Warning

Info

Warning

Info

Warning

Info

LSDefine

Simple English definitions for legal terms

farmout agreement

Read a random definition: former punishment

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
19:43
@Dkk: yeah register 1 website and every swinging tom dick and harry calls/emails/texts to 'help with seo'. like bruh, if YOU found it, what i am doing is working
Dkk
19:43
Indeed!
19:48
wasp, i think people are hopeful for a gov who at least attempts to care about the common man
MIAMI A
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
[] baddestbunny
4:29
let’s get after it boys and girls
Dkk
5:21
I gtg to bed soon.
Dkk
5:22
Big day today. Gunna be a crazy one. I will sleep through the first half.
LSD+ is ad-free, with DMs, discounts, case briefs & more.