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.
Utah Farmout Agreement Providing For Single Well, with Dry Hole Earning An Assignment
Category:
State:
Multi-State
Control #:
US-OG-221
Format:
Word;
Rich Text
Instant download
Description
Free preview
How to fill out Utah Farmout Agreement Providing For Single Well, With Dry Hole Earning An Assignment?
If you want to complete, acquire, or print out legal document layouts, use US Legal Forms, the most important assortment of legal forms, that can be found on the web. Take advantage of the site`s easy and practical look for to get the files you require. A variety of layouts for organization and personal functions are sorted by categories and states, or search phrases. Use US Legal Forms to get the Utah Farmout Agreement Providing For Single Well, with Dry Hole Earning An Assignment in a few clicks.
In case you are already a US Legal Forms client, log in to the profile and click the Obtain option to get the Utah Farmout Agreement Providing For Single Well, with Dry Hole Earning An Assignment. You may also accessibility forms you earlier downloaded inside the My Forms tab of the profile.
Should you use US Legal Forms the first time, refer to the instructions beneath:
- Step 1. Ensure you have chosen the form to the right area/country.
- Step 2. Utilize the Preview solution to look over the form`s information. Don`t forget to read through the explanation.
- Step 3. In case you are unsatisfied using the develop, use the Lookup area near the top of the screen to find other variations in the legal develop template.
- Step 4. Once you have discovered the form you require, select the Buy now option. Choose the costs prepare you like and include your references to sign up for an profile.
- Step 5. Procedure the deal. You can utilize your charge card or PayPal profile to perform the deal.
- Step 6. Select the file format in the legal develop and acquire it on your own device.
- Step 7. Comprehensive, modify and print out or signal the Utah Farmout Agreement Providing For Single Well, with Dry Hole Earning An Assignment.
Every legal document template you purchase is your own permanently. You possess acces to every single develop you downloaded inside your acccount. Click on the My Forms section and decide on a develop to print out or acquire once more.
Contend and acquire, and print out the Utah Farmout Agreement Providing For Single Well, with Dry Hole Earning An Assignment with US Legal Forms. There are millions of professional and status-certain forms you can utilize for the organization or personal demands.
Form popularity
FAQ
While the first is the entry of companies into O&G exploration, the farm-out takes place when a business with the current concession is willing to give up part or all of its available area. Making a simpler analogy about the process, the farm-in is the buyer and the farm-out is the seller.
A farm out is a type of agreement where a party that has a working interest to a gas and oil lease will grant that interest to another party. The other party will then be contractually obligated to meet specific conditions, such as setting up a drill in a specific location, drilling to an agreed upon depth, etc.
Also known as a farm-in agreement. A type of contract through which an investor (a farmee) may acquire an interest in an upstream project from an existing project participant (a farmor). It is typically used in the exploration or development stage of a project.
What Is a Farmout? A farmout is the assignment of part or all of an oil, natural gas, or mineral interest to a third party for development. The interest may be in any agreed-upon form, such as exploration blocks or drilling acreage.
One example is where it is projected that the farmee will pay for 75% of the drilling costs, the parties may agree that upon meeting the earning barrier, the farmee will obtain a 75% interest in the acreage committed to the well, or even the entire contract area.
out agreement, the key agreement documenting a transaction whereby a third party agrees to acquire an interest in an upstream oil and gas asset (licence or other form of concession) from one or more of the current owners in return for performing certain work obligations, such as the acquisition of seismic, the ...
1. n. [Oil and Gas Business] When the election to convert the overriding royalty to working interest takes place, it is known as a back-in after payout (BIAPO).
A farmout is when a resource-producing property is outsourced for development to a third party or farmee. The farmee pays the owner (farmor) royalties on income generated from the outsourced activities. Farmouts are most common in natural resources exploration and extraction, such as with oil, gas, or minerals mining.