Warning

Info

Warning

Info

Warning

Info

LSDefine

Simple English definitions for legal terms

farmout agreement

Read a random definition: Special Election

A quick definition of farmout agreement:

A farmout agreement is when someone who owns an oil-and-gas lease agrees to let someone else drill and test on the lease in exchange for a share of the interest in the lease. This helps the owner either maintain the lease or get production without costs, while the other person gets access to the land at a lower cost. It can also keep people and equipment employed.

A more thorough explanation:

A farmout agreement is a contract in the oil and gas industry where the owner of an oil-and-gas lease (the farmor) agrees to assign a portion of the lease to another party (the farmee) in exchange for drilling and testing operations on the lease. The farmor benefits by either securing production or obtaining an interest in production without costs, while the farmee gains access to acreage that is not otherwise available or at a lower cost. This agreement can also keep people and equipment employed.

For example, if a company owns an oil-and-gas lease but does not have the resources to drill and test the area, they can enter into a farmout agreement with another company that has the resources. The second company will perform the drilling and testing operations and, in return, will receive a portion of the lease.

farm out | farmoutee

Warning

Info

General

General chat about the legal profession.
main_chatroom
👍 Chat vibe: 0 👎
Help us make LSD better!
Tell us what's important to you
medicine is a scam
join the ethically ambiguous legal field instead
Dkk
18:57
I want to meet an attorney that defends clients who run into flat earth problems. I want an attorney that knows and believes in flat earth theory.
19:05
i want a flat earther for president. i want a guy who posts on 4chan for president. i want someone who mogs for president.
Dkk
19:18
Exactly. My version of that awful poem.
Dkk
19:19
I can accept a president with maybe one or two of the poems traits hut good God, all of them??? No ty.
windyMagician
19:20
president who respects sex is crazy
windyMagician
19:20
we had bill clinton already
Dkk
19:21
Bill Clinton, first and last black president
windyMagician
19:23
I want to go running but my leg feels weird
windyMagician
19:23
it doesn't hurt its just tingly
Dkk
19:26
It needs more alcohol. You tingle when your nerves need watering.
19:27
try stretching it maybe to see what's up
windyMagician
19:27
stretches make me think it's just soreness
windyMagician
19:27
I'm sober lol
Dkk
19:38
Anyone else get the google notification that your LSD password has been compromised lol. LSD got hacked.
20:48
what.jpg @Dkk
CynicalOops
21:03
You think you just fell out of a coconut tree?
jackfrost11770
21:10
nope dk
CynicalOops
22:37
Calvinamala Harris
jackfrost11770
23:16
should i start using letterboxed again
Dkk
23:25
@jackfrost11770: if you want but like it aint for me
dk do u ever eat at bk
Dkk
23:48
@chickenburgahfart: I would do that in the Army if really desperate for food or if I had to work through lunch. One of the few fast food places I go to.
bk so slept on
Dkk
0:23
I will take In N Out everyday over it when I can though.
texaslawhopefully
1:22
In N Out is not only the best fast food place, but the prices too are fantastic
Dkk
1:27
Indeed, indeed.
LSD+ is ad-free, with DMs, discounts, case briefs & more.