Area Of Mutual Interest - AMI

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.



comments powered by Disqus
Hot Definitions
  1. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the acquiring company will make an offer for the outstanding shares.
  2. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by additional investment would not warrant the expense. A harvest strategy is employed when a line of business is considered to be a cash cow, meaning that the brand is mature and is unlikely to grow if more investment is added.
  3. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will be executed at a specified price (or better) after a given stop price has been reached. Once the stop price is reached, the stop-limit order becomes a limit order to buy (or sell) at the limit price or better.
  4. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The principle states that, for many phenomena, 20% of invested input is responsible for 80% of the results obtained. Put another way, 80% of consequences stem from 20% of the causes.
  5. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The principle states that, for many phenomena, 20% of invested input is responsible for 80% of the results obtained. Put another way, 80% of consequences stem from 20% of the causes.
  6. Budget Deficit

    A status of financial health in which expenditures exceed revenue. The term "budget deficit" is most commonly used to refer to government spending rather than business or individual spending. When referring to accrued federal government deficits, the term "national debt” is used.
Trading Center