A more thorough explanation:

Definition: A farmoutor is a person or company that leases land for oil and gas exploration and then assigns the lease to another party who agrees to drill a well.

For example, if Company A leases land for oil and gas exploration but does not have the resources or expertise to drill a well, they may assign the lease to Company B, who agrees to drill the well. In this scenario, Company A is the farmoutor and Company B is the assignee.

The term "farmoutor" can also be spelled "farmouter" and is sometimes referred to as a "farmor" or "farminor."