Fill and Sign the Geophysical Exploration Agreement Form

GEOPHYSICAL EXPLORATION AGREEMENT (With Mineral Owner, with Option to Purchase Oil and Gas Lease) State: County: Owner: (Name and Address) Operator: (Name and Address) Effective Date: Owner, named above, owns an undivided (Fraction or Percentage) mineral interest in the following land located in the county and state named above (the "Land"): (Description of Land) Operator, named above, desires to evaluate the Land for potential oil and/or gas exploration by conducting seismic surveys and/or other geophysical explorations on the Land, and obtain an option to purchase an oil and gas lease on owner's mineral interest in the Land or parts of the Land, which appear to be prospective of oil and gas production. For adequate consideration, Owner and Operator agree as follows: 1. Owner grants, sells, and conveys to Operator the exclusive right and option (the "Option") to enter on the Land for the purpose of conducting seismic surveys and/or other geophysical explorations of the Land to determine the prospective value of the Land for t he production of oil and/or gas (the "Operations"). Operations shall be conducted by Operator or by independent contractors hired by Operator at Operator's sole risk, cost, and expense. Operations shall consist of shooting seismic lines over and across the Land, as Operator in the exerc ise of its sole discretion deems reasonable or necessary. The methods and equipment employed in the Operations shall be the usual and customary methods and equipment generally employed in conducting similar activities. 2. The Option shall be for a term of ____ (the "Term") from the Effective Date stated above. All Operations on the Land shall be commenced and completed on or before the expirat ion of the Term. Operations on the Land shall end at 5 p.m. on (Last Day of Term). 3. Upon signing this Agreement, Operator shall deliver to Owner the sum of $____ (the "Option Fee") which shall be the sole consideration paid by Operator to Owner for the Option. The Option Fee shall be nonrefundable and shall be retained by Owner regardless of whether Operator elects to purchase an oil and gas lease from Owner as provided in paragraph 4. be low. However, in the event Operator elects to purchase an oil and gas lease as provided bel ow, the Option Fee shall be a credit against and deducted from the total bonus consideration to be paid by Operator to Owner for the purchase of the oil and gas lease. 4. Within ____ days following the expiration of the Term, Operator shall have the option, exercisable at its sole discretion, to purchase an Oil and Gas Lease (the "Lease") covering all or a portion of the Land for the bonus consideration of $____ per net mineral acre to be covered by the Lease (the "Bonus"). The Bonus shall be proportionately reduced to the actual mineral interest Owner owns in the Land (or portions of the Land) included in the Lease. This Lease will provide for a ____ royalty and a ____ primary term. It shall be on a form of Lease attached t o this Agreement as Exhibit "A," which Exhibit is incorporated into this Agreement for all purposes. If owner elects to exercise the Option to acquire the Lease, on or before the ____ day following the end of the Term, Operator shall deliver to Owner payment in the amount of the Bonus. Simultaneously with the delivery of the payment to Owner, Owner shall deliver to Operator a fully executed and acknowledged Lease. The Lease shall be dated the dat e on which the Bonus is paid to Owner. 5. The Option Fee and Bonus shall be in lieu of and in full satisfaction and discharge of all ordinary and customary damages resulting to the Land from Operator's Operations. 6. Operator agrees to notify Owner in advance of the commencement of Operations. Owner shall have full and unlimited access to the Land during Operations. The terms and provisions contained in this Agreement shall be binding on and inure to the benefit of Owner and Operator and their respective heirs, personal representatives, successors, and/or assigns. This Agreement is signed by Owner and Operator as of the date of acknowledgment of their respective signatures below, but is effective for all purposes as of the Effective Date stated above. Owner Operator [Exhibit "A": Form of Oil and Gas Lease]