Common use of Option No Clause in Contracts

Option No. All necessary expenditures for the drilling, Deepening or Sidetracking, and testing of the well. When the well has reached its authorized depth, and all logs, cores, and other tests have been completed, and the results furnished to the parties, Operator shall give immediate notice to the Non-Operators having the right to participate in a Completion attempt whether or not Operator recommends attempting to Complete the well, together with Operator’s AFE for Completion costs if not previously provided. The parties receiving the notice shall have forty-eight (48) hours (exclusive of Saturday, Sunday, and legal holidays) in which to elect, by delivery of notice to Operator, to participate in a recommended Completion attempt or to make a Completion proposal with an accompanying AFE. Operator shall deliver any completion proposal, or any Completion proposal conflicting with Operator’s proposal, to the other parties entitled to participate in the Completion in accordance with the procedures specified in Article VI.B.

Option No. 2: All necessary expenditures for the drilling, Deepening or Sidetracking, Sidetracking and testing of the well. When the such well has reached its authorized depth, and all logs, cores, cores and other tests have been completed, and the results thereof furnished to the parties, Operator shall give immediate notice to the Non-Operators having the right to participate in a Completion attempt whether or not Operator recommends attempting to Complete the well, together with Operator’s AFE for Completion costs if not previously provided. The parties receiving the such notice shall have forty-eight (48) hours (exclusive of Saturday, Sunday, Sunday and legal holidays) in which to elect, elect by delivery of notice to Operator, Operator to participate in a recommended Completion attempt or to make a Completion proposal with an accompanying AFE. Operator shall deliver any completion such Completion proposal, or any Completion proposal conflicting with Operator’s proposal, to the other parties entitled to participate in the such Completion in accordance with the procedures specified in Article VI.B.