05.07.2009

In a farmout agreement, this is the ratio between expenditure and interest earned in a license. An arrangement whereby a farmee reimburses the farmor’s past costs and pays for exploration work and then takes a pro rata share of the farmor’s interest is known as a ground floor deal, but if the farmee only earns half the farmor’s interest in return for paying all the cost of the work it is described as a two for one promote

Gina Cohen
Natural Gas Expert
Phone:
972-54-4203480
[contact-form-7 id="25054" title="Contact form 1"]