Area Of Mutual Interest - AMI

AAA

DEFINITION of 'Area Of Mutual Interest - AMI'

A geographic location in which more than one oil and/or natural gas company has a stake. The area of mutual interest (AMI) is defined by a contract that describes the geographic area contained in the AMI, the rights each party has in the AMI (such as the a percentage of the 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.

INVESTOPEDIA EXPLAINS 'Area Of Mutual Interest - AMI'

The AMI agreement may also define how the parties to 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.



RELATED TERMS
  1. Global Strategic Petroleum Reserves ...

    Global Strategic Petroleum Reserves (GSPR) are crude oil inventories ...
  2. Integrated Oil & Gas Company

    A business entity that engages in the exploration, production, ...
  3. International Petroleum Investment ...

    The International Petroleum Investment Company (IPIC) is a government-owned ...
  4. Oil Field

    A tract of land used for extracting petroleum, or crude oil, ...
  5. EIA Petroleum Status Report

    A report published every Wednesday by the Energy Information ...
  6. Organization Of Petroleum Exporting ...

    An organization consisting of the world's major oil-exporting ...
Related Articles
  1. Active Trading

    Oil And Gas Industry Primer

    Before jumping into this hot sector, learn how these companies make their money.
  2. Active Trading

    How Does Crude Oil Affect Gas Prices?

    Find out how this commodity's fluctuating price affects more than just how much you pay at the pump.
  3. Economics

    Meet OPEC, Manager Of Oil Wealth

    This organization's decisions can influence oil prices, but there is a limit to its power.
  4. Chart Advisor

    It Might Not Be The Time To Buy Into Steel and Iron

    This past week, commodity traders turned their attention toward stocks in the steel and iron sector, but based on the charts it may be too early to take a position.
  5. Economics

    Sectors Hit by Sanctions on North Korea

    We look at the sectors most affected by the US sanctions imposed against North Korea.
  6. Stock Analysis

    How Is SandRidge Energy Really Looking To Grow?

    SandRidge Energy is following the playbook of almost every other oil and gas company in the country: cutting spending and delivering meager growth.
  7. Mutual Funds & ETFs

    Why Big Russia Bettors Should Consider This ETF

    Investing in the RSX ETF is investing in Russia.
  8. Economics

    Iron Ore Market: Falling Into The Hands Of A Few

    The big iron ore mining companies have embarked on a drive to increase supply, reduce cost, and take market share.
  9. Stock Analysis

    Is It Time To Start Buying Seadrill?

    West Texas Intermediate oil prices have collapsed from nearly $110 to less than $44 recently, crushing producers, contract drillers, and oil service stocks
  10. Investing

    Will Clean Energy Fuels Create A Better Network?

    Ever since the most recent U.S. energy boom began, many people have looked for ways to take advantage of cheap natural gas from shale gas areas.

You May Also Like

Hot Definitions
  1. Fixed-Charge Coverage Ratio

    A ratio that indicates a firm's ability to satisfy fixed financing expenses, such as interest and leases. It is calculated ...
  2. Efficiency Ratio

    Ratios that are typically used to analyze how well a company uses its assets and liabilities internally. Efficiency Ratios ...
  3. Fixed Cost

    A cost that does not change with an increase or decrease in the amount of goods or services produced. Fixed costs are expenses ...
  4. Subsidy

    A benefit given by the government to groups or individuals usually in the form of a cash payment or tax reduction. The subsidy ...
  5. Sunk Cost

    A cost that has already been incurred and thus cannot be recovered. A sunk cost differs from other, future costs that a business ...
  6. Technical Skills

    1. The knowledge and abilities needed to accomplish mathematical, engineering, scientific or computer-related duties, as ...
Trading Center