Common use of Production Tests Clause in Contracts

Production Tests. When the Operator has drilled the Test Well to Contract Depth and if Petroleum Substances from any zone in the Joint Lands are reasonably anticipated to be in Paying Quantities, Eternal, as Operator, shall case the Test Well and: (a) conduct production tests as soon as practicable if Petroleum Substances other than natural gas in Paying Quantities is indicated; or (b) if Petroleum Substances composed predominantly of natural gas in Paying Quantities is indicated, (i) conduct production tests as soon as practicable; or (ii) Cap the Test Well and conduct production tests on or before the later of the first anniversary date of the Test Well drilling rig release and as soon as practicable after an economic market for those Petroleum Substances becomes available, provided that, if Eternal, as operator for and on behalf of the Farmors, has not fulfilled its obligations within one year of the drilling rig release of the Test Well, Eternal shall, at the end of that year and every 6 months thereafter until Eternal has fulfilled its obligations, give notice to the Parties of its plans to production test and produce the Test Well, if any. When Eternal has conducted the production tests, Eternal shall finish the Completion, Capping or Abandonment of the Test Well as soon as practicable.

Production Tests. When the Operator either Eternal or Passport, as applicable, has drilled the Test Option Well to Contract Depth and if Petroleum Substances from any zone in the Joint Option Lands are reasonably anticipated to be in Paying Quantities, Eternaleither Eternal or Passport, as Operatorapplicable, shall case the Test Option Well and: (a) conduct production tests as soon as practicable if Petroleum Substances other than natural gas in Paying Quantities is indicated; or (b) if Petroleum Substances composed predominantly of natural gas in Paying Quantities is indicated, (i) conduct production tests as soon as practicable; or (ii) Cap the Test Option Well and conduct production tests on or before the later of the first anniversary date of the Test Option Well drilling rig release and as soon as practicable after an economic market for those Petroleum Substances becomes available, provided that, if either Eternal, as operator for and on behalf of the Farmors, or Passport, as applicable, has not fulfilled its obligations within one year of the drilling rig release of the Test Option Well, either Eternal or Passport, as applicable, shall, at the end of that year and every 6 months thereafter until Eternal such Party has fulfilled its obligations, give notice to the Parties of its plans to production test and produce the Test Option Well, if any. When either Eternal or Passport, as applicable, has conducted the production tests, Eternal such party shall finish the Completion, Capping or Abandonment of the Test Option Well as soon as practicable.