Failure to fund lease agreement


#1

We executed an oil and gas lease for an interest in Borden County TX and have never received funding to consummate the lease. Do we have a breach of contract standing? It has been over 90 days.


#2

Hopefully you did not send the signed original lease to the broker. If you sent the lease, then you need to check the deed records to make sure it has not been recorded and then perhaps assigned to a third party. Contact the landman and demand the return of the original, unrecorded lease. If you have the original, then you are free to lease to another company. You might want to send notice to the landman that the transaction has failed and been terminated.


#3

We have been in contact with the landman. We are out of patience. Planning to request return of the signed original if not funded by the 15th.


#4

They are probably trying to sell the lease, and won’t have the funds to pay you until they find a lease “buyer”. If the company doesn’t fund you the same day you sign the lease, then they’re probably not well-funded at all and have to sell the lease prior to getting the funds.


#5

Copperhead returned our leases today. They knowingly filed an unfunded lease in the Borden County Courthouse where it sat for 107 days without funding. That seems akin to titling cars that are not sold. They did file papers to rescind the lease, Hopefully our Title is cleared and any interested party can see the available acreage. A big black mark for Copperhead Resources in Midland.