60 acres in section 12-23N-13W. Is this worth anything? The lease expires on June 3rd, 2027. I guess I should try and sell it to an oil/gas developer?
There are 3 old, active wells in the area. Two gas producing wells, one in the northwest quarter of the southeast quarter of the northwest quarter and one in the northwest quarter of the southeast quarter of the southeast quarter of that section, both permitted in 1987. One oil producing well was permitted in 1997, and is in the northwest quarter of the southeast quarter of the southwest quarter of the section. There are 3 plugged/abandoned gas wells in other areas that once belonged to Chesapeake. You might consider waiting to see if you’re offered another lease.
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You might not want to be in too much of a hurry to sell. There are permits for horizontal wells just to the north of you that extend into 2-23N-13W. Validus has the two Black Swan wells.
Thanks for that information, it is greatly appreciated
It is a common point of confusion, but the date you see on your lease is likely just the end of the Primary Term. In the oil and gas world, that date isn’t necessarily a hard expiration.
Here is a quick breakdown of how these timelines actually work:
The Primary Term
This is the initial window (in your case, ending June 3, 2027) where the oil company has the exclusive right to explore and drill. If they don’t move dirt or establish production by that date, the lease typically expires, and the rights “revert” to you.
The “Held by Production” (HBP) Clause
Most leases contain a clause stating that if a well is drilled and produces oil or gas in “paying quantities” during the primary term, the lease is automatically extended into a Secondary Term. As long as that well keeps producing, the lease stays in effect indefinitely.
Notice: Informational only. No attorney-client relationship is formed by this post. I am an Oklahoma-licensed attorney, but this is not legal advice. Do not share confidential facts in this public space.
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