Thank you for your input Gary. The lease covers the SW/4 of Section 32-Township 17N-Range 5W of Kingfisher County, Oklahoma. There is only one well on the property which is located in the NE corner of the quarter. The well name is Brian #2-32. I looked on the Oklahoma Corporation Commission’s website and their records indicate the spud date was 2-16-1982 and the drill end date was 3-12-1982. The well is still currently producing - very little, but still in operation.
During some of my research I found where a cousin of mine had leased the W/2 of the SW/4 to a different company. This makes me believe that my portion of interest is open for lease in the W/2 as well. Do you believe this is true as well? Also, other content in the lease reads, “However, no unit for the production primarily of oil shall embrace more than 40 acres of oil, or for the production primarily of gas with or without distillate more than 640 acres; provided that if any governmental regulation shall prescribe a spacing pattern for the development of the field or allocate a producing allowable based on acreage per well, then any such unit may embrace as much additional acreage as may be so prescribed or as may be used in such allocation of allowable.”
I own 26 net mineral acres on the whole 160 acres. I am thinking that 13 are on the E/2 SW/4 and 13 on the W/2 SW/4. I know I may have to hire an attorney before this is all said and done, but I am trying to educate myself as much as I can from knowledgeable people like you. Another question I have is concerning calculation of my decimal interest. I know it doesn’t matter if it is based on 26 net mineral acres /160 acres, or 13 net mineral acres/80 acres, as the decimal interest would be the same, but does the above referenced clause in the lease indicate it should be calculated on 40 acres instead?
To date, I have not signed anything - just trying to understand what the stipulations in the original lease mean. I wish stuff was written in layman’s terms - any help you can give me will be greatly appreciated!