Alberta Farmout Agreement
Prepare a Farmout Agreement for oil and gas properties in Alberta with this document template.
- Test Well. The farmor agrees to start drilling the test well at its sole cost and risk. The farmee will then continue drilling to the contract depth, log and test, and either complete, equip or abandon the test well in accordance with the agreement.
- Encumbrances. If the interest of a party becomes encumbered, such encumbrance will be charged to and paid by that party.
- Cost Reimbursement. The farmee will reimburse the farmor on a per diem basis for rentals and penalties payable under the title document.
- Earned Interest Calculation. The farmee's earned interest in the farmout lands is calculated as 100% of the farmor's interest in the producing zones, and 50% of the remainder of the lands.
- Default. The agreement sets out the rights and remedies of each party in the event of default.
- Jurisdiction. The Farmout Agreement is a downloadable and customizable Canadian oil and gas contract intended for use in the Province of Alberta.
Last Updated: 24-October-2017