Home > Terms > English, UK (UE) > Drilling arrangement

Drilling arrangement

A contractual agreement under which a working interest owner (assignor) assigns a part of a working interest in a property to another party (the assignee) in exchange for which the assignee agrees to develope the property. The term may also be applied to an agreement under which an operator assigns fractional shares in production from a property to participants for cash considerations as a means of acquiring cash for developing the property.Under a "disproportionate cost" drilling arrangement, the participants normally pay a greater total share of costs than the total value of the fractional shares of the property received in the arrangement.

This is auto-generated content. You can help to improve it.
0
Collect to Blossary

Member comments

You have to log in to post to discussions.

Terms in the News

Featured Terms

Harry8L
  • 0

    Terms

  • 0

    Blossaries

  • 1

    Followers

Industry/Domain: Automotive Category: Automobile

BMW i8

The latest from BMW is this power packed combination of beauty, speed and efficiency. Yes it is the BMW i8, this beast clearly defies the ever extant ...