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.
Nevada Area of Mutual Interest (AMI) refers to a legal term commonly used in the oil and gas industry that pertains to a specific geographical area within the state of Nevada where multiple entities hold leases or rights for exploration and production activities. It is important to mention that Nevada does not have a significant history of oil and gas production compared to other states, but the concept of AMI can still be applicable in certain cases. In a general sense, an Area of Mutual Interest is an agreement between two or more parties with separate oil and gas interests within a defined geographic area. The purpose of an AMI is to encourage cooperation and prevent fragmentation of resources by allowing the parties involved to share information, technology, and resources, ultimately maximizing the overall success and efficiency of any potential investments or developments within that specific area. Different types of Nevada Area of Mutual Interest may include: 1. Basins or geological formations: AMIS can be established based on specific basins or geological formations within Nevada, such as the Basin and Range Province or the Great Basin, where interested parties collaborate to explore and potentially extract oil and gas resources. 2. Leased areas: AMIS can also be formed concerning leased or permitted areas within Nevada, where multiple companies or entities hold rights, leases, or permits for oil and gas exploration and production. The AMI can serve as the framework for joint ventures or partnerships, where companies pool their resources and knowledge to maximize the potential of their leased areas collectively. 3. Exploration plays: AMIS can be established for specific exploration plays within Nevada, which refer to potential untapped hydrocarbon reserves in an area. Companies interested in exploring and developing these plays may enter into AMIS to combine resources and expertise, minimizing risks and increasing the likelihood of success. It should be noted that the specific terms and conditions of a Nevada Area of Mutual Interest can vary depending on the involved parties and the objectives they wish to achieve. The agreement typically outlines the boundaries of the AMI, the rights and obligations of each participant, the governance structure, data-sharing mechanisms, the process for making joint investment decisions, and the allocation of costs and revenues. In summary, Nevada Area of Mutual Interest refers to a legally binding agreement between multiple parties interested in oil and gas exploration and production within a specific area in Nevada. It aims to foster cooperation, resource sharing, and maximize the efficiency and success of potential developments. These agreements can be based on geological formations, leased areas, or exploration plays, depending on the interests of the involved parties.
