دیکشنری تخصصی مهندسی نفت - نسخه آنلاین

n: an area, usually outlined on a plat attached to a farmout agreement or described in an exhibit, that allows both parties the first right of refusal on leases acquired by either party after the agreement is executed.

n: an option right reserved by the granting company of a farmout to convert an overriding royalty to a working interest once the conditions for such back-in have been met. Compare election at casing point.

n: an agreement for the acquisition of mineral rights (i.e., oil and gas leases) in a checkerboard pattern of alternate tracts, usually beginning, in the case of farmouts, with the drill site tract.

v: to accept, as an operator, a farmout. See farmout.

v: for a lessee, to agree to assign a leasehold interest to a third party, subject to stipulated conditions. See farmout.

n: an agreement identical to a farmout, with the operator as the third party. The operator takes the farm-in. See farmout.

an outside party paying a concession owner all or a percentage of the drilling costs of a well in order to obtain a working interest in the land or well.

n: an agreement whereby the owner of a lease who does not wish to drill at the time agrees to assign the leasehold interest, or some part of it, to a third party who does wish to drill, conditional on the third partys drilling a well within the expiration date of the primary term of the lease. The assignment may include the entire interest together with dry hole money, or partial interest or entire interest with or without an override. If an override is retained, the owner of the lease may retain an option to convert such overriding royalty retained to an agreed-upon working interest. A farmout is distinguished from a joint operating agreement by the fact that the partner farming out does not incur any of the drilling costs. The primary characteristic of a farmout is the obligation of the third party to drill one or more wells on the farmout acreage as a condition prerequisite to completion of the transfer of title to such third party.

n: a contract by which two or more co-owners of the operating rights in a tract of land join to share the costs of exploration and possible development. Compare farmout.

a written agreement that sets the terms under which a property will be developed by the working interest owners.

n: an interest carved out of the lessees working interest. It entitles its owner to a fraction of production free of any production or operating expense, but not free of production or severance tax levied on production. An overriding royalty may be created by grant or by reservation. Commonly, an override is reserved by the assignor in a farmout agreement or other assignment. An overrides duration corresponds to that of the lease from which it was created.