Picture of Alberta Farmout and Option Agreement Picture of Alberta Farmout and Option Agreement Picture of Alberta Farmout and Option Agreement Picture of Alberta Farmout and Option Agreement

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.
  • Available in MS Word format.
Document Type: Microsoft Word
Last Updated: 04-April-2025
SKU: 701
$29.99
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Picture of Alberta Farmout Agreement

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.
$29.99
Picture of Alberta Farmout Agreement with Substitute Well Clauses

Alberta Farmout Agreement with Substitute Well Clauses

Buy and download this Farmout Agreement for Alberta oil and gas properties which includes provisions for a substitute well.

  • Drilling of Earning Well. The farmee will begin drilling the earning well at its sole cost and risk. The well will be drilled to the contract depth and the farmee will log and test, and either complete, equip or abandon the well in accordance with the agreement.
  • Substitute Well. The agreement contains provisions for drilling a substitute well if serious difficulties are encountered and the first well is abandoned.
  • Calculation of Earned Interest. The 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.
  • Royalty Calculation. The agreement sets out how the farmor's royalty will be calculated on the farmee's interest in crude oil and crude naphtha, natural gas, and all other hydrocarbons.
  • Payment of Costs. The farmor is responsible for all charges payable with respect to the farmout lands.
  • Governing Law. This Farmout Letter Agreement template is intended to be used only for lands within the Province of Alberta, Canada.
  • Format. This is a downloadable legal form which can be modified and re-used. Available as a MS Word document. Other formats available on request.
$29.99
Picture of Alberta Joint Operating Agreement

Alberta Joint Operating Agreement

Enter into a Joint Operating Agreement to govern operation and maintenance of Alberta oil and gas properties with this customizable template.

  • The parties collectively own 100% interest in the subject lands and want to provide for the operation and maintenance of the title documents and the joint lands.
  • All benefits, revenues, costs and expenses will be apportioned among the parties according to their respective interests.
  • Provisions for selection of leases earned by drilling of prior lease earning wells, including method of selection if the parties cannot agree.
  • The operator is responsible for making timely application for royalty holidays or abatements on behalf of the parties.
  • The operator is given the authority to make GST elections on behalf of the parties.
  • This Joint Operating Agreement is a downloadable and fully editable legal document that is intended for use in the Province of Alberta, Canada.
$17.99