Work Commitment
This term refers to Contractor's commitment to the owner of the oil and gas rights, outlining the specific work that will be guaranteed during the exploration phase. The commitment is usually made in both money amounts and the type of exploration to be undertaken (seismic surveys, exploration wells etc.). This commitment is usually divided into two or three exploration stages (about two years each) during the Exploration Period. The Work Commitment represents the minimum expenditure that a company may make during each stage - it can certainly spend more and often does. If more funds are spent in one stage, the excess normally can be credited to the next stage.
