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.
Kansas Area of Mutual Interest (AMI) is a designated geographical region in the state of Kansas, which involves collaboration and mutual understanding between multiple parties for the exploration and development of oil and gas resources. An AMI is a contractual agreement that delineates the area where oil and gas operators combine their resources, efforts, and knowledge to identify, lease, and jointly develop hydrocarbon reservoirs. In Kansas, several types of AMIS can be found, such as: 1. Geographical-based AMI: This type of AMI is defined by a specific area within Kansas, comprising multiple counties or a specific geographic framework. It allows operators to work collectively within the defined boundaries to explore and develop hydrocarbon reserves efficiently. 2. Stack Play AMI: The stacked reservoir formations in Kansas, such as the Mississippian Lime, Cherokee, Marathon, and others, have led to the emergence of Stack Play AMIS. Stack Play AMIS focus on the development of multiple overlapping reservoirs, which provide opportunities for increased production and operational synergies. 3. Shale Play AMI: Kansas is known for the presence of shale formations like the Mississippian Lime or the Kansas City Group. Shale Play AMIS concentrate on the exploration and extraction of hydrocarbons from these shale formations, using technologies like horizontal drilling and hydraulic fracturing. 4. Conventional AMI: While the industry has witnessed a shift towards unconventional resources, there are still conventional reservoirs of oil and gas in Kansas. Conventional AMIS aim to exploit these traditional reservoirs, typically targeting sandstone, limestone, or dolomite formations. Within an AMI, operators collaborate by sharing data, knowledge, and resources, which can include geological and geophysical information, drilling techniques, infrastructure, and equipment. This collaborative approach helps to optimize decision-making, reduce costs, and minimize the environmental impact associated with exploration and production activities. In addition to the types mentioned above, the Kansas Area of Mutual Interest can encompass variations depending on specific lease agreements, economic interests, or shared infrastructure developments. These variations can make AMIS more flexible and adaptable to the needs and objectives of the participating parties. By engaging in an AMI, operators in Kansas can efficiently explore and develop their oil and gas resources while fostering a spirit of cooperation and mutually beneficial relationships. The establishment of AMIS enables companies to pool their expertise, invest in shared infrastructure, and ultimately maximize the economic potential of Kansas' oil and gas reserves.
