LexisNexis Publishes Article on Farmout Agreements by David Sweeney

“The Basics of Farmout Agreements,” an article written by Akin Gump oil and gas partner David Sweeney, has been published by LexisNexis as part of its Practice Advisor series.

The article explains the history and nuts and bolts of U.S. and non-U.S. farmout agreements, including common party objectives, tax considerations, earned and retained interest descriptions, promotes, drill-to-earn vs. produce-to-earn arrangements, cost caps and other “off-ramps,” the incorporation of customary acquisition and divestiture terms, and common problem areas.