This form creates an Area of Mutual Interest ( AMI ) comprising the Contract Area. During the term of this AMI, if any Party acquires all or any interest in any Oil and Gas Leases, any mineral interest, or any farmouts or other contracts which affect lands and minerals lying within the AMI, the Acquiring Party shall promptly advise each of the other Parties of the acquisition, at which time each Offeree shall have the right to acquire its proportionate interest in the Oil and Gas Interest.
The Delaware Area of Mutual Interest (AMI) is a concept in the field of oil and gas exploration and production. It refers to a specific geographic region that is agreed upon by multiple parties, typically oil and gas companies or leaseholders, to jointly develop and explore for hydrocarbon resources. The AMI is established through legal agreements and allows the involved parties to collaborate and share information, resources, and risks related to exploration activities within the designated area. The Delaware Basin, located within the larger Permian Basin, is a prominent region known for its vast oil and gas reserves. Given its potential, it has attracted numerous stakeholders who have carved out multiple AMIS within the Delaware Basin. Below are a few different types of Delaware AMIS: 1. Operator-led AMI: In this type of AMI, an operator (usually a major oil or gas company) acts as the primary lead and manages the exploration and development activities. The operator often holds the largest ownership interest in the AMI and coordinates with other interested parties, such as non-operators or leaseholders, to jointly participate and contribute to the efforts. 2. Non-operator-led AMI: This type of AMI is led by a non-operator, which can be a smaller oil and gas company or an investor group. They take charge of managing the AMI, coordinating the participating entities, and overseeing the exploration and production activities. Non-operator-led AMIS can offer smaller companies an opportunity to leverage the resources and expertise of multiple partners. 3. Joint Venture AMI: In some cases, multiple companies come together to form a joint venture within the Delaware Basin. This joint venture establishes an AMI to consolidate their collective resources and capabilities. Each company involved contributes capital, expertise, and technical knowledge, pooling their efforts to achieve more efficient exploration and development operations within the designated AMI. 4. State and Federal Lease Area AMI: The Delaware Basin lies in parts of Texas and New Mexico, encompassing both state and federal land. In this AMI type, state and federal leaseholders, which may include government entities or private companies, form an agreement to collaborate on exploration activities specific to their respective leased areas. This allows for better coordination in planning, sharing infrastructure, and minimizing conflicts related to the development of adjacent properties. In summary, the Delaware Area of Mutual Interest (AMI) is a framework for collaboration among oil and gas companies and leaseholders operating within the Delaware Basin. By designating a specific geographic region, companies can jointly explore and develop hydrocarbon resources while sharing risks, information, and resources. Different types of Delaware AMIS include operator-led, non-operator-led, joint venture, and state and federal lease area AMIS. These agreements promote efficient and coordinated exploration and production efforts, maximizing the potential of the highly productive Delaware Basin.
