Farmout agreements (also known as farm-out agreements) are type of agreement that specific to the oil and gas industry wherein an owner (the “farmor”) of a mineral lease (or multiple mineral leases) agrees to give a percentage of said ownership to another company (the “farmee”) in exchange for providing services. It is important to note that farmout agreements are distinct from conventional transactions between lessees in the oil and gas industry because the consideration is the rendering of services, not money. Another similar agreement is a Purchase and Sale Agreement, however, here again, the farmout agreement is distinct because the transfer of assets (in exchange for services) may not happen until a later date, usually when an agreed upon “earning barrier” has been met.
Here are 4 farm-out agreements currently available on RealDealDocs.com:
1) Farm-Out agreement
IVANHOE ENERGY INC
RICHFIRST HOLDINGS LIMITED
PAN-CHINA RESOURCES LTD.
SUNWING ENERGY LTD
2) Farm-Out Agreement
LA CORTEZ ENERGY, INC.
Emerald Energy Plc
3) Farm-Out Agreement
AMERICAN EAGLE ENERGY CORP
American Eagle Energy Corporation
American Eagle Energy Inc
AMZG, Inc
USG Properties Bakken I, LLC
4) Seismic Data Acquisition and Farm Out Agreement
TRANS ENERGY INC