2 lease companies on same land?

Oil and Gas Leasing Help
1

We have an existing lease with operating vertical well at 4000 ft. depth and a new lease offer to drill to 6000-7000 ft. depth and do horizontal well. Can both leases be in effect on same land?

thanks

Ron

2

Ron:

Yes, the new lease offer is for a different zone. But, it also depends on the existing lease and the zones originally leased. Many leases contain Pugh Clauses that restricts zones below the producing zone. All really depends on the original lease.

3

Thanks, Charles, for the response. I am reading the lease and there is nothing about drilling depths OR reference to Pugh Clauses. The lady representing Capital Land Services is supposed to be researching lease and calling me. I just wanted another opinion.


Ron
charles s mallory said:

Ron:

Yes, the new lease offer is for a different zone. But, it also depends on the existing lease and the zones originally leased. Many leases contain Pugh Clauses that restricts zones below the producing zone. All really depends on the original lease.