Battle Wells Section 34 T21S, R33E Lea County, NM

[Rick5]

Hello. I have a question about a lease that may have expired this month on the above referenced section, township and range. Marathon Oil Company spud three wells and commenced drilling in 2019. When Covid hit Marathon ceased drilling. They have not recommenced drilling and the NM Oil Conservation does not show any activity past late 2019 early 2020.

We leased this interest to Fortress Energy in 2019 for a three year term. That term has expired this month, unless Marathon is still actively drilling these three horizontal “Battle” wells.

Am I correct in my guesstimate that our lease has expired?

Thanks for any info.

[Diesel]

This is a complex situation. Someone would probably need to read the lease to answer that question.

[maxroyalty]

On this one you will want an oil and gas attorney to review the lease to see if it is open. Or find someone you can lease to (without warranty) who will research that for you. Our group has taken such leases in the past.

[NMoilboy]

I’m curious how bonkers your acreage is Pugh’d out so the existing 1H and/or 2H don’t hold whatever BoneSpring depths your lease covers.

Probably not as bonkers as MRO drilling and casing 3 wells to TD and then just saying NAH, lets frac Bakken wells.