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.
The Arkansas Area of Mutual Interest (AMI) is a term used in the oil and gas industry, specifically within the realm of exploration and production. It refers to a geographical region in the state of Arkansas where multiple parties have a shared interest in drilling and producing natural gas and oil reserves. The AMI acts as a cooperative agreement between companies in order to effectively and efficiently explore and develop hydrocarbon resources within this specific area. The purpose of establishing an AMI is to outline a framework for collaboration and joint efforts among different operators and stakeholders. It helps promote the sharing of data, infrastructure, and resources, leading to reduced costs and increased success rates. By pooling their expertise, equipment, and knowledge, companies within the Arkansas AMI can minimize risks associated with exploration activities while maximizing the potential for hydrocarbon discoveries. The Arkansas AMI often consists of designated acreages or blocks within a defined geographical boundary. These blocks are typically distributed among the participating companies based on their respective interests, financial investments, and operational capabilities. Often, companies may hold different working interests in these blocks, indicating the proportion of ownership and responsibility in drilling operations and production. In addition to the general concept of the Arkansas AMI, there are various types or subcategories that can be identified, depending on specific industry requirements and agreements. Some of these include: 1. Conventional AMI: This type of AMI involves the exploration and production of conventional oil and gas reserves found in traditional reservoirs, such as sandstones, limestones, or carbonates. Companies within the Arkansas AMI collaborate to uncover and extract hydrocarbons through conventional drilling and completion techniques. 2. Unconventional AMI: With the rise of unconventional resources, particularly shale gas and tight oil formations, this type of AMI focuses on the exploration and production of such resources within the state of Arkansas. Operators work together to develop innovative techniques, including horizontal drilling and hydraulic fracturing, to unlock the vast potential of these unconventional reservoirs. 3. Development AMI: This category is specific to an AMI established after initial discoveries have been made. It primarily represents an agreement among companies to jointly develop and exploit the known hydrocarbon reserves within the defined area. Companies collaboratively invest in infrastructure, drilling wells, and implementing efficient production strategies to maximize hydrocarbon recovery. 4. Environmental AMI: In some instances, an AMI may be established with a unique focus on environmental goals while conducting exploration and production activities. This could involve adopting sustainable practices, minimizing ecological impacts, and ensuring compliance with environmental regulations. By collectively addressing environmental challenges, companies aim to maintain responsible operations within the Arkansas AMI. Overall, the Arkansas Area of Mutual Interest represents a strategic platform for collaboration among oil and gas operators. It enables them to combine resources, expertise, and technology to explore, develop, and produce hydrocarbon reserves in a cost-effective and environmentally conscious manner.
