Does anyone have any experience with Westland Oil and Gas? I have received a lease offer for 23-01S-04W Stephens County Oklahoma
Section 23 is part of several multi-unit wells being drilled by Continental. You should have received the Oklahoma Corporation Commission filings if your name, address, etc are filed with the Stephens County Clerk’s office.
I’m interested to know what interest Westland is wanting to lease as the pertinent zones are being drilled.
Todd, they are wanting below the Woodford for sure. I own in that section and got the same letter.
That is what I figured. I have gotten offers from others in this area for the Hunton. I scratch my head on that but maybe someone has “a better idea”.
I contacted a representative for Westland. He says they are drilling at a different depth. I requested he send over a copy of lease. I have never heard of one company being at one depth and another company leasing at another depth.
Horizontal severances happen all the time. That is why we put depth clauses in leases.
Thank you for all your help. This makes me feel a lot better about this lease offer.
When you get lease offers like that, you should be very careful about language in the lease and how they are describing the depths that they are trying to lease. In my opinion as a geologist, not an attorney, is that the language for X horizon as tied to well XXX #X, name the horizon and the depths in the well. You want to make sure that you are not tangling with a lease or a pooling that already holds you.
We had one recently that we could not lease until the OCC determined the language in the spacing agreement. Then we could tie the lease language to the Order number. They were trying to lease in between two zones, one that was held by a waterflood unit and one that was pooled, so quite complex.
Offer 4 is the best in my opinion however do NOT accept the 2-year option and strike any warranty.
Thank you for all the advise. You do not know how much I appreciate you all.
If the draft lease language allows post production charges, allows free use of oil and gas and water, wants a warranty or has an option to extend (among other items) no depth clause or no commencement of drilling clause, then suggest that you get a good oil and gas attorney to take a look at it and make the suggested edits.
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