We have been receiving royalty checks From Alta Mesa Resources for our land in Kingfisher. There was no oil/gas production when the original contract was signed over 3 years ago. This contract was negotiated through .
Will one of these companies contact us or should I contact them to discuss the contract renewal?
Now that there is active production can we negotiate a higher per acre value?
I appreciate any replies.
Dear John3,
From what you’ve said, it appears that your land has entered into the secondary term through production.
The oil and gas lease, based on your post, is being perpetuated by production and is still a valid contract. All of the negotiation was done when the original lease was executed.
Congratulations on having a producing oil and/or gas well on your property.
Best regards,
Buddy Cotten
That is helpful and thanks for the reply, John
Great point.
It is not unusual for leases to be held by production (HBD) for decades and generations. That is why it is so vital to focus on the royalty payment over the bonus. Also the devil is in the details of the lease terms.
I signed a oil lease in 2015, I haven’t heard from anyone since whats the next step.
If you post the section, township and range, we can help. The lease may have died from no drilling, or it might be active.
Oil and gas leases on sec.20,16range,range7w,Dewey county,oak.
Do you mean 20-16N-7W Kingfisher County?