Alberta Farmout and Participation Agreement

Prepare a Farmout and Participation Agreement with this fully editable template for Alberta oil and gas properties.

• If the interest of any party to the Agreement becomes encumbered, such encumbrance will be charged to and paid by that party.
• The farmor makes no warranty of title to the farmout lands or the title documents.
• The farmee will spud the test well and will drill the same to at least contract depth, lot and test, and either complete, cap or abandon it in accordance with the agreement and the Regulations.
• The farmee is responsible for obtaining and maintaining control of well insurance.
• Provision for drilling a substitute well.
• The farmee's earned interest in the farmout lands is calculated as 100% of the farmor's interest down to earning depth in the lands and title documents that comprise the test well spacing unit, subject to encumbrances, and a specified percentage of the remainder.
• Optional clauses for option well election.
• Provisions for calculating each party's share of expenses and percentage of interest.