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.
The Kings New York Farm out Agreement Providing For Multiple Wells with Dry Hole Earning An Assignment is a comprehensive contract arrangement that governs the exploration and drilling activities in the oil and gas industry. This agreement specifically addresses cases where multiple wells are drilled, but result in dry holes, meaning no commercially viable quantities of oil or gas are discovered. In such situations, the agreement outlines the conditions under which the party drilling the dry hole can still earn an assignment or the rights to another drilling opportunity. Keywords: Kings New York Farm out Agreement, multiple wells, dry hole, earning an assignment, oil and gas industry, exploration, drilling activities, commercially viable quantities, rights. Types of Kings New York Farm out Agreement Providing For Multiple Wells with Dry Hole Earning An Assignment: 1. Standard Kings New York Farm out Agreement: This is the basic version of the agreement that specifies the terms and conditions for the farm out process, including the drilling of multiple wells and the potential for encountering dry holes. 2. Modified Kings New York Farm out Agreement: This type of agreement includes additional provisions or modifications tailored to the specific circumstances of the project or parties involved. It may address issues such as cost-sharing, well abandonment procedures, or variations in earn-in requirements. 3. Conditional Kings New York Farm out Agreement: In some cases, an agreement may be structured as conditional, meaning that the party drilling the dry hole can only earn an assignment if certain conditions or criteria are met. These conditions could include subsequent successful drilling efforts, technical evaluations, or financial obligations. 4. Single Well Assignment Kings New York Farm out Agreement: While the primary focus of the typical agreement is on multiple wells, there may be instances where a party is only entitled to an assignment based on the drilling of a single well. This type of agreement is designed to accommodate such scenarios. It is important to note that the specific terminology, provisions, and variations of the Kings New York Farm out Agreement Providing For Multiple Wells with Dry Hole Earning An Assignment can differ based on the negotiations between the parties involved and the specific requirements of the project.The Kings New York Farm out Agreement Providing For Multiple Wells with Dry Hole Earning An Assignment is a comprehensive contract arrangement that governs the exploration and drilling activities in the oil and gas industry. This agreement specifically addresses cases where multiple wells are drilled, but result in dry holes, meaning no commercially viable quantities of oil or gas are discovered. In such situations, the agreement outlines the conditions under which the party drilling the dry hole can still earn an assignment or the rights to another drilling opportunity. Keywords: Kings New York Farm out Agreement, multiple wells, dry hole, earning an assignment, oil and gas industry, exploration, drilling activities, commercially viable quantities, rights. Types of Kings New York Farm out Agreement Providing For Multiple Wells with Dry Hole Earning An Assignment: 1. Standard Kings New York Farm out Agreement: This is the basic version of the agreement that specifies the terms and conditions for the farm out process, including the drilling of multiple wells and the potential for encountering dry holes. 2. Modified Kings New York Farm out Agreement: This type of agreement includes additional provisions or modifications tailored to the specific circumstances of the project or parties involved. It may address issues such as cost-sharing, well abandonment procedures, or variations in earn-in requirements. 3. Conditional Kings New York Farm out Agreement: In some cases, an agreement may be structured as conditional, meaning that the party drilling the dry hole can only earn an assignment if certain conditions or criteria are met. These conditions could include subsequent successful drilling efforts, technical evaluations, or financial obligations. 4. Single Well Assignment Kings New York Farm out Agreement: While the primary focus of the typical agreement is on multiple wells, there may be instances where a party is only entitled to an assignment based on the drilling of a single well. This type of agreement is designed to accommodate such scenarios. It is important to note that the specific terminology, provisions, and variations of the Kings New York Farm out Agreement Providing For Multiple Wells with Dry Hole Earning An Assignment can differ based on the negotiations between the parties involved and the specific requirements of the project.
