Generally speaking, the MAI is a contract between two companies that wish to retain a certain relocation of ownership shares in an area of interest (for example. B company A will own 25% and B 75%). AMIs are often included in the purchase and sale of partial lease shares and farmout agreements, where a third party makes drilling commitments for a company that wishes to maintain its stake in the lease. The Precedent of the Texas Supreme Court indicates that if the notification required by the MAI Agreement is not effective, the rights to the specific performance of these obligations will only be made when the notification takes place. Recent cases are causing delays in other oil and gas contexts, but not in this one. a) Use the maps as the only point of description. Maps are used to help E&P companies get a general idea of the size and location of a potential area. However, they often lack enough information to make an AMI enforceable. This is especially true when the boundaries of the sector concerned do not overlap with lines of inquiry or abstracts. • Geographical location and description of the prospecting area b) Describe the area as "centered" on a fixed point.
AMI agreements are not applicable if the description of the object is subject to several interpretations. For example, a prospecting area described as "1,000 acres centered around well XYZ No. 1" is probably inapplicable, as it is not certain whether the 1,000 acres should be configured as a square, circle, or other shape centered on the well. A Mutual Interest Agreement (MAI) is a contract between people or companies that, for a period of time, wish to jointly search for oil and gas in a given area. It is a common instrument for sharing development risks, ownership and associated benefits. Mutual Interest Contracts (AMIs) can also define how the parties to the agreement can explore or extract oil and gas in the countries concerned. If a party to an AMI contract wishes to sue an enterprise in the specified areas, it must do so in conjunction with or with the authorization of the other contracting parties. However, unlike the standardized joint operating agreement, AMI contracts are usually concluded by hand by the parties who promote the agreement and often have shortcomings and unintended consequences. If you are an investor or operator who wants to enter into an AMI agreement, what do you pay attention to? And what about the purchase of an interest or real estate that could be encumbered by an MAI agreement? Will your due diligence highlight the main issues related to AMI commitments? AMI contracts are usually concluded by hand by the parties to the transaction and therefore often have defects and unintended consequences. . .