AFE to Operator and shall pay to Operator 25% of True North's Participating Interest share of the estimated costs for the Initial Well (the "AFE Costs"). Upon the spudding of the Initial Well, True North shall pay to Operator the remaining 75%, of True North's Participating Interest share of the AFE Costs for the Initial Well. If drilling operations for the Initial Well are not commenced on or before March 15, 2008, this Agreement shall terminate, and Operator shall promptly return to True North the AFE Costs paid by True North to Operator, less True North's 8.5% Participating Interest share of any sunk costs related to the Initial Well, including but not limited to permitting costs, rig costs, insurance costs, bonding costs, and any other non-refundable costs which were incurred by Operator under the AFE.

Initial Well. WEJCO and Participant have agreed to re-enter the ▇▇▇▇▇▇▇ H-1, to a depth of approximately 3400 feet or to a depth that will adequately tests the Lower ▇▇▇▇▇▇ Series; at a legal location within the boundaries of the ▇▇▇▇▇▇▇ English Survey, ▇▇▇▇▇ County, Texas in accordance with the terms and conditions herein. Operator hereby agrees to commence, or cause to be commenced, operations for the Initial Well as soon as practical after all interest has been placed and all funds have been received; and once operations are commenced, to prosecute the same with due diligence and in a good and workmanlike manner to a depth as the joint owners may deem necessary to adequately test the previously mentioned ▇▇▇▇▇▇ Series as shown in the well log of the Wejco #H1 ▇▇▇▇▇▇▇ well, provided to the Participant. Such well shall be evaluated in accordance with reasonable and prudent Operator standards. Operator will manage all engineering services, including drilling and work over rigs, logging, cementing, perforating and any testing of the Initial Well and any Subsequent ▇▇▇▇▇ drilled on the lease and included within the Prospect AMI.

Initial Well a. On or before the [___] day of [________], 2011, Operator shall commence the drilling of a well for oil and gas at the location shown on Exhibit “E” attached hereto and made a part hereof and shall thereafter continue the drilling of the well with due diligence to [the Completion Point as defined in, and in accordance with, _______________], unless granite or other practically impenetrable substance or condition in the hole, which renders further drilling impractical, is encountered at a lesser depth, or unless all parties agree to complete or abandon the well at a lesser depth. b. Operator shall make reasonable tests of all formations encountered during drilling which give indication of containing oil and gas in quantities sufficient to test, unless this agreement shall be limited in its application to a specific formation or formations, in which event Operator shall be required to test only the formation or formations to which this agreement may apply. It is contemplated that the Initial Well, pursuant to the Participation Agreement to which this Operating Agreement is attached, will be drilled to the depth of [__________] and thereafter drilled as a horizontal borehole to a projected length of [__________]. All references to “Initial Well” or “Subsequent Operations” shall include operations on a horizontal borehole within the Woodbine Formation. If, in Operator’s judgment, the well will not produce oil or gas in paying quantities, and it wishes to plug and abandon the well as a dry hole, the provisions of Section 6.5 shall thereafter apply.