Alberta Farmout Letter Agreement

Prepare a Farmout Letter Agreement for oil and gas properties in Alberta with this downloadable template.

• Farmee will commence drilling of the earning well at its sole cost and risk. Farmee will then continue drilling to the contract depth, log and test, and either complete, equip or abandon the well in accordance with the agreement.
• Provisions for drilling a substitute well if serious difficulties are encountered and the first well is abandoned.
• Farmee's earned interest in the farmout lands is calculated as undivided 100% of Farmor's interest in the producing zones, undivided 50% of the remainder of the lands.
• Methods of calculating Farmor's royalty on Farmee's interest in crude oil and crude naphtha, natural gas, and all other hydrocarbons.
• Farmor is responsible for all charges payable with respect to the farmout lands.

This Alberta Farmout Letter Agreement template is fully editable and can be easily customized to meet your needs.