In the oil and gas industry, a farmout contract is an agreement entered into as a “farmee” by the owner of one or more mining leases, known as a “farmer,” and by another company seeking a percentage of ownership of that lease or lease in exchange for services. The typical service described in the Farmout agreements is the drilling of one or more oil and/or gas wells. A farmout agreement is different from a conventional transaction between two oil companies and GaspĂ©es, because the main consideration is the provision of services and not the simple exchange of money. [1] The three main oil and gas extraction instruments were and are the oil and gas lease-sale agreement, the joint operating agreement and the agricultural agreement. Of the three, the lease is by far the oldest and has received most analysis from commentators and courts. However, as Professor John Lowe points out in his full article on farmout2 agreements since the end of The Second World War, the oil and gas farm is almost as important as the oil lease and the gas lease. It considers that this is partly a response to the increased risks and costs of deeper drilling and the proliferation of small oil companies willing to do business with their larger brothers.3 This article will define a farmout agreement, review the basis of its structure (the objectives of the parties and applicable tax legislation) and identify its main features. The next step will be to address some of the issues related to agricultural enterprises, with a focus on the most recent cases. Finally, it generally provides for the development of the FFarmout agreements, which the farmer attributes to the defined quantum of interest in the or rents after the transformation of the farm: (1) drilling an oil and/or gas well at the defined depth or formation or (2) drilling an oil and/or gas well and obtaining commercially viable production levels. [2] Farmout agreements are the second most common negotiated agreements in the oil and gas industry, behind oil and gas leasing. [3] For the farmer, the reasons for entering into a farmout agreement are the acquisition of production, the sharing of risks and the obtaining of geological information. Farmes often enter into farm agreements to obtain a surface position, or because they have to employ underutilized personnel or share risks, or because they want to obtain geological information.

[4] GulfSlope Energy, Inc ( ” GSPE” or “Farmor”) and Texas South Energy, Inc. (“Farmee”) intend to enter into this mandatory correspondence agreement in order to enter into a farm out agreement. The terms of this final farm out agreement are as follows: a Farmout contract differs from its farm contract, the sales and sale contract (PSA), insofar as PSA calls for an exchange of money or debt for an immediate transfer of assets, while the Farmout contract concerns an exchange of asset transfer services. In addition, the transfer often takes place at a later stage, namely. B.dem the time when the “merit barrier” was reached. [5] An agreement outlining how a third party can acquire an active interest in a well, lease or unit; prior to the implementation of a joint enterprise agreement CET ACCORD (this “contract”) is concluded, concluded and effective on July 23, 2010 by and between, BLACK RAVEN ENERGY, INC., a Nevada company (“FARMOR”), and ATLAS RESOURCES, LLC, a Pennsylvania limited liability company (“FARMEE”). CLAUSE 1 DEFINITIONS 4 CLAUSE 2 TRANSFER OF INTEREST 8 CLAUSE 3 CONDITIONS TO TRANSFER 10 CLAUSE 4 CONSIDERATION 15 CLAUSE 5 INTERIM PERIOD 22 CLAUSE 6 REPRESENTATIONS AND WARRANTIES OF THE PARTIES 24 CLAUSE 7 TAX 33 CLAUSE 8 CONFIDENTIALITY 35 CLAUSE 9 NOTICES 36 CLAUSE 10 LAW AND DISPUTE RESOLUTION 37 CLAUSE 11 FORCE MAJEURE 39 CLAUSE 12 DEFAULT 39 CLAUSE 1, if all the undersigned are executed, establishes a contract (the so-called “agreement”) between Spindletop Oil and Gas Co., (hereafter referred to as “Farmor” and Imperial Oil and Gas, Inc. (hereafter referred to as “Farmee”) relating to certain drilling and other drilling activities and other activities to be carried out by Farmee (hereafter referred to as “Farmee”), under certain conditions, to a cessio