A farmout agreement is used when the "farmor" agrees to assign acreage to the "farmee" in return for the "farmee" performing specified drilling and testing obligations, with the "farmor" also reserving an interest in the acreage assigned and in the production from the wells drilled by the second company.
Kings New York Farm out Agreement: Providing for Single Well, with Dry Hole Earning an Assignment The Kings New York Farm out Agreement, specifically tailored for single well operations with the potential for a dry hole, offers a unique opportunity for oil and gas companies looking to share risks and maximize potential earnings. This detailed description outlines the key provisions and benefits associated with this agreement, highlighting its versatility and different types. When entering into a Kings New York Farm out Agreement, two parties farmrm outut operator (FOO) and the farmer (FE) — collaborate to explore a specific oil or gas well prospect. This agreement allows the FOO to earn an assignment, thereby converting them into an interest owner, in case the well turns out to be productive. If the well is deemed a dry hole, the FOO still earns an assignment, but with modified terms or conditions. The Kings New York Farm out Agreement provides a robust framework to guide the cooperation between the FOO and the FE. It clearly defines the roles and responsibilities of each party, ensuring transparency and minimizing potential disputes. The agreement also delineates the duration of the operation, financial commitments, and dispute resolution mechanisms. Key provisions of the agreement include a comprehensive exploration plan, well drilling and completion guidelines, and provisions for the allocation of costs and revenues based on the working interest percentages. These provisions help manage risks, enhance operational efficiency, and ensure fair financial distributions among the involved parties. There are different variations of the Kings New York Farm out Agreement tailored to specific scenarios. These variations include: 1. Single Well, Dry Hole Earning Assignment with Modified Terms: This type of Kings New York Farm out Agreement accounts for the possibility of an unsuccessful exploration outcome. In this case, the FOO still earns an assignment, but the terms and conditions may be adjusted, such as a reduced stake, modified obligations, or revised revenue sharing. 2. Single Well, Dry Hole Earning Assignment with No Modification: In this agreement type, the FOO earns an assignment without any modifications, even if the well is declared a dry hole. The parties involved have agreed to this condition upfront and are willing to accept the associated risks and potential financial implications. 3. Single Well, Dry Hole Earning Assignment with Termination Option: This variation allows the FE to terminate the agreement if the well is determined to be a dry hole. The termination option grants the FE the flexibility to exit the project and pursue alternative opportunities without any further obligations or assignments to the FOO. The Kings New York Farm out Agreement Providing for Single Well, with Dry Hole Earning an Assignment offers oil and gas companies a flexible framework to share risks while exploring the potential of a specific well. With its various types, this agreement allows companies to customize their involvement based on their risk appetite and specific objectives within the Kings New York region.Kings New York Farm out Agreement: Providing for Single Well, with Dry Hole Earning an Assignment The Kings New York Farm out Agreement, specifically tailored for single well operations with the potential for a dry hole, offers a unique opportunity for oil and gas companies looking to share risks and maximize potential earnings. This detailed description outlines the key provisions and benefits associated with this agreement, highlighting its versatility and different types. When entering into a Kings New York Farm out Agreement, two parties farmrm outut operator (FOO) and the farmer (FE) — collaborate to explore a specific oil or gas well prospect. This agreement allows the FOO to earn an assignment, thereby converting them into an interest owner, in case the well turns out to be productive. If the well is deemed a dry hole, the FOO still earns an assignment, but with modified terms or conditions. The Kings New York Farm out Agreement provides a robust framework to guide the cooperation between the FOO and the FE. It clearly defines the roles and responsibilities of each party, ensuring transparency and minimizing potential disputes. The agreement also delineates the duration of the operation, financial commitments, and dispute resolution mechanisms. Key provisions of the agreement include a comprehensive exploration plan, well drilling and completion guidelines, and provisions for the allocation of costs and revenues based on the working interest percentages. These provisions help manage risks, enhance operational efficiency, and ensure fair financial distributions among the involved parties. There are different variations of the Kings New York Farm out Agreement tailored to specific scenarios. These variations include: 1. Single Well, Dry Hole Earning Assignment with Modified Terms: This type of Kings New York Farm out Agreement accounts for the possibility of an unsuccessful exploration outcome. In this case, the FOO still earns an assignment, but the terms and conditions may be adjusted, such as a reduced stake, modified obligations, or revised revenue sharing. 2. Single Well, Dry Hole Earning Assignment with No Modification: In this agreement type, the FOO earns an assignment without any modifications, even if the well is declared a dry hole. The parties involved have agreed to this condition upfront and are willing to accept the associated risks and potential financial implications. 3. Single Well, Dry Hole Earning Assignment with Termination Option: This variation allows the FE to terminate the agreement if the well is determined to be a dry hole. The termination option grants the FE the flexibility to exit the project and pursue alternative opportunities without any further obligations or assignments to the FOO. The Kings New York Farm out Agreement Providing for Single Well, with Dry Hole Earning an Assignment offers oil and gas companies a flexible framework to share risks while exploring the potential of a specific well. With its various types, this agreement allows companies to customize their involvement based on their risk appetite and specific objectives within the Kings New York region.
