Carried Interest

Carried Interest means:
a sharing arrangement in which the owner of a working interest in an oil or gas venture (the carried party) assigns all or part of the interest to a second party (the carrying party). The second party (i.e., the driller) receives all production revenues until a specified amount (i.e., payout) has been recovered by the second party. After payout, the parties share revenues, expenses, and ownership on an agreed-upon basis.