The sale of a working interest
in which royalty interests or surface interests are retained, may not qualify.
In the event the defaulting working interest
owner does not fulfill its obligations to settle the outstanding indebtedness, Petrosearch can exercise its option which will increase its ownership in the Kallina 46 #1 well and the 438 acres of leasehold controlled by the well from a 16% working interest
after payout to a 100% working interest
before payout and 84% after payout of associated lease and well costs.
1 million in drilling costs, net to its 50% working interest
, which interest increases to 62.
Based upon the current diminished production due to hurricane-related damages, the current deficit for expenditures subject to recovery from future royalty income, estimated future capital expenditure projects for repairs or tie-backs to alternative pipelines, and additional potential future exploratory activities being considered by Working Interest
Owners, the Corporate Trustee does not expect there to be any cash income distributions during the remainder of 2006 and potentially during a portion or all of 2007.
Gastar's working interest
in the well is approximately 42% before casing point (BCP) and 50% after casing point (ACP).
The South Louisiana project, in which the Company maintains a 67% working interest
, targets a 10,200 foot Hayes sand updip of a well that produced over .
Gastar's working interest
will be approximately 56% BCP (67% ACP) in the Wildman Trust #2 well with Chesapeake Energy Corporation holding the remaining 44% BCP working interest
(33% ACP working interest
The company has 25% of the working interest
, which is equal to 18.
This first quarter 2006 deposit relates to an adjustment and correction by a Working Interest
Owner to its projected future capital expenditures.
Upon drilling of the Test Well, Surge will earn working interest
in the Farmout Lands per the following terms:
As previously reported, the documents governing the Trust's interests provide that, under certain circumstances, the working interest
owner may place all or a portion of the revenues that would otherwise be payable to the Trust in an escrow account, and, also as previously reported, the working interest
owner has previously escrowed certain amounts relating to each of the properties in which the Trust has an interest.
British Columbia: During 2005-Q4, we signed a farm-in agreement to earn a 40% working interest
in five-and-a-half sections of land in two prospects by drilling two commitment wells.