Donald, the only active well I find in 16 (Okla Tax Commission https://www4.oktax.onenet.net/GrossProduction/PublicSearchPUNbyLegal.php) is the MCKIDDY TR 1, operated by Veenker. If the Bronco well is productive, eventually there will be interest in the surrounding areas. The formations of interest are targets for horizontal drilling, and almost all of those spacing units are 640 acres. One of the exhibits above shows the thickness (important to horizontal drilling) of the target formations in drilling records from old reference wells in the area. Some of these targets are shale (source rock), which in the past were not productive because it is so dense, but now releases oil and gas using fracture technology. Shallow inland sea beds, millions of years ago, became compacted and organic matter matured into hydrocarbons. The shorelines and depths of water vary so the boundaries of possible production are very irregular.
Since you also have minerals in Seminole and Pottawatomie counties, I will make a short response a little longer. Silver Creek now has drilled about 75 wells, beginning in Hughes County, and generally moving west. You could take a look at that county forum group for some recent comments. Then they moved into Seminole County and now Pottawatomie and Cleveland. It seems they are trying to define the limits of productive Woodford shale, although they have produced horizontal wells from other formations. Up to this time, stretching from Hughes County to Cleveland counties, the Woodford seems to be thick enough in portions of the 6N and 7N Townships. The first of their wells in Pottawatomie County is in 4-6N-2E, with the surface location in 9-6N-2E. If you want, you can look it up with the info in my response on the Pottawatomie County Group Forum. It was drilled a few weeks before the Bronco. In the next few months we will know more about the potential value of our mineral interests.
If there is production potential in Section 16, you will probably receive at least one unsolicited offer to purchase your mineral interest (remember the 5 M’s) and then a letter from an attorney representing Silver Creek (or some other company) with your copy of an Application for Spacing which has been filed for hearing before the OCC. This could happen at any time. This does not mean that a well will be drilled or produced. Remember the “counting chickens before the eggs hatch” and “don’t spend the money before the check clears” sayings. But we can hope.
Now to your question about the old lease production, no the old lease will not be terminated. Almost certainly, if a well is proposed, the operating company will choose to take a working interest in the new well, or sell your lease. Since your lease is old, my bet is that it is a 1/8th royalty. If you can’t find a copy, I’ll help you find the recording information and you can probably call and get it from the County Clerk for their fee. If you have minerals in the section that are not held by production, you will get offers to lease.
I can tell you that Silver Creek, through their agent United Land Services, has recently exercised a 2-year option on a lease in Section 1-6N-1E, and probably covering their interests around the area. In just the last few weeks Silver Creek has initiated Spacing and Pooling for Section 12-6N-1E and Section 9-6N-2E. So there is some reason for optimism.