Area of mutual interest (AMI),
Definition of Area of mutual interest (AMI):
Area of Mutual Interest (AMI) contracts may also define how the parties in the agreement are allowed to explore for or extract oil and natural gas in the subject lands. If any party to an AMI contract wants to pursue a venture in the specified lands, it must do so in conjunction with or with the permission of the other parties to the contract.
An area of land in which multiple natural gas or oil companies holds exploration rights. Companies with rights over an area of mutual interest generally draw up contracts to establish what percentage of the area or the resources will be allotted to which company, and how long the agreement will be in place.
Area of mutual interest (AMI) is defined by a geographic location in which more than one oil or natural gas company has a stake. An area of mutual interest (AMI) contract describes the geographic area contained in the AMI, the rights each party has in the AMI, such as the a percentage of interest allocated to each company, the length of time during which the contract will be in effect and how the contract provisions are to be implemented.
Meaning of Area of mutual interest (AMI) & Area of mutual interest (AMI) Definition