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 Mississippi Area of Mutual Interest (AMI) is an important term used in the oil and gas industry to define certain geographic regions where multiple parties share common exploration and production interests. Specifically, it refers to a specific area where companies cooperate to explore, develop, and produce oil and gas resources. The term "Mississippi" in this context does not refer to the state, but rather to the geological formation known as the Mississippi Lime. The Mississippi Lime is an extensive carbonate rock formation that stretches across multiple states in the central United States, including Kansas, Oklahoma, and parts of Nebraska and Texas. This reservoir has attracted significant attention from oil and gas companies due to its potential for oil and natural gas production. Within the larger Mississippi Lime area, there are several distinct types of AMIS that can be identified based on specific geological features, ownership structure, or cooperative agreements between companies. These different types of AMIS include: 1. Geographic AMI: This refers to a defined geographical area within the broader Mississippi Lime region, where multiple companies or operators have a shared exploration and production interest. The boundaries of a geographic AMI can be delineated based on factors such as well results, geologic data, or existing leasehold ownership. 2. Operator-led AMI: In this type of AMI, a specific operator takes the lead in organizing and coordinating exploration and development activities within a designated area. Other companies can join the AMI and participate in joint drilling programs, sharing costs, and risks. 3. Non-operator AMI: This type of AMI is formed by companies that do not hold the operator ship but have an active interest in the region. Non-operators collaborate with the operator to contribute to the exploration and development efforts within the AMI. 4. Cooperative AMI: Sometimes, multiple companies enter into formal agreements, such as joint ventures or production sharing contracts, to collectively explore and develop oil and gas resources within a specific area. Such agreements enable the parties to pool resources, technical expertise, and financial investments to maximize the potential of the AMI. The establishment of a Mississippi Area of Mutual Interest allows participating companies to share the risks associated with exploring and producing in complex geological formations such as the Mississippi Lime. By pooling their experience, resources, and technical knowledge, companies can maximize the efficiency and effectiveness of their operations, reduce costs, and improve the overall success rate of drilling activities. In summary, the Mississippi Area of Mutual Interest refers to a collaboration between oil and gas companies to jointly explore and develop resources in the Mississippi Lime formation. Different variations of AMIS can be identified depending on geological characteristics, ownership structure, and cooperative agreements between the operators and non-operators.
