Alberta Farmout and Option Agreement
Prepare a Farmout and Option Agreement with this document template for Alberta oil and gas wells.
- Test Well. The farmor will start drilling of 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.
- Option Well. The agreement includes provisions for drilling an option well if serious difficulties are encountered with the test well.
- Reimbursement of Costs. 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 will be 100% of the farmor's interest in the producing zones, and 50% of the remainder of the lands.
- CAPL Procedures to Apply. The CAPL PASC Accounting Procedure and specified clauses of the Operating Procedure will apply to the agreement.
- This downloadable form is intended for use only in the Province of Alberta, Canada.
Last Updated: 25-July-2021