Common use of Option Interests Clause in Contracts

Option Interests. If Laramie drills 4 Earning ▇▇▇▇▇, completed as ▇▇▇▇▇ capable of producing oil and/or gas in Paying Quantities, during the Drilling Term or extended Drilling Term as set forth in Section 3.3, and pays for the costs thereof in accordance with Section 7, below, then Laramie shall be entitled to exercise an option to acquire an undivided 50% of Dejour/Brownstone's right, title and interest in and to all or part of the Farmout Lands and Leases in which Laramie has not previously earned any interests hereunder by notifying Dejour/Brownstone, identifying the Farmout Lands and Leases as to which it wishes to exercise the option and tendering to Dejour/Brownstone good funds equal to $25 per net mineral acre for such option acreage within 60 days of the date that the fourth Earning Well is determined to be capable of producing oil and/or gas in Paying Quantities,. Upon receipt of such good funds, Dejour/Brownstone shall promptly execute an assignment, as provided in Section 6.2, to Laramie.