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.
A Nassau New York Farm out Agreement Providing for Single Well, with Dry Hole Earning an Assignment is a specific type of agreement commonly used in the oil and gas industry. This agreement involves the transfer or assignment of the right to drill and produce hydrocarbons from a specific oil or gas well located in Nassau, New York. In this arrangement, the armor (the owner of the oil or gas rights) grants the farmer (the party acquiring the rights) the opportunity to drill and produce from a chosen well. The agreement specifies that only a single well will be drilled and worked on under this arrangement. However, the term "dry hole earning an assignment" refers to a condition in the agreement where if the well drilled does not find any hydrocarbon reserves, the farmer may still earn an assignment of certain rights or acreage from the armor. This provision allows the farmer to potentially gain additional benefits or future opportunities, even if the initial drilling is unsuccessful. This type of Farm out Agreement also has variations based on the specifics of the terms negotiated between the parties involved. Some common types include: 1. Traditional Farm out Agreement: This is the standard version of the agreement, where the armor grants the farmer the right to drill and produce from a single well, with the possibility of the farmer earning an assignment in case of a dry hole. 2. Partial Farm out Agreement: In this variation, the armor grants the farmer a limited portion of the oil or gas rights for drilling and production purposes. The terms regarding the single well and dry hole earning an assignment still apply. 3. Time-Limited Farm out Agreement: This type of agreement specifies a specific timeframe within which the farmer must drill the well and potentially earn an assignment. If the timeline is not met, the rights may revert to the armor. 4. Expanded Farm out Agreement: In certain cases, the agreement may allow for the possibility of drilling multiple wells instead of just a single one. The terms regarding the dry hole earning an assignment are still applicable to these additional wells. Overall, the Nassau New York Farm out Agreement Providing for Single Well, with Dry Hole Earning an Assignment is a specific type of arrangement used in the oil and gas industry to transfer drilling and production rights, with the potential for additional benefits in case of a dry hole. The specific terms of the agreement can vary based on the negotiated provisions chosen by the parties involved.A Nassau New York Farm out Agreement Providing for Single Well, with Dry Hole Earning an Assignment is a specific type of agreement commonly used in the oil and gas industry. This agreement involves the transfer or assignment of the right to drill and produce hydrocarbons from a specific oil or gas well located in Nassau, New York. In this arrangement, the armor (the owner of the oil or gas rights) grants the farmer (the party acquiring the rights) the opportunity to drill and produce from a chosen well. The agreement specifies that only a single well will be drilled and worked on under this arrangement. However, the term "dry hole earning an assignment" refers to a condition in the agreement where if the well drilled does not find any hydrocarbon reserves, the farmer may still earn an assignment of certain rights or acreage from the armor. This provision allows the farmer to potentially gain additional benefits or future opportunities, even if the initial drilling is unsuccessful. This type of Farm out Agreement also has variations based on the specifics of the terms negotiated between the parties involved. Some common types include: 1. Traditional Farm out Agreement: This is the standard version of the agreement, where the armor grants the farmer the right to drill and produce from a single well, with the possibility of the farmer earning an assignment in case of a dry hole. 2. Partial Farm out Agreement: In this variation, the armor grants the farmer a limited portion of the oil or gas rights for drilling and production purposes. The terms regarding the single well and dry hole earning an assignment still apply. 3. Time-Limited Farm out Agreement: This type of agreement specifies a specific timeframe within which the farmer must drill the well and potentially earn an assignment. If the timeline is not met, the rights may revert to the armor. 4. Expanded Farm out Agreement: In certain cases, the agreement may allow for the possibility of drilling multiple wells instead of just a single one. The terms regarding the dry hole earning an assignment are still applicable to these additional wells. Overall, the Nassau New York Farm out Agreement Providing for Single Well, with Dry Hole Earning an Assignment is a specific type of arrangement used in the oil and gas industry to transfer drilling and production rights, with the potential for additional benefits in case of a dry hole. The specific terms of the agreement can vary based on the negotiated provisions chosen by the parties involved.
