Our oil company advised us not all of our land was leased

Oil and Gas Leasing Help
1

We have about 280 acres in Karnes County with 18 wells producing for over three years. This company advised us that 11 of the 280 acres are unleased. They want us to sign a lease at original agreement, but the current lease rate it over 5000 an acre with 25%. What options may we have and could they owe us 100% of the 11 acres they have been producing for the last 3 years.

2

Randy- It will depend on whether the 11 acres had a well on it, whether a unit was formed, and some other factors, but you definitely want to push to get paid back to date of first production.

3

Yes all acres are in the pools that have production

4

Hi Randy!

Mr. Caldwell is a very experienced Attorney and always has good advice, but I asked another Attorney what your situation was and he replied: "They are mineral co-tenants and they will not get paid until their share of the drilling, completing, equipping, and operations expenses are recovered."

Many of the Wells in Karnes County reach Payout in a matter of months. If you would like me to look up Production and Sales information on your Wells I will be happy to do that for you. Those figures may help you decide which way to go.

You can post a list of them here or send them more privately by accepting my invitation to become A Friend on The Forum, which I will send in a minute.

Charles Emery Tooke III

Certified Professional Landman

Fort Worth, Texas

5

We were recently contacted by a small company indicating that we have a lease that has a depth clause and they indicated that they would like to lease the deeper depths at $1500/acre for a 3/16th interest(Kingfisher County, OK). What they sent over however makes no mention of depth and the document is a Partial Term Assignment of Oil and Gas Leases that seems to convey the entire lease to them excluding the existing (shallow drilled) wellbore and providing back to us a confusing ORRI interest. Is that how deeper depths are leased? It doesn't feel right. Worth noting that Devon is already setting up the well site for a multiunit Horizontal well. Any helpful comments would be appreciated.

PS Sorry I didn't realize this was a county specific forum. I do apologize for that.