How often does it happen that a company will start to drill and spud it rather than take it to completion? Is that not a foolish waste of resource?
David Peterson said:
I had the chance to talk (via radio show) with an oil company exec a few months ago asking the specifics of whether a lease is "saved" because they have "spudded" or whether actual "production" has taken place. The person mentioned that his understanding is that the lease is fulfilled (saved) when the well is spudded...although I sense it best to read through the lease carefully to see if this pertains to your lease. Obviously, this gives the oil company a huge advantage in not having to have production take place in order to "save the lease"!! Perhaps worth a checking into the fine print of your lease!! Good Luck.
Dave